Vietnamese firms engage in Net Zero race

Vietnam has scrapped a combined 7,800 MW to be generated by coal-fired power stations (Photo: doanhnghiepkinhtexanh.vn)

Hanoi (VNA) - Vietnam’s strong commitments in climate change adaptation towards achieving net-zero emissions by 2050 announced at the UN Climate Change Conference (COP26) is considered a cornerstone for calculations of renewable energy investors.

According to the Green Innovation and Development Centre (GreenID), a non-profit organisation which promotes sustainable development in Vietnam, the country scrapped a combined 7,800 MW to be generated by coal-fired power stations of Quynh Lap 1 and 2 in Nghe An, Vung Ang 3 in Ha Tinh and Long Phu 2 and 3 in Soc Trang. 

On the other hand, Vietnam has increased the capacity of wind power, especially offshore wind power. 

A wind farm in Ninh Thuan province (Photo: VNA)

Ma Khai Hien, Director of the Energy Conservation Research and Development Centre (Enerteam) specialising in energy efficiency and conservation, said in addition to increasing the percentage of renewable energy and reducing the rate of fossil fuel use in electricity production, energy saving is another solution. Vietnam holds huge potential for energy saving, particularly in cement and ceramics production, thermal power plants, commercial building and agricultural processing.

To realise the set target of increasing renewable energy coverage in line with sustainable development, due attention must be paid to the study of modern technology in the energy field, such as storage and transmission systems and digital transformation.

In the net zero race, those who respond with a rapid and comprehensive approach will gain the upper hand. The race is viewed as both a responsibility and challenge for businesses as first comers will be pioneers and gain a foothold amid changes in consumers’ behaviours, technologies and markets. 

GreenID Director Nguy Thi Khanh said her centre is working with relevant agencies to set up an alliance with a focus on achieving net zero. 

As Vietnam may need between 147 and 221 billion USD to realise the set target in the 2022-50 period, support from international organisations, private firms and stakeholders of the carbon market is vital.

Companies of all sectors in Vietnam hoping to reduce greenhouse gas emissions can join the alliance, she said, adding that it will support firms to find resources in terms of finance, technology and market as well as boost their prestige, brand and cooperation chances via a network of businesses and experts.

The alliance is scheduled to debut in the first quarter of this year and a survey on demand and capacity of firms regarding net zero will be carried out in March./.