UNIDO, Vietnam launch preparatory phase of cement decarbonization financing project

United Nations Industrial Development Organization has partnered with Vietnam's Ministry of Construction to launch the detailed preparatory phase of a project aimed at mobilizing finance and enabling policies to decarbonize the country's cement industry, UNIDO said in a statement March 16.

The preparatory phase was launched through an inception workshop held at the Vietnam Institute for Building Materials, bringing together public- and private-sector stakeholders to start structured discussions on financing, technology and policy measures needed for a low-carbon transition in cement, UNIDO said.

Vietnam's cement sector is the world's third largest and accounts for about 16% of national greenhouse gas emissions, making it central to achieving the country's updated Nationally Determined Contribution and its 2050 net-zero commitment, according to the statement.

The project, titled Financing Solutions for the Decarbonization of Viet Nam's Cement Industry, is funded by the Mitigation Action Facility and implemented by UNIDO with partners including the International Finance Corp., the Low Carbon-Based Construction Association, the Global Cement and Concrete Association, Guidehouse Germany GmbH and Agence Francaise de Developpement, UNIDO said.

The program is designed to address a range of barriers, including financial, technical, structural, regulatory and behavioral constraints, that have slowed the adoption of lower-carbon cement production, according to UNIDO.

The work was developed with the close involvement of the Vietnam Institute for Building Materials and the Vietnamese Cement Association, and was supported by the ministries of construction, agriculture and environment, and industry and trade, the statement said.

As part of the effort, UNIDO said the project will establish a tailored financial mechanism intended to de-risk private-sector investment and accelerate the uptake of decarbonization solutions, including limestone calcined clay cement, supplementary cementitious materials and waste heat recovery systems.

In parallel, the project will support an enabling framework covering a national decarbonization roadmap, standards for low-clinker cement, carbon management tools and green public procurement, according to UNIDO.

Hoang Huu Tan, deputy director general representing the Ministry of Construction, said the project was an important step toward helping Vietnam meet climate commitments through modern technologies, improved efficiency and an enabling policy environment.

Rasha Abdrabu, an industrial development officer at UNIDO, said the initiative aims to embed decarbonization solutions into Vietnam's financial, technical and policy systems so that changes become scalable and self-sustaining, while creating a business case for low-carbon cement.

UNIDO said the project is expected to support Vietnam's broader climate and energy transition agenda, including the Vietnam Just Energy Transition Partnership, and could be replicated across the cement sector and downstream construction industries.

On completion, the program is expected to strengthen the financial ecosystem for industrial decarbonization, enhance technical capacity across government and industry, and deliver a comprehensive enabling framework for a sustainable transition to low-carbon cement production, according to UNIDO.

Le Thi Thanh Thao, UNIDO's country representative, said UNIDO remained committed to supporting Vietnam's industrial decarbonization efforts and the cement sector's transition, in line with national climate goals and development ambitions.

Platts, part of S&P Global Energy, assessed cement clinker FOB Turkey at $45.50/metric ton on March 12, up 50 cents/mt week over week.