​This report summarising findings from the application of a diagnostic tool, is as a first step supporting governments and other stakeholders seeking to design interventions to mobilise private finance for climate-compatible development (CCD). Using this diagnostic tool in Viet Nam’s water and sanitation sector allowed us to make two distinct sets of findings that are useful for actors who want to mobilise private climate finance.

The first set of findings emerges from the available data and information, through which we can identify opportunities for the Vietnamese government and development partners to modifying existing incentives and develop new tools to scale up climate-compatible investment; and where there are gaps in sources of capital that both public and private investment might fill. The second set of findings is around data gaps: unfortunately, owing to the absence of granular information and discrepancies in the definitions and categories in international and national datasets, there are challenges in understanding the impact of the country’s existing incentives on historic investment.

We aim to apply this methodology in a number of additional countries and sectors, with the goal of identifying additional opportunities to mobilise private climate finance, including through improved transparency of private investment data in climate-relevant sectors.

Nella Canales Trujillo, Vu Xuan Nguyet Hong and Shelagh Whitley