UNIDO backs Vietnam's push for greener cement manufacturing

UNIDO backs Vietnam's push for greener cement manufacturing

A project to develop financing solutions for decarbonising Vietnam's cement industry has entered its detailed preparatory phase.

The United Nations Industrial Development Organization (UNIDO), in partnership with the Ministry of Construction, launched the phase through an inception workshop on March 13. The event convened key public and private stakeholders to begin structured dialogue on financing, technology, and policy measures needed to advance the sector's low-carbon transformation.

Vietnam’s cement sector is currently the third largest in the world and accounts for approximately 16 per cent of the country’s total greenhouse gas emissions, making its decarbonisation essential to achieving the updated Nationally Determined Contribution and the 2050 net-zero commitment.

Funded by the Mitigation Action Facility and implemented by UNIDO in collaboration with international partners including the International Finance Corporation, the Low Carbon-Based Construction Association, the Global Cement and Concrete Association, Guidehouse Germany GmbH, and Agence Française de Développement, the scheme aims to unlock transformative change by addressing financial, technical, structural, regulatory and behavioural barriers across the cement sector.

It was developed in close involvement of the Vietnam Institute of Building Material and Vietnamese Cement Association, and supported by Ministries of Construction, Agriculture and Environment, and Industry and Trade, ensuring that it is designed to meet the local needs.

To this end, the project will establish a tailored financial mechanism to de-risk private-sector investment, enabling the uptake of decarbonisation solutions such as limestone calcined clay cement, supplementary cementitious materials and waste heat recovery systems. In parallel, the initiative will support an enabling framework that includes a national decarbonisation roadmap, standards for low-clinker cement, carbon management tools and green public procurement.

Hoang Huu Tan, deputy director general, representing Ministry of Construction said, “This undertaking marks an important step towards ensuring that Vietnam can achieve its climate commitments through modern technologies, improved efficiency and an enabling policy environment. We welcome UNIDO and our international partners in supporting this critical transition.”

During the workshop, participants reviewed the policy and regulatory landscape, explored technical innovation pathways and discussed financial solutions that can accelerate sectoral decarbonisation in the country.

Rasha Abdrabu, industrial development officer at UNIDO, said, “This initiative is designed to demonstrate viable decarbonisation solutions and embed them into Vietnam’s financial, technical and policy systems, ensuring change becomes scalable and self-sustaining. Through strong partnership with national institutions, industry and financial actors, we aim to create a clear business case for low-carbon cement and position Vietnam as a regional leader in green industrial transition.”

The venture is expected to bolster Vietnam’s broader climate and energy transition agenda, including the Vietnam Just Energy Transition Partnership, and has strong potential for replication across the country’s cement sector and downstream construction sectors. Upon completion, it will strengthen the financial ecosystem for industrial decarbonisation, enhance technical capacity across government and industry and deliver a comprehensive enabling framework for a sustainable transition to low-carbon cement production.

Le Thi Thanh Thao, UNIDO country representative, highlighted UNIDO’s role in supporting Vietnam’s industrial decarbonisation, “UNIDO remains fully committed to supporting Vietnam in this transition towards inclusive and sustainable industrial development in general, and decarbonisation of the cement sector in particularly, in line with the country’s climate goals and broader development ambitions.”

VIR