3 June 2010: The UN Development Programme (UNDP) and the Government of Viet Nam, through the Global Environment Facility (GEF), are helping to green small and medium enterprises (SMEs) in the brick, ceramics, textiles, paper production and food processing sectors.
UNDP reports that the project raises awareness among managers, and has been providing technical and financial support to install energy efficient technologies for the past four years. It is estimated that, so far, the initiative has benefited over 400 businesses, which has resulted in significant energy savings, by replacing outdated equipment and providing financing options for investment in efficient production processes. SMEs have become the key generator of jobs in Viet Nam and the use of energy-efficient technologies has the potential to increase the profits of businesses while significantly reducing carbon emissions. The project’s success is due to the partnership between the Government and financial institutions that aim to set up financial and tax schemes for SMEs to motivate the adoption of energy-efficient measures. A Loan Guarantee Fund has also been set up to reduce the risks of financial institutions providing loans to SMEs for energy-efficiency investments. [UNDP Press Release]