In recent years, energy transition has become a focal point after Vietnam pledged to attain net-zero emissions by 2050 at the 26th Conference of Parties to the United Nations Framework Convention on Climate Change in Glasgow in November 2021. — Vietnam News
HANOI: The Just Energy Transition Partnership is offering significant opportunities for Vietnam to secure external financial support to achieve its ambitious climate objectives, including funds from the United Kingdom for green transition and sustainable development.
This will be further facilitated by the United Kingdom Vietnam Free Trade Agreement between the two nations.
In recent years, energy transition has become a focal point after Vietnam pledged to attain net-zero emissions by 2050 at the 26th Conference of Parties to the United Nations Framework Convention on Climate Change in Glasgow in November 2021.
A notable step was the endorsement of the National Power Development Plan (PDP8) in May, which is to phase out coal-fired power, bolster the growth of renewable energy and new energy sources, and cut greenhouse gas emissions.
The PDP8 offered significant opportunities for investment in green energy development in Vietnam, according to Pham Nguyen Hung, deputy director of the Electricity and Renewable Energy Authority under the Industry and Trade Ministry.
He said Vietnam would need around US$135bil for the development of power sources and transmission grids by 2030 to realise its ambitious power plan. It was estimated that another US$500bil would be required for the 2030 to 2050 period.
Under the PDP8, Vietnam would promote a just energy transition by increasing renewable sources to a proportion of 67.5% to 71.5% by 2050 and reducing greenhouse gas emissions to less than 170 million tonnes in 2030.
The World Bank estimated that Vietnam would need a cumulative US$368bil through 2040, or 6.8% of its gross domestic product, to pursue a climate-resilient and net-zero emissions development pathway.
The World Bank stressed that the commitments can and should be bolstered by the engagement of the domestic private sector and through external finance. — Viet Nam News/ANN
