With the support of international partners, Vietnam is striving to achieve its goal of achieving emissions neutrality by 2050. The Just Energy Transition Partnership (JETP) is one of the important solutions to help Vietnam achieve its goal of reducing greenhouse gas emissions and implementing the Power Development Plan VIII.
On December 14, 2022, representatives of Vietnam and G7 countries, along with development partners the European Union, Norway, and Denmark, adopted a political declaration establishing JETP to support Vietnam in transitioning from fossil energy to renewable energy, reducing net emissions to zero by 2050.
The initial program will mobilize about $15.5 billion from the public and private sectors over the next three to five years, a source of finance that represents only a small part of Vietnam’s investment needs.
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Vietnam wants to learn from the experiences of countries around the world to implement JETP and energy transition. Photo: Tuoi Tre[/caption]According to Deputy Minister of Natural Resources and Environment Le Cong Thanh, the Prime Minister of Vietnam has approved the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (Power Plan VIII) and the National Energy Master Plan for the 2021-2030 period, with a vision to 2050. In which, the active and effective implementation of the JETP Declaration is identified as one of the important solutions for the equitable energy transition in Vietnam.
Through JETP, Vietnam hopes to create a framework for international partners to help Vietnam improve policies, transfer technology, and provide financial support for a fair energy transition; attract investment in renewable energy development, improve energy efficiency, and upgrade grid infrastructure.
Along with that, Vietnam also develops a renewable energy center and forms a renewable energy industry; promotes carbon storage and utilization, manufactures energy storage equipment and batteries, produces green hydrogen, and develops offshore wind power.
In 2023, Vietnam will establish the JETP Secretariat and will complete the Resource Mobilization Plan and identify/implement pilot transformation projects. To date, relevant ministries and sectors have had preliminary discussions with the International Partnership Group (IPG) to develop the terms of reference for the Secretariat and develop the Resource Mobilization Plan for JETP implementation.
These are important foundational works for the implementation of JETP in Vietnam. In addition, on August 31, 2023, Deputy Prime Minister Tran Hong Ha signed a Decision approving the JETP Implementation Project.
The project sets out 10 key tasks for ministries, sectors and localities to implement, including: Perfecting institutions and policies to promote energy transition; Promoting the conversion of coal-fired power to clean energy; Developing the industrial and service ecosystem for renewable energy; Using energy economically and efficiently; Upgrading the power transmission and distribution system, accelerating the roadmap for building smart grids and developing energy storage systems; Converting to green energy, reducing greenhouse gas emissions in the transport sector; Innovating, developing and transferring technology; Ensuring fairness in energy transition; Communicating and raising awareness; and Promoting international cooperation on equitable energy transition.
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Ms. Ramla Al Khalidi, UNDP Resident Representative in Vietnam. Photo: VNA[/caption]UNDP Resident Representative in Vietnam Ramla Khalidi affirmed that Vietnam’s success in charting a clear path towards a green, low-carbon and climate-resilient economy is not only essential for Vietnam’s prosperity, but also a test case to demonstrate the effectiveness of global collective action.
Over the past time, UNDP has supported the preparation of Vietnam's JETP Project and draft zero of the resource mobilization plan.
“We look forward to receiving guidance, inputs and contributions from relevant Government agencies, IPG members and partners to develop a comprehensive and feasible plan for implementation over the next 3-5 years,” said Ms. Ramla Khalidi.
According to Ms. Ramla Khalidi, the initial mobilization of $15.5 billion in financial resources from IPG members and the Glasgow Finance Alliance for Net Zero (GFANZ) is very encouraging, but this is only a small part of the energy transition needs in Vietnam. The investments needed to develop energy by 2030 alone require $135 billion in capital.
To catalyze and unlock resources, she said policy reforms, risk reduction and innovative finance will be vital. The next step is to establish and operate Technical Working Groups in key ministries, to develop and implement their work plans for the next 3-5 years.
Minh Thai
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