Only three months are left for Vietnam to submit its Resource Mobilisation Plan (RMP) for the outline to achieve the ambitious Just Energy Transition Partnership (JETP) energy transition targets and mobilise the finance for it.

The plan is to be submitted to the International Partners Group (IPG) and the JETP Secretariat under the direction of the Ministry of Natural Resources and Environment (MoNRE)

A draft RMP has been introduced this month, which the MoNRE said will continue being updated many times before being approved by the government and then presented for endorsement, with administrative and technical support provided by the secretariat, and with additional assistance from the IPG where necessary.

Related working groups led by the ministries of planning and investment, industry and trade, and finance will support the process.

Just energy transition plan approaches next stage, illustration photo/ Source: freepik.com

Vietnam has been required to develop and publish the RMP by November to identify new investment requirements and opportunities for the development and implementation of wind, solar, transmission, energy efficiency, storage, electric vehicles, training, retraining and vocational support for employment among others.

It must also identify measures to facilitate the deployment of support and overcome barriers to related investment.

“The JETP Secretariat would like to receive proposals for projects to be included in the plan,” said MoNRE Deputy Minister Le Cong Thanh.

“These projects need to be consistent with the set of framework criteria to help Vietnam carry out a good implementation the Power Development Plan VIII and the National Energy Master Plan, in line with the priorities of Vietnam and its partners, and to ensure feasibility in terms of technologies and resources which need deploying.”

Projects which can generate spillover effects to promote the energy transition in Vietnam will be prioritised, Thanh added.

British Ambassador to Vietnam Iain Frew said, “The IPG is pleased to be entering the next phase of implementation, with preparation of the RMP now fully underway. This is an opportunity to set a path for realising Vietnam’s ambitions for a just energy transition in a way that boosts growth, supports national socioeconomic objectives, and strengthens energy security and competitiveness.”

Thomas Wiersing, chargé d’affaires a.i. of the EU Delegation to Vietnam, added, “The IPG stands ready to work in very close collaboration with all key ministries in Vietnam, as well as society at large including non-governmental organisations, state-owned enterprises, the private sector, research groups and more, so as to ensure a broad social consensus.”

The $15.5 billion JETP deal for Vietnam was agreed last December with the IPG, which includes the EU, the UK, various European nations, the US,

Canada, and Japan.

The third country to launch a JETP, Vietnam will receive support via the partnership to reach its commitment net-zero carbon emissions by 2050 through accelerating the decarbonisation of its electricity system by reaching a peak of no more than 170 metric tonnes of CO2 equivalent emissions from electricity generation by 2030; peaking coal-fired generation capacity at 30.2GW; and accelerating deployment of renewable energy to at least 47 per cent of electricity generation by 2030.

Over the next 3-5 years, the JETP will mobilise an initial $15.5 billion of finance to support Vietnam’s just energy transition, comprising $7.75 billion mobilised by the IPG and other public finance institutions and $7.75 billion from Glasgow Financial Alliance for Net-Zero members.

The IPG has recognised the opportunities presented by an ambitious energy transition to attract significant new foreign direct investment in support of Vietnam’s vision to become a major low carbon manufacturing hub. The group has also underlined the economic and social opportunities of Vietnam’s low carbon transition, including the creation of quality jobs, local value chains, and attracting large-scale domestic and international private investments.

The IPG welcomed Vietnam’s swift and significant actions to implement its commitments made at in 2021, including legislation to reduce greenhouse gas emissions and adapt to climate change, promulgation of the National Climate Change Strategy to 2050 and a methane reduction plan, and its second updated Nationally Determined Contribution, while expecting further updates in line with the Glasgow Climate Pact.