International partners pledge 15.5 billion USD to Vietnam's energy transition

Hanoi (VNA) - International partners committed to mobilising an initial amount of 15.5 billion USD over the next 3-5 years to address Vietnam's just energy transition needs.

Through the Political Declaration on Just Energy Transition Partnership (JETP), adopted by Vietnam and the G7 and non-G7 countries last year, partners have committed to mobilising an initial amount of 15.5 billion USD over the next 3-5 years to address the Southeast Asian nation’s transition needs.

This information was recently announced at a consultation workshop discussing a draft resource mobilisation plan serving the implementation of the political declaration.

Co-organised by the Ministry of Natural Resources and Environment (MoNRE)’s Department of Climate Change and the United Nations Development Programme (UNDP), the event on August 11 attracted representatives of international partners, international organisations, the Glasgow Financial Alliance for Net Zero (GFANZ), businesses, non-governmental organisations (NGOs), ministries, sectors, experts, and scientists.

Speaking at the workshop, Deputy Minister of Natural Resources and Environment Le Cong Thanh stated that the declaration represents a joint effort between Vietnam and the International Partners’ Group (IPG), including Canada, France, Germany, Italy, Japan, the UK, the US, the EU, Denmark, and Norway, after over a year of negotiations.

Through the JETP, Vietnam aims to establish a framework for international cooperation to enhance policy development, technology transfer, and financial support for just energy transition. The goal is to attract investments in renewable energy development, improve energy efficiency, and upgrade power infrastructure.

Additionally, Vietnam plans to establish renewable energy centres and develop a renewable energy industry, promote carbon capture and storage, manufacture energy storage devices and batteries, produce green hydrogen, and expand offshore wind power.

By participating in the declaration, partners commited to mobilising funds to address Vietnam's just energy transition needs, including 7.75 billion USD from the IPG and at least 7.75 billion USD from the GFANZ.

The amount for the next phase could be higher if Vietnam effectively uses the initial funds and meets the conditions of international partners and financial regulations.

Thanh said the Secretariat for the implementation of the Political Declaration hopes to receive suggestions of projects for the JETP plan.

These projects should match the framework criteria to help Vietnam properly carry out the National Power Development Plan VIII and the national energy master plan. They should match the priorities of Vietnam and partners, and be feasible in terms of technology and resources so that they could be implemented immediately. Priority is given to projects that can help accelerate energy transition in the country, he noted.

From the partners' perspective, UNDP Resident Representative in Vietnam Ramla Khalidi stressed the importance of the success of Vietnam in outlining a clear roadmap towards a green, low-carbon, and climate-resilient economy. This is not only vital for the country’s prosperity but also serves as a test case to demonstrate the effectiveness of global collective action.

She also emphasised that the success of the energy transition process will depend on the ability to mobilise sufficient financial resources.

According to the UN official, the initial mobilisation of 15.5 billion USD from the IPG and GFANZ members is encouraging, but it only represents a small part of Vietnam's energy transition needs. The necessary investments to develop energy until 2030 already require 135 billion USD in capital. Therefore, to stimulate and unlock resources, policy reforms, risk reduction, and innovative financial reforms will play a crucial role./.