The partners pledged to invest US$15.5 billion over the next three to five years to address Vietnam's urgent n...
The partners pledged to invest US$15.5 billion over the next three to five years to address Vietnam's urgent need for a just energy transition.
Prime Minister Pham Minh Chinh speaking at COP28. Photo credit: VGP
At COP28, Vietnam announced a resource mobilization plan to implement the Political Declaration establishing a Just Energy Transition Partnership (JETP).
This initiative is expected to help Vietnam carry out its policies, transfer technology, attract investment in renewable energy development, improve energy efficiency, upgrade power grid infrastructure, etc. to achieve ambitious emissions reduction targets.
Challenges of green capital
According to Deloitte, to achieve net-zero emissions by 2050, total global investment in the energy sector needs to reach $5 trillion to $7 trillion per year. Today, however, the world invests less than $2 trillion a year in the energy transition
When inflation is high, economic growth slows globally, and conflicts around the world develop in unpredictable ways, the budget allocated to green development is more or less affected.
Deloitte argues that failure to close the financing gap could cost the global economy dearly and reduce the effectiveness of the transition to net-zero.
Therefore, international experts emphasize that to achieve net-zero, the world needs to invest wisely and identify areas of cost reduction. For example, 70% of global green investments are expected to be invested in developing economies by 2030.
Vietnam remains a bright spot
At COP28, Prime Minister Pham Minh Chinh continued to affirm that Vietnam will urgently build institutions, including drafting the oil and gas law, complementing the land law and the electricity law in the direction of supporting the creation and development of renewable energy.
Ben Backwell, CEO of the World Wind Energy Council (GWEC), said: "We welcome Vietnam's commitment to prioritizing wind energy for sustainable economic growth and large-scale renewable energy production."
Thomas Lingard, global head of sustainability at Unilever Group, said Vietnam's commitment to promoting renewable energy in manufacturing would be a factor that would help attract more international investment.
In order to achieve its goal of net-zero emissions by 2050, Vietnam should prioritize establishing a clearer framework, including the completion of the National Marine Spatial Plan, amending Decree 11/2021/ND-CP to allocate specific marine areas to the organization. exploitation and use of marine resources. In addition, Vietnam could consider establishing an inter-agency working group to simplify development procedures
With the strong renewable energy commitments and prospects Vietnam made at COP28, international investors, multilateral organizations, and financial institutions are all confident that Vietnam can become the leading hub of the region's renewable energy supply chain. both to promote the growth of the manufacturing industry and to support the country's overall green transition.
Via Petro Times