Identifying climate risks and developing safeguards

Context

The negative impacts of climate change, such as increasingly extreme weather, are threatening Viet Nam’s economic, environmental and social fabric. Storms in particular constitute a significant threat and are causing more floods and landslides as well as damage to infrastructure, such as power networks, water supplies, roads, bridges and dams. The country therefore has to strengthen its financial capacity so that it can deal with climate and disaster risks more effectively. As part of this it needs digital technologies that assess risks and appropriate financial instruments such as insurance schemes that protect critical infrastructure. Viet Nam also requires a regulatory framework for the financing of safeguarding against risks.

Objective

The institutional conditions have improved so that Viet Nam is able to assess, select and utilise financing solutions that protect its critical infrastructure against climate and disaster risks.

Approach

The project focuses on developing a digital information system that organises data relating to climate and disaster risks. It also provides support for the assessment of risks to critical infrastructure. At the same time it improves the regulatory basis so that Viet Nam can provide financial security against risks through insurance schemes, for example.

In this, the project works closely with Viet Nam’s Ministry of Agriculture and Rural Development (MARD) and Ministry of Finance (MoF).

Last update: February 2025