Hanoi (VNA) – The Ministry of Construction (MoC)and the German Cooperation Organisation (GIZ) on January 6 signed a Memorandum ofUnderstanding (MoU) on cooperation in developing the Vietnam Green Housing Programme,expected to save about 6.3 billion kWh of electricity over the next decade.

The document was inked by Ha Quang Hung, Deputy DirectorGeneral of the MoC’s Housing and Real Estate Market Administration (HREMA), andKia Fariborz, Director of the GIZ SIPA Programme.

The VGHP, implemented under the Programme for EnergyEfficiency in Buildings (PEEB) in Vietnam, aims to benefit the mid-incomehousing market through targeting the low-cost commercial housing segment. TheMoU focuses on enabling greenhouse gas (GHG) emissions mitigation in theresidential building sector.

Under the partnership, GIZ and HREMA will join hands todevelop and implement the Vietnam Green Housing Programme. A particular focusof the programme is on improving energy efficiency and reducing GHG emissions inthe affordable housing segment as per Vietnam’s commitment in its NationallyDetermined Contribution to the Paris Agreement on Climate Change.

Through the programme,the partnership aims to motivate private housing developers to move into themarket for energy-efficient and green buildings, and stimulate local commercialbanks to develop green financing products for energy efficient housing andgreen construction materials.

According to calculations, within 10 years after reachingthe target of the Green Housing Programme, the apartment buildings will saveabout 6.3 billion kWh of electricity, equivalent to 15.8 trillion VND.

This is a significant cost saving that will benefit the homebuyers if they use energy efficiently in the apartment, Hung said. In addition,in the short term, the programme will create a plentiful supply of low-costcommercial housing, thereby facilitating the people’s access to affordablehousing.

Fariborz, for his part, said, as an emerging economy,Vietnam is witnessing a sharp increase in demand for space and housingexpansion as a result of the rapid growth of the middle class.

There is huge potential in reducing GHG through improvingenergy efficiency in the housing sector so this partnership will contribute to thefulfillment of Vietnam’s goal of GHG reduction, he added./.