On the afternoon of December 1 (local time), in Dubai, on the occasion of the World Climate Action Summit within the framework of the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), Prime Minister Pham Minh Chinh attended the Ceremony to announce the Resource Mobilization Plan to implement the Political Declaration on the establishment of the Just Energy Transition Partnership (JETP) with the International Partnership Group, including the European Union (EU), the United Kingdom of Great Britain and Northern Ireland, the United States, Japan, Germany, France, Italy, Canada, Denmark and Norway (abbreviated as IPG).
The JETP Declaration was adopted by Vietnam and IPG members within the framework of the Summit to celebrate the 45th anniversary of ASEAN-EU relations in Brussels, Belgium in December 2022. Also attending was the President of the European Commission (EC) Ursula von der Leyen.
Prime Minister attends the Ceremony to Announce the Plan to Mobilize Resources to Implement JETP
Through JETP, international partners help Vietnam improve policies, transfer technology, and provide financial support for a just energy transition; attract investment in renewable energy development, improve energy efficiency, and upgrade grid infrastructure; develop skills and capacities needed for a just transition through education and vocational training; and increase private sector participation.
International partners will also assist Vietnam in developing a renewable energy center and forming a renewable energy industry; promoting carbon storage, capture and utilization, manufacturing energy storage equipment and batteries, producing green hydrogen, and developing offshore wind power.
The partners commit to mobilizing an initial $15.5 billion in resources over the next three to five years to address Vietnam’s urgent, catalytic need for a just energy transition.
Of this, $7.75 billion is committed by the IPG Group with more attractive borrowing terms than the current capital market. The Glasgow Finance Alliance for Net Zero Emissions (GFANZ) commits to mobilizing at least $7.75 billion in private finance to directly support businesses through investments from corporations and international businesses.
JETP is one of the solutions to help Vietnam access the necessary resources to effectively implement a low-carbon, climate-resilient development roadmap in the global energy transition effort; at the same time, develop new economic opportunities to support Vietnam in realizing its green transition goals, towards a net zero emission future.
To implement the JETP Declaration, on August 31, 2023, the Prime Minister issued Decision No. 1009/QD-TTg approving the JETP Implementation Project. According to the JETP Declaration, Vietnam needs to coordinate with international partners to develop a Resource Mobilization Plan to implement JETP.
The Prime Minister has established the JETP Implementation Secretariat, headed by the Minister of Natural Resources and Environment, with deputy heads being Deputy Ministers of the Ministries of Natural Resources and Environment, Planning and Investment, Industry and Trade, and Finance, and members including representatives of relevant ministries and branches.
The JETP Secretariat has been actively promoting the implementation of the JETP Declaration, especially the development of the JETP Resource Mobilization Plan. The plan sets out a roadmap to achieve the goals of a just energy transition, the principles and criteria for prioritizing project selection and mobilizing the necessary financial resources to implement JETP.
Based on Resolution No. 55-NQ/TW of the Politburo on the orientation of Vietnam's National Energy Development Strategy, the content of the Nationally Determined Contribution, the National Power Development Plan and the National Energy Master Plan for the period 2021 - 2030, with a vision to 2050, the JETP Implementation Project and proposals from domestic and international partners, the resource mobilization plan sets out a list of projects and tasks to mobilize finance from IPG partners, the Glasgow Financial Alliance for Net Zero Emissions (GFANZ) and other donors.
The financial resources committed by partners to mobilize currently represent only a small part of the total needs to implement a just energy transition in Vietnam, and will continue to mobilize and use budget resources and mobilize from the private sector.
The resource mobilization plan focuses on 8 groups of tasks:
- Perfecting institutions and policies to promote energy transition.
- Promote the conversion of coal power to clean energy.
- Developing industrial ecosystem and renewable energy services.
- Use energy economically and efficiently.
- Upgrade the power transmission and distribution system, accelerate the roadmap for building smart power systems, and develop energy storage systems.
- Green energy conversion, reducing greenhouse gas emissions in the transportation industry.
- Innovation, development and technology transfer.
- Ensure fairness.
Projects and tasks will continue to be reviewed, updated and completed by the Secretariat, JETP Implementation Support Working Groups and partners.
The resource mobilization plan announced at COP28 is a new milestone in Vietnam’s efforts to achieve the goal of developing clean energy, moving towards a net zero emission future and sustainable development. International cooperation and commitment from partners will be key to achieving this goal.
Speaking at the ceremony, Prime Minister Pham Minh Chinh emphasized that this is a great effort and support from G7 countries for Vietnam. Since the COP26 Conference, the world situation has been complicated in terms of geopolitics, climate change and related issues.
For Vietnam, since COP26, Vietnam has done 12 things: Building a climate change response strategy, a green growth strategy; Sustainable energy development planning; Power Plan VIII associated with contributing to solving wind and solar power, reviewing national voluntary contributions NDC; establishing a Secretariat to support the implementation of JETP, building a plan to implement 1 million hectares of high-yield but low-emission rice; announcing the JETP implementation plan; building a plan for the industry and renewable energy sector; building a renewable energy-related ecosystem related to resources and facilities; building institutions; building the Electricity Law to change towards green development; building a Decree on direct electricity purchase and sale for self-production and self-consumption and handling previous problems with renewable energy in the spirit of harmonious benefits and shared risks.
The partners commit to mobilizing an initial $15.5 billion in resources over the next three to five years to address Vietnam’s urgent, catalytic need for a just energy transition.
The Prime Minister emphasized that Vietnam believes that climate change is a global, all-people issue, so there must be a global, all-people approach; we must call for international solidarity and multilateralism, no country is safe if another country is threatened. Vietnam always puts the people at the center and the subject, all policies must be directed towards the people, leaving no one behind.
The Prime Minister suggested that Vietnam is a developing country with a transitional economy, modest economic scale, large openness, and limited resilience to external shocks, while Vietnam must fulfill its commitments as a developed country.
Therefore, Vietnam calls on the international community to support 5 issues: financially, we hope you will help with 15.5 billion USD as committed to JETP; provide technology to develop the renewable energy industry; help Vietnam train human resources to serve the renewable energy industry; help with advanced management; train human resources.
Vietnam commits to implementing open mechanisms and policies, smooth infrastructure, and smart management; continuing efforts to reform administrative procedures, hoping that European businesses will continue to invest in Vietnam. The Vietnamese Government commits to ensuring the legitimate rights and interests of foreign investors, ensuring that businesses operate profitably and develop.
The Prime Minister announced that Vietnam's macro economy remains stable, with steady growth, inflation and budget deficit under control; major balances are ensured... This proves that Vietnam still has great room to promote development in the coming time.
European Commission President Ursula von der Leyen stressed that maintaining a 1.5 degree Celsius reduction cannot be achieved by any country alone. The relationship with Vietnam is a great example of this work. Vietnam and the EU have committed to reducing net emissions to zero. Partner groups have pledged to mobilize 15.5 billion USD.
"Today we are one step closer. We are pleased to support Vietnam's mobilization plan to significantly reduce emissions. Energy must be affordable and accessible to all. Currently renewable energy accounts for 36%, gradually moving towards 47%, the plan is built on the requirements of the Vietnamese economy, using wind energy, more importantly helping the Vietnamese people have the necessary foundation and skills.
The transition must be fair, successful for all, leaving no one behind. It is possible. We are seeing trends in all regions moving away from fossil fuels.
This is the result of COP28 but still maintains economic growth, bringing a better, healthier, and stronger life to everyone in the world. Vietnam can count on the EU's support "- President of the European Commission Ursula von der Leyen emphasized.
The UK Secretary of State said: "This plan is a big goal, helping to unlock the capital that Vietnam needs. We are determined to make this a success; believe that the JETP model is successful; proud to help Vietnam implement the plan. This helps us to be effective with our capital. Public capital is not enough to carry out the transition process, the JETP model can help to do this.
Vietnam is a suitable destination for these investments. Large corporations are shifting production to Vietnam. Vietnam is not only an attractive market for renewable energy such as wind and solar power. The JETP model is fair, we cannot demand that countries completely eliminate carbon emissions and quickly switch to clean energy. That is a fair energy transition."
At the end of the ceremony, in a private discussion with EC President Ursula von der Leyen, Prime Minister Pham Minh Chinh expressed his strong belief that this mobilization plan will be a great success; at the same time, he hoped that the EC President would actively support Vietnam in this matter as well as urge the remaining EU member states to quickly ratify the Vietnam - EU Investment Protection Agreement (EVIPA) when two-thirds of the member states have already approved it.
The Prime Minister also hoped that the EC would acknowledge Vietnam’s efforts in combating illegal, unreported and unregulated (IUU) fishing, thereby removing the EC’s “yellow card”; and affirmed that Vietnam would continue to improve the cooperation mechanism with the EU to implement the JETP.
For her part, EC President Ursula von der Leyen strongly expressed her support for Vietnam, believing that this Plan will be a great success.
At the ceremony, Prime Minister Pham Minh Chinh presented the Resource Mobilization Plan to implement JETP to President of the European Commission Ursula von der Leyen and the UK Secretary of State.
Vu Khuyen/VOV
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