Leaders from Vietnam and the International Partners Group, including the European Union, the United Kingdom, France, Germany, the United States, Italy, Canada, Japan, Norway and Denmark on December 14 have agreed a Just Energy Transition Partnership (JETP).

Representatives of Vietnam, the UK and EU in Brussels, Belgium. Source: UK embassy in Vietnam

The JETP will mobilize an initial USD 15.5 billion of public and private finance over the next three to five years to support Vietnam’s green transition.

“Today, Vietnam has demonstrated leadership in charting an ambitious clean energy transition that will deliver long-term energy security,” US President Joe Biden said. “The US is proud to be a partner in this effort.”

“Vietnam is a dynamic, emerging economy at the heart of Southeast Asia,” said UK Prime Minister Rishi Sunak. “The investment we are making today means the country can cut its emissions while simultaneously creating new jobs and growth. Together, we will deliver a cleaner, greener future for Vietnam and our planet.”

The partnership will support Vietnam in working towards a number of ambitious new targets: bringing forward the projected peaking date for all greenhouse gas emissions in Vietnam from 2035 to 2030; reducing peak annual power sector emissions by up to 30%, from 240 megatons to 170 megatons, and bringing forward the peaking date by five years to 2030.

At the same time, limiting Vietnam’s coal capacity to 30.2 gigawatts down from a current planning figure of 37 gigawatts; and accelerating the adoption of renewables so that renewable energy accounts for at least 47% of electricity generation by 2030, up from the current planned generation share of 36%.

The successful delivery of these ambitious targets will result in around 500 megatons (0.5 billion tonnes) of emissions saved by 2035.

Initial contributions to the Vietnam JETP include USD 7.75 billion in pledges from the IPG together with the Asian Development Bank and the International Finance Corporation. This is supported by a commitment to work to mobilise and facilitate a matching USD 7.75 billion in private investment from an initial set of private financial institutions coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ).

Over the next 12 months, Vietnam will work with the support of partner countries to develop and adopt the Vietnam JETP Resource Mobilisation Plan, which will enable the implementation of the JETP funding and strategy.

Illustrative image. Photo: VNA

Vietnam is the third country to launch a JETP, following the successful launch of the South Africa JETP at COP26 and the Indonesia JETP at this year’s G20 Leaders’ summit. As a rapidly growing economy, Vietnam’s JETP will demonstrate that economic growth can be decoupled from fossil fuel energy consumption.

The Vietnam JETP builds on the UK-launched G7 Partnership for Global Infrastructure and Investment (PGII), which aims to narrow the infrastructure investment gap in developing countries. G7 leaders agreed in June 2022 to move forward in negotiations with countries on JETPs, which are a core delivery mechanism of the PGII.

Ensuring the transition away from fossil fuels is ‘just’ lies at the center of the JETP. A just transition will not only help Vietnam meet climate goals but also secure a resilient and prosperous future for its people, reducing the impacts of pollution and supporting economic growth and new jobs. It is vital that the whole civil society is involved in the green transition at all stages and no one is left behind.

“I am delighted that we have sealed a new Just Energy Transition Partnership with Vietnam during this important week for EU-ASEAN relations,” said Ursula von der Leyen, president of the European Commission. “With investments from international partners, Vietnam can boost renewable energies and enhance its energy security and autonomy.”

Successful delivery of these ambitious targets will result in a cumulative reduction of around 200 megatons of greenhouse gas emissions by 2030, and a further 300 megatons by 2035, making a total of around 500 megatons or half a gigaton of cumulative emissions saved through the JETP out to 2035, with further savings beyond.

Resolution 36-NQ/TU Reasserts Marine Economy Development Based on Green Growth Sea economic expert Nguyen Chu Hoi emphasized the role of the sea in the socio-economic development strategy and the implemenation of Resolution 36-NQ/TU by developing ...

Vietnam Stresses Energy Transition for Climate Action at COP27 The 27th United Nations Climate Change Conference (COP27), formally the 27th United Nations Climate Change Conference of the Parties, begins on 6 November.

Energy Transition - Key Factor for Vietnam to Fulfill Climate Commitment: Minister Energy transition is a key factor for Vietnam to realise the goal of bringing the net gas emissions to zero by 2050 that it committed ...