Removing capital bottlenecks for businesses
At the consultation workshop on the draft establishment of the Fund for Promoting Energy Saving and Efficiency, organized by the Department of Innovation, Green Transformation and Industrial Promotion - Ministry of Industry and Trade on August 13 in Da Nang, this issue was raised quite clearly.
According to Ms. Nguyen Thi Lam Giang, Director of the Department of Innovation, Green Transformation and Industrial Promotion (Ministry of Industry and Trade), the potential for energy saving in industries, construction, commerce and many other fields is still very large. Many businesses have proactively improved production lines, replaced low-efficiency equipment, optimized systems and invested in new technologies. However, one of the biggest bottlenecks is still capital and access to finance.
The Fund for Promoting Energy Saving and Efficiency is designed not only as a source of support capital, but also as a financial tool to mobilize and connect resources from the State, the private sector, financial institutions and development partners into the field of energy saving and efficiency. In addition, the Fund for Promoting Energy Saving and Efficiency can also connect technical and international resources to support businesses in energy auditing, project preparation, human resource training and technology transfer" - Ms. Nguyen Thi Lam Giang emphasized.
According to Ms. Giang, the value of the Fund is not only in providing an additional source of capital, but more importantly in creating an ecosystem to support businesses from identifying potential, preparing projects, technical support, mobilizing capital to deploying investment and achieving energy saving results.
The draft is being consulted, the Fund aims for a non-budget state financial fund model, operating not for profit purposes. The value of the model is not simply that the State has an additional amount of money to support businesses, but more importantly, it creates a mechanism to mobilize many different resources to participate.
Raising private capital
The Fund model also sets a larger requirement: State resources need to play a leading role in mobilizing more social resources. The European Union Delegation to Vietnam assessed the establishment of the Fund as an important initiative to turn energy efficiency goals and policies into specific actions and investments.
According to Ms. Tran Thuy Duong - Director of the European Union Delegation Program in Vietnam, the Law amending and supplementing a number of articles of the Law on Energy Saving and Efficiency Use has created an important legal foundation for establishing the Fund to Promote Energy Saving and Efficiency Use, which is a non-budgetary state financial fund, operating not for profit purposes.
This is an important initiative to turn energy efficiency goals and policies into specific actions and investments. A well-designed Fund can contribute to mobilizing more resources, promoting investment in energy-saving technology and solutions, and supporting businesses to bring energy efficiency projects from idea to practice," said the Director of the European Union Delegation Program in Vietnam.
At the Workshop, expert delegates exchanged and presented many contents on: International experience in implementing the Fund for Promoting Energy Saving and Efficiency, including experience from similar Funds in Vietnam; Experience in managing entrusted lending from Funds and projects of Banks; Experience in implementing energy-saving investment projects according to the ESCO model; Recommendations on Fund design (organisation model, operating mechanism, financial resources and forms of support, roadmap for establishing the Fund)... to support the Department of Innovation, Green Transformation and Promotion to build a feasible, effective and sustainable Fund model.
