The energy sector plays a vital role in achieving net zero emissions by 2050, and Vietnam urgently needs to promote a green transition in its energy mix. Therefore, Vietnam needs financial and technical assistance from developed countries.
In order to further concretize the national green growth strategy, the Prime Minister of the country approved the National Green Growth Action Plan (2021-2030) on July 22, which includes four important goals: reducing greenhouse gas emissions per unit of GDP, promoting Green transformation of the economy and society, advocacy of green lifestyle and sustainable consumption, at the same time, green transformation must be realized on the basis of the principles of equality, inclusiveness and flexibility.
At a meeting on the 26th United Nations Climate Change Conference (COP26) on the impact of the 26th United Nations Climate Change Conference (COP26) on the green energy transition on August 17, Nguyen Thi Bich Ngoc, Deputy Minister of Planning and Investment of Vietnam, said that lack of resources is the key to realizing energy Transition goals, and the biggest obstacle to achieving net-zero emissions by 2050.
According to World Bank estimates, to achieve net-zero emissions, Vietnam will need an additional $368 billion between 2022-2040, or about 6.8 percent of the country's annual gross domestic product.
Among them, the proportion of funds for disaster resilience building alone has reached about two-thirds, because a large amount of funds need to be mobilized to protect assets, infrastructure and vulnerable groups. On the road to decarbonization, the cost comes mainly from the energy sector, including the cost of investing in renewable energy and moving away from coal, which could cost around $64 billion over the 2022-2040 period.
Hoang Tien Dung, Director General of the Electricity and Renewable Energy Department of Vietnam’s Ministry of Industry and Trade (MoIT), said: “Due to the rapid development of renewable energy and the replacement of fuel in thermal power plants, after the 26th UN Climate Change Conference, the CO2 emissions from the revised power development plan have dropped significantly."
Carbon dioxide emissions will peak in 2031-2035 (231 million tons), and then gradually decline. By 2045, CO2 emissions will fall to around 175 million tonnes, representing a reduction of around 208 million tonnes of CO2 compared to pre-COP26 options.
Vietnam's power generation sector is estimated to emit around 40 million tonnes of carbon dioxide annually by 2050, helping the country meet its previous commitment at COP26 to achieve net-zero emissions by 2050.
Dang Hoang An, Deputy Minister of Industry and Trade of Vietnam, said at the event that the energy transition is not only an internal issue of the energy sector, but also the transition of the entire economy and society from energy-intensive to energy-efficient. Data from the Ministry of Industry and Trade shows that with the industrialization and modernization of the country's economy in the future, electricity and energy demand will continue to grow, and it will be difficult to meet the demand growth.
Therefore, the most important task at present is to establish a suitable, feasible and sustainable development strategy. Deng Huangan said: "It is urgent to carry out R&D cooperation in energy science and technology on a global scale, especially the use of hydrogen, ammonia and other new energy power generation, advanced energy storage technology and carbon absorption and carbon storage technology. At the same time, it is necessary to raise the awareness of various economic sectors. , the cost-effective use of energy is imminent.”
Nguyen Thi Jasper proposed five ideas for future energy transition:
Elaborately design a green and sustainable transformation roadmap to ensure national energy security.
In the transition process, try to minimize the impact on disadvantaged groups, such as rising electricity bills that overwhelm poor households, and worker transition or unemployment caused by the transition from fossil energy to renewable energy.
All parties involved in the energy transition must take responsibility.
Energy transition requires financial and technical support from developed countries.
In the energy transition process, assessments, inspections, monitoring and related penalties must be effectively implemented to limit and reduce investment, and to set alternative routes to decommission polluting production facilities and high-emission infrastructure.