EAAIF backs Vietnam’s CME Solar in second Asia investment

The EAAIF provides long-term public and private debt for “transformative” infrastructure projects. The blended finance fund has invested $20 million in Vietnamese solar solutions provider CME Solar to build a pipeline of commercial and industrial rooftop solar projects in the country.

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The investment is EAAIF’s second investment in Asia since it expanded its mandate to the region in October (for background on commercial and industrial solar, see, “Commercial lenders wake up to Africa’s fastest-growing solar sector”). The funding is expected to help CME Solar double its portfolio of projects to 260 megawatts of peak energy capacity.

Earlier, EAAIF co-invested in one of Asia’s first sustainable aviation fuel production plants, with a $20 million loan for Pakistan’s Safco Ventures (see, “Sustainable aviation fuel project in Pakistan snags $86 million”). 

Just transition

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The Vietnamese government last year gave the go-ahead for local companies to directly purchase energy from private renewable energy producers. “The transition of Vietnam’s manufacturing sector to solar energy will significantly reduce carbon emissions in the country while continuing to support the sector’s green growth and economic dynamism,” said Esther Chan of Ninety One, which manages EAAIF.

Vietnam’s rise as a global manufacturing hub for everything from Nike sneakers to Apple iPhones has caused a surge in the country’s use of coal, which makes up nearly half of its power generation. Vietnam has pledged to increase renewable energy to 39% of its energy mix by 2030, but a US-backed Just Energy Transition Partnership to phase out coal has lagged.