Vietnam will receive assistance from the international JETP Partnership to meet its ambitious Net Zero 2050 goal, hasten the peaking of its greenhouse gas emissions, and make the switch from dirty to clean energy.
A bold Just Energy Transition Partnership (JETP) was approved on December 14 by leaders of Vietnam and the International Partners Group, which consists of the European Union, the United Kingdom, France, Germany, the United States, Italy, Canada, Japan, Norway, and Denmark.
For the next three to five years, the JETP will mobilize an initial $15.5 billion in public and private funding to support Viet Nam’s transition to a greener economy.
A number of challenging new goals are being persued with assistance from the Partnership by Vietnam:
Shifting the year for reducing greenhouse gas emissions from 2035 to 2030.
Lowering the peak annual emissions from the power sector by up to 30%, from 240 megatons to 170 megatons, and pushing back the peaking date by five years, to 2030.
Limiting Vietnam’s coal capacity to 30.2 gigawatts rather than the 37 gigawatts currently planned.
Accelerating the use of renewables so that, instead of the current planned 36%, renewable energy must make up at least 47% of electricity generation by 2030.
By 2035, the reduction of 500 megatons (0.15 billion tonnes) of emissions will be the result of meeting these ambitious goals.
Initial financial support for the Vietnam JETP comes in the form of pledges totaling $7.75 billion from the IPG, the Asian Development Bank, the International Finance Corporation, and the International Finance Corporation alone. The Glasgow Financial Alliance for Net Zero (GFANZ) has pledged to work to mobilize and facilitate a matching $7.75 billion in private investment from a first group of private financial institutions.
Vietnam will develop and adopt the Viet Nam JETP Resource Mobilisation Plan over the course of the following 12 months with the assistance of partner nations, enabling the implementation of the JETP funding and strategy.
Following the successful debut of the South Africa JETP at COP26 and the Indonesia JETP at this year’s G20 Leaders’ Summit, Vietnam is the third nation to introduce a JETP. Vietnam’s JETP will show how economic growth can be separated from the consumption of fossil fuels as the country has a rapidly expanding economy.
The core of the JETP is ensuring the transition away from fossil fuels. Minimizing the negative effects of pollution, fostering economic growth, and creating new jobs, a just transition will help Vietnam achieve its climate goals and ensure a resilient and prosperous future for its citizens. No one must be left out of the green transition at any point, and it is imperative that the entire civil society participate.
-The American Embassy provided the information for this story