New partnership to reduce greenhouse gas in building

European property developers are working with the Vietnamese Ministry of Construction to reduce greenhouse gas emissions in the residential property sector.

New partnership to reduce greenhouse gas in building hinh anh 1

Representatives of the German Development Co-operation-GIZ Vietnam and the Ministry of Construction’s Housing and Real Estate Market Management Bureau (HREM) sign a Memorandum of Understanding (MoU). — Photo courtesy GIZ-Vietnam

The German Development Cooperation-GIZ Vietnam and the Ministry of Construction’s Housing and Real Estate Market Management Bureau (HREM) have signed a Memorandum of Understanding (MoU) for cooperation on the joint development of the Vietnam Green Housing Programme (VGHP) under the implementation of the Programme for Energy Efficiency in Buildings (PEEB) in Vietnam.

The MoU focuses on enabling greenhouse gas (GHG) emissions mitigation.

GIZ said the VGHP, which is supported through the GIZ Programme for Energy Efficiency in Buildings (PEEB) in Vietnam, aims to benefit the mid-income housing market by targeting the low-cost commercial housing segment.

Under the partnership, GIZ and HREM will develop and implement the Vietnam Green Housing Programme. A particular focus of the programme is improving energy efficiency and reducing GHG emissions in the affordable housing market as per Vietnam’s commitment in its Nationally Determined Contribution to the Paris Agreement on Climate Change.

Through the Vietnam Green Housing Programme, the partnership aims to motivate private housing developers to move into the market for energy-efficient and green buildings, and stimulate local commercial banks to develop green financing products for both housing developers and homebuyers, as well as green equipment and material suppliers in the low-cost commercial housing segment.

In Vietnam, the total production value of the construction sector reached 358.6 trillion VND (15.6 billion USD), contributing 5.94 percent of the national Gross Domestic Product (GDP) in 2019.

As an emerging economy, Vietnam is expected to see a dramatic increase in demand for spacious and comfortable residential property due to the rapid growth of the middle class with approximately 50 million square meters of housing added in 2019.

 

“As the potential for GHG emissions reduction through energy efficiency in the construction sector is enormous, this cooperative endeavour will contribute to Vietnam’s aim of reducing GHG emissions,” said Kia Fariborz, Chief Technical Advisor of the ‘Support Programme for the Implementation of the Paris Agreement (SIPA)’.

Deputy Director General of HREM Ha Quang Hung highly appreciated the initiative for integrating PEEB’s goal of energy efficiency and low emissions with the Government’s goal of low-cost commercial housing development.

According to calculations, within 10 years after reaching the target, apartment buildings will save about 6.3 billion kWh (kilowatts per hour) of electricity, equivalent to 15.8 trillion VND (687 million USD). This is a significant cost saving that will benefit the homebuyers if they use energy efficiently in the apartment. In addition, in the short term, the programme will create a plentiful supply of low-cost commercial housing, thereby facilitating the people’s access to affordable housing.

The PEEB is a joint initiative between Germany and France that combines consulting, financial resources, and technical expertise from GIZ, French Development Agency (AFD), and Agency for Ecological Transition (ADEME) to help partner countries increase energy efficiency in buildings. The PEEB aims to minimise energy demand in buildings at reasonable incremental costs, promote green investment in energy efficient buildings, and facilitate access to green financing from international and local financial institutions.

In Vietnam, the PEEB focuses on green housing programs and large-scale commercial buildings./.VNA

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