EU reinforces support for Vietnam’s Just Energy Transition with €430 million package

This article is published in association with European Investment Bank.

Commissioner Síkela met with the deputy Prime Minister of Vietnam, Bùi Thanh Sơn during the Global Gateway Forum. In the margins of the meeting, the European Commission and other Team Europe actors announced a comprehensive €430 million package to advance the Bac Ai Pumped Hydro Storage Project, a flagship investment under Vietnam’s Just Energy Transition Partnership (JETP).

The Just Energy Transition Partnership, co-led by the EU and the United Kingdom, aims to accelerate the shift towards a greener, more resilient energy future in Vietnam. The Bac Ai Pumped Hydro Storage Project will provide essential flexibility and stability to Vietnam’s power system, facilitating the large-scale integration of renewable energy and contributing to the country’s decarbonisation goals.

Commissioner Síkela said: “The Bac Ai project is a cornerstone of our joint efforts to build a cleaner, more reliable energy system that supports sustainable growth and attracts private investment. This shows Team Europe’s determination to deliver on Vietnam’s Just Energy Transition Partnership. Through Global Gateway, we are turning commitments into concrete results for people, the planet, and our shared prosperity.”

The Bac Ai Pumped Hydro Storage Project is one of the largest energy transition investments under Vietnam’s JETP, designed to enhance grid stability and enable higher shares of renewable generation. The project exemplifies the Global Gateway approach, mobilising public and private finance, applying high standards, and building long-term partnerships to drive sustainable infrastructure investment.

Team Europe brings together the European Union, its Member States, and their development finance institutions to deliver impactful, coordinated investments under the Global Gateway strategy. For this project, Team Europe includes the European Union, AFD (Agence Française de Développement), EIB (European Investment Bank), KfW (the German development bank), CDP (Cassa Depositi e Prestiti, Italy’s national promotional institution), and PROPARCO, the private sector arm of AFD that focuses on financing sustainable private investment in developing and emerging markets.

EU-Vietnam partnership

Through Global Gateway, the European Union and Vietnam are working together to boost sustainable, green infrastructure, and accelerate the green transition, in particular with the Just Energy Transition Partnership (JETP). We are building skills and fostering growth, while safeguarding the environment. The EU’s financial commitment for 2021-2027 is at least €293 million and the EU, EIB, and the Member States, contribute over €2.8 billion to the JETP. Additional support at regional level, focuses on the green transition and sustainable connectivity, in particular support to electricity connectivity with the ASEAN Power Grid. 

Global Gateway Forum

The Global Gateway Forum brings together leaders from the European Union and across the globe, alongside the private sector, civil society, thought leaders, financial institutions and international organisations to promote sustainable investment worldwide.

Global Gateway

Global Gateway is the EU’s positive offer to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems. Through a Team Europe approach, it aims to mobilise up to €300 billion in investments by 2027, closing the global investment gap and creating lasting links rather than dependencies.