Riding towards a greener future by United Nations Development Programme - United Nations Development Programme | UNDP - Exposure
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Riding towards a greener future

Lầu Minh Trí, a cab-share driver for Be in Ho Chi Minh City, used to spend a significant part of his earnings on gasoline. Each day, he would fill his tank, costing around 80,000 Vietnamese Dong (VND), roughly US$3.2. The noise and emissions from his gasoline-powered motorbike were part of his everyday routine. But things changed when Minh Trí switched to an electric vehicle (EV). 

"Switching to an electric motorbike has made a big difference," Minh Trí shares.

"Now, I only spend about 32,000 VND per day on electricity. Over a month, that's a huge saving of more than 1.5 million VND. The electric bike is much quieter and better for the environment." Minh Trí's transition to an electric motorbike has been smooth and practical. "With electric motorbikes, I don't have to worry about oil changes or high maintenance costs. Plus, battery swapping is quick and easy, taking only about two minutes to get back on the road." 

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UNDP is partnering with cab-share drivers and services to transition to electric motorbikes.

Nha Cảnh Tinh, a driver for ride-share service Grab, echoes similar sentiments. Every day, Cảnh Tinh used to spend around 70,000 to 80,000 VND on gasoline."Now, with an electric bike, I only spend about 20,000 VND to charge it fully, which takes me more than 200 kilometres.

It's a huge saving, and it's great not having to deal with oil changes." 

Minh Trí and Cảnh Tinh are among many drivers benefiting from the project "Scaling up E-mobility and Mechanisms for Promoting Investments in Green Projects in Viet Nam", funded by the Government of Japan. This initiative, part of UNDP's Climate Promise, aims to reduce greenhouse gas emissions by promoting the use of EVs across the country.

Since its inception, the project has facilitated the purchase of 371 electric vehicles, benefiting hundreds of drivers and promoting green transport. In cities like Hue, Tuy Hoa and Ho Chi Minh City, preferential loans have made it easier for 325 individuals to switch to electric motorcycles. These efforts have led to avoiding 865.83 tons of carbon dioxide equivalent emissions per year, significantly contributing to cleaner air and a healthier environment. 

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The project also focuses on raising public awareness through communication campaigns and events. In Thua Thien Hue, a competition encouraged residents to submit videos, articles and photos highlighting the benefits of green transport. This initiative fostered community engagement and creativity, showcasing the importance of sustainable transportation. In Phu Yen, electric vehicle cycling events and check-in stations encouraged the movement towards green transportation.

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Cycling events raise public awareness of the benefits of electric vehicles as part of a movement towards green transport.

Tran Thi Binh, Vice President of the Phu Yen Provincial Women's Union, explained the practical impact of the loan programme. "In reality, many women want to buy an electric bicycle but have financial difficulties and cannot spend a large amount of money at once to buy a bicycle. When the Women's Union implemented a loan for members to buy electric bicycles in early February 2023, many women registered for preferential loans. With an amount of 13 million to 20 million VND per household, an interest rate of 0.2 percent, and a loan term of 24 months, the capital source is very suitable for women in difficult circumstances who need to buy electric bicycles and electric motorbikes.

Some people use them to go to work, go to the market, or for their children to go to school." 
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Tran Thi Binh, Vice President of the Phu Yen Provincial Women’s Union, works to make electric vehicles accessible to women in difficult circumstances.

Nguyen Thi Bich Hien, living in Dong Xuan district of Phu Yen province, shared her experience:

"It has greatly supported me in my daily activities. My family is poor, and we recently had an accident, which made traveling even more difficult. My husband and I have a low income and are raising two school-age children.

The dream of buying an electric bicycle seemed out of reach, but with the loan from the Provincial Women's Union at a low interest rate, it has finally come true." 
Expanding use of electric vehicles can reduce greenhouse gas emissions and help to combat the climate crisis.

Expanding use of electric vehicles can reduce greenhouse gas emissions and help to combat the climate crisis.

The project aims to promote the green energy transformation of the transport sector and supports the development of an eligible carbon market under the Paris Agreement by establishing pilot emissions trading markets focused on electric mobility. The pilot projects, including deploying four electric garbage trucks and providing concessional loans for individuals to switch to electric motorcycles, have effectively demonstrated the benefits of electric vehicles.

These pilots addressed policy barriers, identified gaps that needed to be filled and provided practical evidence for policy formulation. They also facilitated partnerships among various stakeholders, including manufacturers, delivery and tourist companies, motorcycle taxi firms and individuals.

Nguyễn Hạnh Linh, Director of the Mobility Department at Grab Viet Nam, is enthusiastic about the project's impact.

"This initiative allows our partner drivers to transition to EVs easily. We hope to see this programme expand to other provinces, creating positive environmental changes nationwide."
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The preferential loans, averaging US$750, were implemented in three cities (Hue, Tuy Hoa and Ho Chi Minh). This fiscal incentive scheme aims to promoting e-mobility and encourage individuals to shift towards cleaner transport modes and low-emission vehicles. Individuals can access these loans with very low interest rates to purchase electric vehicles instead of gasoline-powered ones. 

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With electric motorbikes, drivers save substantially on fuel and maintenance, while enjoying a quieter, cleaner ride.

Minh Trí envisions a city where electric vehicles are the norm.

"If more people switch to EVs, we can create a significant shift towards a greener future. Together, we can build a city that prioritizes sustainability and works towards mitigating the effects of the climate crisis," he says.
Ho Chi Minh City and other cities are piloting fiscal incentive schemes to encourage a shift towards cleaner modes of transport.

Ho Chi Minh City and other cities are piloting fiscal incentive schemes to encourage a shift towards cleaner modes of transport.

Ramla Khalidi, UNDP Resident Representative, emphasized the broader significance of the project: "This project reduces dependency on fossil fuels because electric vehicles are more energy efficient than gasoline vehicles. Our reliance on fossil fuels will decrease, consequently improving energy security. This aligns with Viet Nam's Net Zero commitments and green growth goals. Additionally, it reduces air pollution, including particulates and greenhouse gases, benefiting public health, the economy and tourism.

Furthermore, electric vehicles generate less noise, contributing to healthier, more liveable cities." 
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Viet Nam is emerging as a leader in environmental stewardship and sustainable urban development.

Recognizing the urgency of addressing climate change, Japan has been a key supporter of this project as part of the Climate Promise initiative. Their involvement has been vital in advancing these efforts. Through collaboration with UNDP and other partners, the project has achieved substantial environmental benefits, aiding Viet Nam's transition to a sustainable and resilient future. 

Through the efforts of individuals like Minh Trí and Cảnh Tinh, along with the support of organizations like Grab and Be, Viet Nam is emerging as a leader in environmental stewardship and sustainable urban development. The positive impact of this project is felt across the country, inspiring further actions to combat the climate crisis and foster a greener, cleaner and more prosperous future for generations to come. 


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