Prime Minister requests early submission of pilot mechanism for direct electricity purchase and sale

On the afternoon of July 14, Prime Minister Pham Minh Chinh - Head of the National Steering Committee for the Implementation of Vietnam's Commitments at the 26th Conference of the Parties to the United Nations Convention on Climate Change (COP26 Steering Committee) chaired the 4th meeting of the Steering Committee.

Concluding the meeting, the Prime Minister frankly pointed out that in implementing the tasks, there are still difficulties that need to be resolved, limitations that need to be learned from to do better, such as the construction and completion of a number of mechanisms and policies to prioritize green transformation and green development are still slow and not proactive, including regulations related to carbon credits, hydrogen energy, etc.

In addition, the negotiation, completion of mechanisms, policies, laws and the removal of difficulties and obstacles to mobilize social resources, especially from international partners, are still slow; the development of reports on equitable energy transition in each field has hardly been implemented because the issue is still new to ministries and branches; the awareness of a number of civil servants on green development is still limited...

The Prime Minister said that green development, energy transition, and emission reduction are inevitable and irreversible trends that Vietnam cannot stand outside of. They are also an opportunity to develop and restructure the economy in a green and sustainable direction. Green development must be sustainable, inclusive, and comprehensive, leaving no one behind.

Focus - Prime Minister requests early submission of pilot mechanism for direct electricity purchase and sale — Prime Minister Pham Minh Chinh (Photo: Nhat Bac).

At the meeting, the Prime Minister requested ministries and branches to promptly complete synchronous mechanisms, policies and legal documents to remove difficulties and obstacles, mobilize the participation of the whole society in implementing Vietnam's commitments at COP26; attract resources to respond to climate change and energy transition;

Encourage domestic and foreign organizations and individuals to participate in responding to climate change and energy conversion; encourage businesses to reduce greenhouse gas emissions, save energy, and develop environmentally friendly production models; allocate resources to effectively implement the requirements of the Steering Committee.

The Prime Minister requested ministries managing greenhouse gas emissions such as Industry and Trade, Construction, Transport, and Agriculture to urgently issue detailed documents on climate change response in accordance with the 2020 Law on Environmental Protection.

Issue a plan to reduce greenhouse gas emissions at the sectoral level in accordance with the provisions of Decree No. 06/2022; organize the assessment and inventory of greenhouse gas emissions of enterprises and facilities to attach responsibility for implementing emission reduction according to Vietnam's commitment at COP26.

The Prime Minister assigned the Ministry of Natural Resources and Environment to preside over and coordinate with relevant ministries and branches to develop a Decree regulating carbon credit management in accordance with the provisions of law on development and promulgation of legal documents or integrating amendments to Decree No. 06/2022, and submit it to the Government in the second quarter of 2024.

The Ministry of Natural Resources and Environment shall preside over and coordinate with the Ministry of Agriculture and Rural Development and relevant agencies to refer to the experiences of other countries, advise the Prime Minister to issue a Directive on forest carbon credit management in Vietnam to ensure the implementation of the Nationally Determined Contribution and the commitment to achieve net zero emissions by 2050.

Focus - Prime Minister requests early submission of pilot mechanism for direct electricity purchase and sale (Figure 2). — The Prime Minister requested the Ministry of Industry and Trade to soon develop a separate chapter on renewable energy in the amendment of the Electricity Law (Photo: Thu Huyen).

The Prime Minister assigned the Ministry of Industry and Trade to promptly complete and submit for promulgation a pilot mechanism for direct power purchase and sale (DPPA) between renewable energy power generators and large electricity users to accelerate equitable energy transition projects to implement Vietnam's commitments at COP26.

At the same time, issue regulations to encourage the development of distributed/rooftop solar power projects; complete the Hydrogen Production Strategy in Vietnam; propose and develop a separate chapter on renewable energy in the amendment of the Electricity Law.

The Ministry of Finance focuses on completing the Project on Developing the Carbon Market in Vietnam, submitting it to the Prime Minister for approval in July 2023; continuing to perfect mechanisms and incentive policies for green growth. The Ministry of Planning and Investment urgently develops criteria for green growth.

The State Capital Management Committee at Enterprises focuses on directing its affiliated corporations and groups to urgently implement the conclusions of the Government Standing Committee at the meeting on June 10, 2023, promote production and business activities, strongly promote digital transformation, enhance the application of science and technology, and innovation to truly become a driving force, creating a spillover effect in key industries and fields, especially the development of circular economy, green development, digital transformation, research and development of new energy such as hydrogen, wind power development, etc.

Source