South Africa was the first country to adopt the JETP Declaration with development partners from the UK, US, France, Germany and the European Union at COP26. Indonesia, Vietnam and Senegal have joined the JETP with the International Partnership Group, and are developing implementation plans.
At the discussion session, those directly involved in the process of building and implementing JETP from 4 countries shared the progress, challenges of implementing JETP in each country and cooperation orientation during the implementation process.
South Africa began developing its Just Energy Transition Investment Plan after the adoption of the JETP Political Declaration, and will complete it one year later in October 2022, said Joanne Yawitch, Head of the South African JETP Secretariat. The plan identifies a need for US$98 billion in clean energy development and supports a long-term “just” transition; investment in green hydrogen infrastructure and electric vehicle manufacturing. South Africa needs another year to develop an action plan to implement the JETP Investment Plan.
A month ago, the International Partnership Group (IPG) released the Comprehensive Investment and Policy Plan (CIPP) for Indonesia’s JETP. The CIPP outlines a $97.3 billion investment need to achieve the goals of Indonesia’s JETP Political Declaration. Of this, $66.9 billion is for 400 projects that need to start by 2030. These projects will make a major contribution to achieving the net zero emissions target, focusing on phasing out and reducing coal power plants, developing renewable energy along the value chain, etc. The plan also outlines a framework for a just energy transition that will require a lot of resources to implement.
Vietnam's representative, Mr. Pham Van Tan, Deputy Director of the Department of Climate Change (Ministry of Natural Resources and Environment), said: Vietnam and IPG members have adopted the JETP Declaration in December 2022. Partners committed to mobilizing initial resources of 15.5 billion USD over the next 3-5 years to address urgent needs, catalyzing a just energy transition in Vietnam. Of which, 7.75 billion USD is committed by the IPG Group with more attractive borrowing conditions than the current capital market. The Glasgow Finance Alliance for Net Zero Emissions (GFANZ) committed to mobilizing at least 7.75 billion USD in private finance to directly support businesses through investments from corporations and international enterprises; of which 340 million is non-refundable support.
In 2023, Vietnam established the JETP Implementation Secretariat, headed by the Minister of Natural Resources and Environment; Deputy Heads are Deputy Ministers of the Ministry of Natural Resources and Environment, Ministry of Planning and Investment, Ministry of Industry and Trade, and Ministry of Finance. After its establishment, the Secretariat, together with international partners (IPG), developed and completed the JETP Resource Mobilization Plan, which was announced by Vietnam within the framework of the COP28 Conference.
The plan to mobilize resources to implement JETP identifies 250 investment projects that need to be implemented from now until 2030 and about 60 projects/project groups that need technical support, with implementation resources of nearly 200 billion USD by 2030. JETP resources supported by IPG will be used for breakthrough projects and create conditions to mobilize resources from domestic and foreign enterprises to implement energy transition. "Mobilizing resources to implement a fair energy transition in Vietnam is not limited to the partners participating in JETP but is open to all domestic and foreign investors, enterprises, and financial institutions and is implemented in accordance with Vietnam's regulations," Mr. Tan emphasized.
Ms. Yaye Catherine Diop, Head of the Energy Transition Department, Ministry of Petroleum and Energy of Senegal, said: Senegal started negotiating the JETP Political Declaration 1 year ago with the IPG, which includes France, Germany, Canada and the EU. With a commitment to support 2.5 billion USD (mostly loans and 150 million in non-refundable support) to support the new target of renewable energy accounting for 15.4% of total electricity production. According to Ms. Yaye Catherine Diop, the JETP negotiation process was easy because Senegal plans to increase renewable energy by 30% and the implementation of the JETP will contribute to achieving this goal. However, after signing the Political Declaration, mobilizing resources for implementation is not easy. It is expected that Senegal's JETP investment plan will be completed in June 2024. Existing projects in the portfolio can be implemented before the plan is approved.
The speakers all agreed that the level of non-refundable support from international partners for JETP implementation is still very low compared to the need to ensure equity in each country. At the same time, the completion of the JETP implementation plan is only the first step; countries will need to continue negotiating with each partner so that the resources for JETP implementation transferred to each country are used effectively, in accordance with JETP goals and ensuring the energy transition is equitable. The speakers also agreed to maintain regular communication channels with each other to exchange and learn from each country's experience in implementing JETP and at COP29 will continue to share with other developing countries what has been achieved and the challenges that need to be overcome in the JETP implementation process for other countries to refer to.
8 task groups to mobilize resources to implement JETP
Previously, on December 1, 2023, within the framework of COP28, Vietnam officially announced the Resource Mobilization Plan to implement the Political Declaration on the establishment of the Just Energy Transition Partnership (JETP) with the Group of International Partners, including the European Union, the United Kingdom of Great Britain and Northern Ireland, the United States of America, Japan, the Federal Republic of Germany, the French Republic, the Italian Republic, Canada, the Kingdom of Denmark and the Kingdom of Norway. The Resource Mobilization Plan focuses on 8 groups of tasks: (1) Perfecting institutions and policies to promote energy transition; (2) Promoting the conversion of coal power to clean energy; (3) Developing the industrial ecosystem and renewable energy services; (4) Using energy economically and efficiently; (5) Upgrading the power transmission and distribution system, accelerating the roadmap for building a smart power system, and developing an energy storage system; (6) Green energy transition, greenhouse gas emission reduction in the transport sector; (7) Innovation, technology development and transfer; (8) Ensuring equity. The projects and tasks will continue to be reviewed, updated and completed by the Secretariat, the JETP Implementation Support Working Groups and partners.
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