Credit: UNEP/Maxwell Gutteridge
21 Nov 2024 Story Climate Action

In Viet Nam, loans help bolster gender equality and fight climate change  

Credit: UNEP/Maxwell Gutteridge

Duong Khanh Ly, the founder of a tea cooperative in northeast Viet Nam, had a problem.  

Severe downpours would often soak tea leaves that had been left outside to dry, spoiling entire batches and cutting into the profits of the co-operative’s 15 female members.  

So, Duong approached CHIASE, a non-governmental organization and partner of the United Nations’ EmPower programme, which helps women become more resilient in the face of climate change. 

CHIASE supported the cooperative as it accessed a collateral-free, low-interest loan that members used to construct a solar-powered building for drying leaves and other agricultural products. Since then, production has surged, says Duong, a 33-year-old mother of two who lives in the Bắc Kạn region. 

Duong Khanh Ly stands in front of her cooperative’s solar powered drying facility
Courtesy of Duong Khan Ly

Launched in 2018, EmPower is led by the UN Environment Programme (UNEP) and UN Women. The effort is designed to tackle a problem many women face across the Asia-Pacific region: a lack of access to credit.  

The initiative works with banks to develop loan products that allow women and other marginalized groups to purchase renewable energy equipment and other clean technologies. That gear, which includes solar-powered water pumps and irrigation systems, also helps rein in emissions of planet-warming greenhouse gases. 

The first phase of EmPower benefited some 473 women-led micro, small and medium-sized enterprises (MSMEs), and the second phase, launched in 2023, is expected to support 1,600 women-led MSMEs. 

“This programme shows the transformative power that accessible and affordable financing can have on the lives of women,” says Dechen Tsering, the Acting Interim Director of UNEP’s Climate Change Division. “It also demonstrates that renewable energy is a viable alternative to fossil fuels, which is crucial at a moment like this.” 

Her comments follow a new report from UNEP that reveals the Earth is heading for a 2.6°C to 3.1°C rise in temperatures before century’s end, an increase that could prove catastrophic.  

This week, country representatives are in Baku, Azerbaijan for the UN Climate Change Summit (COP29), where, among other things, they will explore how to drum up financing for renewable energy projects, especially in the developing world.  

Efforts like EmPower, which enlist the private sector, are considered an important part of that push. UNEP’s recent Adaptation Gap Report found the world needs US$187-359 billion per year to adapt to climate change, financing that developing countries in particular, would be hard-pressed to marshal. 

On 20 November, COP29 featured a day devoted to the importance of gender equality in responding to the climate crisis, which weighs disproportionately on women and girls. 

In Viet Nam’s Bắc Kạn district, Duong’s community is doing all that it can to adapt to climate change. The new drying house sits atop a hill to safeguard it from floods. The building features a curved roof, similar to a greenhouse, and covers 10 square metres. The structure is made out of polycarbonate sheets and uses sunlight to generate heat, which dries tea leaves laid on orderly of racks. A small solar-powered fan provides electricity to ventilate the drying house.  

The setup is a dramatic improvement for the cooperative. Members used to dry tea leaves outside, forcing them to quickly collect the produce whenever rain threatened. They would also constantly flip tea leaves to ensure they were thoroughly dried, something they no longer need to do with the new drying house.  

“In the past, drying tea and bamboo shoots was very difficult. If it rained and the products couldn’t be collected in time it was all ruined,” says collective member Dang Thi Nga.  

Solar-powered drying house 
Credit: UNEP/Maxwell Gutteridge

The drying house has not only increased productivity but also the quality of the cooperative’s products, leading to higher incomes for the community, said Duong. The collective members also received training in production, business planning, online selling, and how to prepare for natural disasters. The co-operative is now planning to expand production, develop new products and register their tea for trademark protection.  

EmPower aims to mobilize US$20 Million in gender-responsive investment for renewable energy entrepreneurship in Viet Nam, Bangladesh, Cambodia, Indonesia and Philippines. The effort could potentially benefit more than 100,000 women.  

“The EmPower programme is showing that women can become more resilient to climate change and lead the push into a sustainable, equitable future,” said Tsering. 

 

UN Climate Change Conference   

The  29th session of the United Nations Climate Change Conference (COP29)  is being held in Baku, Azerbaijan, from 11 to 22 November. It aims to drive action on climate change by reducing emissions and halting global warming. You can follow live COP29 updates on  UNEP’s climate action feed.   

The Sectoral Solution to the climate crisis    

UNEP is at the forefront of supporting the Paris Agreement goal of keeping global temperature rise well below 2°C, and aiming for 1.5°C, compared to pre-industrial levels. To do this, UNEP has developed the Sectoral Solution, a roadmap to reducing emissions across sectors in line with the Paris Agreement commitments and in pursuit of climate stability. The six sectors identified are: energy; industry; agriculture and food; forests and land use; transport; and buildings and cities. 

EmPower: Women for Climate-Resilient Societies Programme 

Jointly implemented by UN Women and the UNEP with support from the Governments of Germany, New Zealand, Sweden and Switzerland, EmPower is dedicated to empowering women and marginalized groups to take the lead in building climate-resilient communities.