Vietnam's Prime Minister Pham Minh Chinh said on Friday that his country has forged a plan with G7 governments and lenders for how it would use an agreed multi-billion dollar cash injection to reduce its coal use.

He announced the launch of the so-called Resource Mobilisation Plan, a critical milestone in landing the funds, alongside European Union partners on the sidelines of the COP28 international climate summit in Dubai.

Under an agreement reached last year with foreign investors, mostly from G7 members, Vietnam would receive $15.5 billion, largely in commercial loans at market rates, over three to five years to boost the use of renewables and cut dependence on coal.

The funding is part of a “Just Energy Transition Partnership” programme launched by wealthy nations to help poorer developing countries cut coal use quicker to fight climate change. Other countries with JETP agreements include South Africa, Indonesia, India and Senegal.

In 2020, coal accounted for 31% of Vietnam's installed capacity, and it plans to reduce that share to 20% by 2030.

(Reporting by Richard Valdmanis Editing by Frances Kerry)