People at the report launch. (Photo: The Embassy of Denmark in Vietnam)

The Vietnam Energy Outlook Report - Pathways to Net Zero (EOR-NZ) released on June 19 said that to achieve the 2050 target, Vietnam's CO2 emissions should peak in 2030 and the green energy transition needs to happen urgently and at a faster pace than previously.

With enormous potential for solar power, onshore and offshore wind power, Vietnam is well positioned to transform its energy sector from fossil fuels to renewable energy and leverage its national resources. The report shows how Vietnam through the expansion of renewable energy, along with electrification of the industry and transport sectors, can secure a cost-efficient green transition and reach its target of net-zero emissions by 2050, while reducing Vietnam’s dependence on energy imports.

According to the report analysis, an additional 56 gigawatts of renewable energy (17 GW onshore wind power and 39 GW solar power) need to be added by 2030 if Vietnam is to stay on track for carbon peak in 2030 and climate neutrality by 2050.

The report is the fourth in a series of outlook publications under the Danish - Vietnamese Energy Partnership Programme, a long-term partnership between Denmark and Vietnam on the green energy transition. The report presents scenarios for the development of the Vietnamese energy system towards 2050, focusing on analysing realistic pathways for Vietnam to achieve its net-zero commitment by 2050.

The report delivers a clear message that the most beneficial and cost-effective way to support Vietnam’s sustainable growth is through a massive expansion of solar and wind power, as well as the electrification of transportation and industry. It is critical to accelerate the green energy transition in Vietnam now to avoid unnecessary costs.

Kristoffer Böttzauw, Director General of the Danish Energy Agency, said that Vietnam and Denmark have ambitious climate goals. The report is a result of the two countries' strong collaborative efforts addressing green transition and climate change.

The report shows that Vietnam boasts potential for renewable energy, and the green transition will drive economic growth and ensure energy security and sustainable development for society, he said.

In recent years, Vietnam has experienced strong economic growth and the growing economy has led to significant increase in energy consumption, as well as in carbon dioxide emissions. It is vital for Vietnam’s sustainable development that the country, being one of the fastest growing economies in Southeast Asia, is able to decouple economic growth and energy consumption and develop a more sustainable and green energy system by investing in renewable energy and energy efficient technologies, he noted.

Deputy Minister of Industry and Trade Nguyen Hoang Long said that projects and cooperation programmes between Vietnam and Denmark in recent times have supported Vietnam in ensuring energy supply for socioeconomic development and green and sustainable development of energy sector.

Vietnam always appreciates the support of the Danish Government and hopes that the two sides will continue to coordinate closely to more effectively implement energy cooperation programmes, Long said.

Danish Ambassador to Vietnam Nicolai Prytz said that to achieve its net-zero goal, Vietnam needs to take swift, robust and sustainable action. This will not only be critical in dealing with increasing energy demand but also in helping attract more foreign direct investment when access to renewables becomes more relevant in making investment decisions.

Denmark is committed to supporting Vietnam in this green transition, he affirmed.