Viet Nam announces resource mobilization plan to implement JETP in Dubai

Dignitaries at the announcement ceremony include Prime Minister Pham Minh Chinh, Minister of Natural Resources and Environment Dang Quoc Khanh, Minister-Chairman of the Government Office Tran Van Son, Standard Chartered Chief Executive Bill Winters, and senior leaders of multinational corporations.

IPG comprises of the European Union (EU), the United Kingdom, the United States, Japan, Germany, France, Italy, Canada, Denmark, and Norway. The JETP Political Declaration was previously adopted by Viet Nam and IPG members at the Summit celebrating the 45th anniversary of Association of Southeast Asian Nations (ASEAN) – EU relations in Brussels, Belgium, in December 2022.

Through the JETP, international partners will support Viet Nam by facilitating policy enhancements, technology transfer, and financial support for a just energy transition, and mobilise investments to drive renewable energy development, improve energy efficiency, and upgrade grid infrastructure. Support will also be extended to develop the necessary skills and capacity for the just energy transition through technical vocational education and training and enhance private sector engagement, as well as establish a centre of excellence for renewable energy, advance the renewable energy industry and promote the application of Carbon Capture, Utilisation and Storage, in addition to catalysing the manufacturing of energy storage equipment and batteries, green hydrogen production, and development of offshore wind power.

Partners committed to mobilise an initial US$15.5 billion over the next three to five years to address urgent needs which helps catalyze the just energy transition in Viet Nam. Of this, US$7.75 billion is to be mobilised by IPG members, with more attractive loan conditions than the current capital market. 

The Glasgow Financial Alliance for Net Zero (GFANZ) committed to mobilise at least US$7.75 billion in private finance to directly support businesses through investments of international corporations and enterprises. 

The JETP is one of the solutions to help Viet Nam access the necessary resources to effectively transit to a low-carbon, climate-resilient development pathway, as part of the global energy transition, and at the same time, fostering new economic opportunities to support Viet Nam’s green transition towards a net zero emissions future.

To implement the JETP Political Declaration, the Prime Minister approved Decision No. 1009/QĐ-TTg dated August 31^st 2023, on the Scheme to implement Viet Nam’s JETP. According to the JETP Political Declaration, Viet Nam needs to coordinate with international partners to develop the Resource Mobilisation Plan to implement the JETP. 

Shortly thereafter, the Prime Minister established the JETP Secretariat, headed by the Minister of Natural Resources and Environment, with the Deputy Ministers of Natural Resources and Environment, Planning and Investment, Industry and Trade, and Finance appointed as the Deputy Heads. Members of the JETP Secretariat include representatives of relevant ministries and agencies.

The JETP Secretariat has strongly promoted the implementation of the JETP Political Declaration, especially the development of the Resource Mobilisation Plan to implement the JETP. The Plan sets out a roadmap to achieve the just energy transition goals, principles and criteria for project prioritisation and selection, and mobilization of necessary financial resources to implement the JETP.

Based on Resolution No. 55-NQ/TW of the Politburo on the orientation of Viet Nam's National Energy Development Strategy; the Nationally Determined Contribution (NDC); the Power Development Plan 8; the National Energy Master Plan for the period 2021 - 2030, vision to 2050; the JETP Scheme; and proposals from domestic and international partners, the Resource Mobilization Plan proposes project categories and tasks to mobilize finance from IPG members, GFANZ and other international partners. The financing committed by partners is currently only a small part of Viet Nam’s total need for a just energy transition. Financial resources will continue to be mobilized and utilized from the state budget and from the private sector.

The JETP Resource Mobilisation Plan focuses on eight groups of tasks, namely: (i) Improvement of the regulatory framework for the energy transition; (ii) Acceleration of transition from coal power to clean energy; (iii) Development of the industrial and service ecosystem for renewable energy; (iv) Energy saving and energy efficiency; (v) Upgrading of power transmission and energy storage systems; (vi) Green energy transition and greenhouse gas emissions reduction in the transport sector; (vii) Innovation, development, and technology transfer; and (8) Ensuring a just energy transition. Projects and tasks will continue to be reviewed, updated and finalized by the JETP Secretariat, the Working Groups supporting the implementation of the JETP, and partners.

The launch of the Resource Mobilisation Plan at COP28 signifies a significant milestone in Viet Nam’s commitment to achieving clean energy development goals, moving towards a future of net-zero emissions and sustainable development. The cooperation and commitments of international partners will be critical for the achievement of this goal.

Addressing the event, Prime Minister Pham Minh Chinh said: As a developing country, Viet Nam still commits to achieve net-zero emissions by 2050 with international support and assistance in terms of finance, infrastructure, technologies, governance, and human resources.

The Southeast Asian country has taken concrete steps to realize the aforesaid goal, including the adoption of a National strategy for climate change response toward 2050, the 8th National Power Development Plan VIII, and the National Master Plan for Energy Development, said Prime Minister Pham.

He called on international financial institutions, development funds, and developed countries to work with Viet Nam in realizing green transition goals to help achieve net-zero emissions by 2050.

On the occasion, Prime Minister Pham hosted a reception for Standard Chartered Chief Executive Bill Winters, during which he spoke highly of Standard Chartered's practical contributions to socio-economic development in Viet Nam.

He called on Standard Chartered to continue support for Viet Nam to realize climate change commitments as the country needs a huge volume of capital to achieve net-zero emissions./.