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 GermanDevelopment Cooperation-GIZ Vietnam and the Ministry of Construction’s Housingand Real Estate Market Management Bureau (HREM) have signed a Memorandum ofUnderstanding (MoU) for cooperation on the joint development of the VietnamGreen Housing Programme (VGHP) under the implementation of the Programme forEnergy Efficiency in Buildings (PEEB) in Vietnam.
The MoUfocuses on enabling greenhouse gas (GHG) emissions mitigation.
GIZ said theVGHP, which is supported through the GIZ Programme for Energy Efficiency inBuildings (PEEB) in Vietnam, aims to benefit the mid-income housing market bytargeting the low-cost commercial housing segment.
Under thepartnership, GIZ and HREM will develop and implement the Vietnam GreenHousing Programme. A particular focus of the programme is improving energyefficiency and reducing GHG emissions in the affordable housing market as per Vietnam’scommitment in its Nationally Determined Contribution to the Paris Agreement onClimate Change.
Through theVietnam Green Housing Programme, the partnership aims to motivate privatehousing developers to move into the market for energy-efficient and greenbuildings, and stimulate local commercial banks to develop green financingproducts for both housing developers and homebuyers, as well as green equipmentand material suppliers in the low-cost commercial housing segment.
In Vietnam,the total production value of the construction sector reached 358.6 trillionVND (15.6 billion USD), contributing 5.94 percent of the national GrossDomestic Product (GDP) in 2019.
As an emergingeconomy, Vietnam is expected to see a dramatic increase in demand for spaciousand comfortable residential property due to the rapid growth of the middleclass with approximately 50 million square meters of housing added in 2019.
“As the potentialfor GHG emissions reduction through energy efficiency in the constructionsector is enormous, this cooperative endeavour will contribute to Vietnam’s aimof reducing GHG emissions,” said Kia Fariborz, Chief Technical Advisor ofthe ‘Support Programme for the Implementation of the Paris Agreement (SIPA)’.
DeputyDirector General of HREM Ha Quang Hung highly appreciated the initiative forintegrating PEEB’s goal of energy efficiency and low emissions with theGovernment’s goal of low-cost commercial housing development.
According tocalculations, within 10 years after reaching the target, apartment buildingswill save about 6.3 billion kWh (kilowatts per hour) of electricity, equivalentto 15.8 trillion VND (687 million USD). This is a significant cost saving thatwill benefit the homebuyers if they use energy efficiently in the apartment. Inaddition, in the short term, the programme will create a plentiful supply oflow-cost commercial housing, thereby facilitating the people’s access toaffordable housing.
The PEEB is ajoint initiative between Germany and France that combines consulting, financialresources, and technical expertise from GIZ, French Development Agency (AFD),and Agency for Ecological Transition (ADEME) to help partner countries increaseenergy efficiency in buildings. The PEEB aims to minimise energy demand inbuildings at reasonable incremental costs, promote green investment in energyefficient buildings, and facilitate access to green financing frominternational and local financial institutions.
In Vietnam,the PEEB focuses on green housing programs and large-scale commercialbuildings./.
VNA
