The French Development Agency (AFD) will provide Vietnam with a concessional loan of 20 million EUR (over 22.38 million USD) for phase five of the Support Programme to Respond to Climate Change (SPRCC) in Vietnam, as stipulated in an agreement signed on May 19.

The deal was inked in Hanoi by French Ambassador to Vietnam Jean-Noel Poirier, AFD Director in Vietnam Remi Genevey, and Vietnamese Deputy Minister of Finance Truong Chi Trung.

The AFD will disburse the money within this year, ahead of the 21 st United Nations Climate Change Conference (COP 21) in Paris this December.

The loan adds up to 100 million EUR (over 111.98 million USD) of the agency’s total support to the SPRCC.

The SPRCC, initiated by the AFD and the Japan International Cooperation Agency in 2009, assists the Vietnamese Government in sector reforms to cope with climate change effectively and encourage the low CO2 emissions.

Deputy Minister Truong Chi Trung appreciated the AFD’s contributions to agricultural, rural infrastructure building, banking and financial activities in Vietnam .

The country hopes for more assistance from the French Government and the AFD in climate change prevention and the realisation of national green growth targets as it is among those most susceptible to climate change, he added.

Poirier spoke highly of Vietnam ’s preparations for its participation in the COP 21, adding that the French Government is willing to cooperate with Vietnam in climate change.

Besides financial aid, the AFD has also provided technical assistance in defining efficient energy use targets, preparing action plans on energy efficiency at buildings in central Da Nang city, and sharing experience between the two countries in monitoring public spending on climate change response and renewable energy.

Climate change prevention is in the focus of the AFD’s activities in Vietnam . Between 2006 and 2014, the agency earmarked 471 million EUR for 16 development projects with environmental benefits in the country.

VNA