Vietnam’s green commitment supports global fight against climate change

Over the past few decades, the energy sector has played a fundamental role in driving Vietnam’s rapid and inclusive economic growth.

Vietnam's commitment to embarking on an energy transition towards a cleaner, greener energy mix and more efficient use of energy is an important contribution, not only to the sustainable development of its economy but also to the global fight against climate change.

Delegates at the meeting.

Ambassador of the European Union to Vietnam Giorgio Aliberti gave the remarks at the 4 ^th High-Level Meeting of the Vietnam Energy Partnership Group (VEPG) took place today [January 24], as he co-chaired the meeting with Deputy Minister of the Ministry of Industry and Trade Dang Hoang An and Carolyn Turk – Country Director of the World Bank in Vietnam.

"The EU – like many other development partners that have gathered today – is here to provide support and expertise to make this energy transition happen while ensuring access to affordable energy for all and protecting Vietnam’s competitiveness at local, as well as international level," Aliberti said.

Ambassador of the European Union to Vietnam Giorgio Aliberti.

He said the EU will continue to provide financial support for the operation of the VEPG and will work with the Ministry of Industry and Trade on a roadmap for the long-term financial sustainability of the partnership, including strategies to raise additional, public, private, and development partners funds to sustain its operations.

“I am confident that the new structure of the VEPG will continue to provide a useful and unique platform to coordinate dialogue, concrete actions, and inputs to fulfill Vietnam's vision of its energy transition," Aliberti said.

The event was organized in a hybrid format, allowing the participation of more than 150 delegates representing a broad range of energy sector stakeholders, such as ministries, sectoral and central agencies, ambassadors, development partners, academia, NGOs, as well as private enterprises operating in the energy sector.

This year's High-Level Meeting looked back at the achievements and positive contributions of the VEPG over the last four years of operation as a high-level policy dialogue platform connecting the Vietnamese Government with development partners and stakeholders to promote the development of Vietnam’s energy sector.

An important highlight was the introduction of the five new technical working groups including Power Sector Strategic Planning, Renewable Energy, Grid Integration and Grid Infrastructure, Energy Efficiency, and Energy Market.

At the event, the partnership also adopted the new slogan of the VEPG: "Together, delivering the sustainable energy transition in Vietnam!”. The new slogan affirms VEPG’s goal and ensures coherent and complementary cooperation between energy sector stakeholders, to provide effective and efficient sector support and contribute to key policy-making processes that shape Vietnam's energy transition.

In a high-level thematic panel discussion, delegates from renowned organizations actively exchanged ideas around the Power Development Plan VIII under the Government's direction on sustainable energy transition, as well as the results and impacts of the 26th United Nations Climate Change Conference (COP26) on the orientation of Vietnam’s energy sector.

International experience and recommendations were shared to remove technical and investment bottlenecks for the sustainable energy transition in Vietnam.

Dang Hoang An, Deputy Minister of the Ministry of Industry and Trade.

Dang Hoang An, Deputy Minister of the Ministry of Industry and Trade (MoIT), informed that it was assigned by the Government to develop the Power Development Plan VIII, closely following principal orientations set out in Resolution No. 55 of the Politburo, paying special attention to the major subjects related to the structure of the power sector, power sources, and synchronization with the development of the power system and infrastructure.

“Over the years, the Vietnam Energy Partnership Group has fulfilled its role as a high-level policy dialogue forum between the Government of Vietnam and international partners, connecting international support to promote the development of the renewable energy market in Vietnam," he said.

In 2021, VEPG has restructured its technical working groups, identified key topics tailored to the country’s urgent needs, as well as leveraged supporting resources, both domestically and internationally.

By cooperating with ministries, departments, sectors, and local and foreign partners, the VEPG will support the government in developing even stronger measures to reduce greenhouse gas emissions to achieve net-zero emissions by 2050,” he said.

Support for a greener, sustainable energy sector

Carolyn Turk, Country Director of the World Bank in Vietnam, also shared that over the past few decades, the energy sector has played a fundamental role in driving Vietnam’s rapid and inclusive economic growth.

In the coming decade, she said the energy sector needs to use less carbon – fossil fuel consumption that generates the largest amounts of greenhouse gas emissions among all sectors needs to be drastically reduced.

Carolyn Turk, Country Director of the World Bank in Vietnam.

"This must be implemented in a way to ensure that both the energy demand is met and the economic stability of industries is maintained. To achieve these goals, the World Bank looks forward to continuing our support for the Government of Vietnam in expanding the energy sector in a greener, more sustainable way,” Turk said.

2021 is the first year of implementation of the 13th Party Congress's Resolution, and the first year of implementation of Resolution No. 55-NQ/TW dated February 11, 2020, of the Politburo on the orientation of Vietnam’s National Energy Development Strategy to 2030 with a vision to 2045. In March 2021, the MoIT completed and officially submitted the Power Planning Project VIII to the Government.

In this context, Vietnam’s energy sector, in general, and the electricity sector, in particular, are facing many challenges. The Covid-19 pandemic is predicted to continue to be complicated, unpredicted climate change, and natural disasters are becoming more frequent and devastating.

All the while, the country will need to focus on driving forward the sustainable energy transition, ensuring energy security, sufficient electricity supply, investment and development in the energy sector, and an overall orientation towards green growth.

During COP 26, Prime Minister Pham Minh Chinh confirmed Vietnam’s willingness to develop and implement stronger measures to reduce greenhouse gas emissions with its resources, together with the cooperation and support of the international community, both in terms of finance and technology transfer, including the implementation of mechanisms under the Paris Agreement to reach net-zero emissions by 2050.

To achieve this goal, it is required all energy sector stakeholders need to work hand in hand to ensure a sustainable transition, towards a green, circular, people-centered economy, leaving no one behind.