According to foreign sources involved with the discussions, Vietnam is wrapping up reform agreements with the G7 countries and multilateral lenders that may open up billions of euros in loans to cut coal consumption in the industrial heartland of Southeast Asia.

Before the UN Climate Change Conference (COP28), which starts on Thursday in Dubai, the Resource Mobilization Plan must receive investor approval.

One foreign official stated, “Some work (is) still ongoing, mainly on changes to the regulatory framework and obstacles for investments.” At the same time, the document was anticipated to be agreed upon in good time.

Expectations were raised that the strategy may be revealed during the COP28, where Vietnam’s Prime Minister Pham Minh Chinh will be present from November 30 to December 3. According to a second foreign official, no significant issues remained, and final version clearance “is very nearly there.”

Since they were not permitted to speak with the media on the record, the two foreign officials declined to be identified.

The Prime Minister’s office and Vietnam’s environment ministry did not immediately respond to requests for information.

Reuters has not seen the most recent draft of the proposal. Vietnam’s promises and over 400 projects that may get funding from Group of Seven (G7) members were mentioned in a draft from late October that Reuters examined. Of those projects, 272 were related to energy infrastructure, such as wind and solar farms and enhancements to the power system.

Vietnam will get $15.5 billion, primarily in the form of market-rate commercial loans spread over three to five years, as part of a deal made with international investors, primarily from G7 countries, last year to increase the country’s use of renewable energy sources and reduce its reliance on coal. Given Vietnam’s history of rejecting foreign loans, it is uncertain if the country would accept the ones that are being offered.

Vietnam expects to cut its coal proportion from 31% of its installed capacity in 2020 to 20% by 2030, even though the country would burn more coal overall in terms of consumption.

In the first ten months of this year, 80 million tons of coal were mined domestically, and 80 million tons were imported; imports comprised over half of the total, placing the nation among the top 20 users worldwide.

The government intends to increase the capacity of its coal-fired power facilities from over 21 GW in 2020 to over 30 GW by 2030. After 2030, it has pledged to stop constructing coal-fired power projects.

Foreign investors have long sought to strengthen Vietnam’s reform pledges and voiced disapproval of the nation’s intention to decrease coal use only after increasing installed capacity until 2030.

They are relying on offshore wind to offset coal use partially. Still, Hanoi indicated in its draft offshore wind rules from October that these moves are “potential” and would likely be finalized in 2025, meaning the industry’s 2030 objectives will probably be missed.