Deputy Minister Nguyen Hoang Long said that the Ministry of Industry and Trade is actively implementing policies and projects to promote the energy transition in Vietnam.
As a rapidly growing emerging economy , with the Joint Energy Transition Partnership (JETP), the Asia Zero Emissions Community (AZEC) Initiative, Vietnam will demonstrate that economic growth does not go hand in hand with fossil fuel energy consumption.
To clarify the program, reporters from the Industry and Trade Newspaper interviewed Deputy Minister of Industry and Trade Nguyen Hoang Long.
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| Deputy Minister of Industry and Trade Nguyen Hoang Long |
Dear Deputy Minister, with strong determination, Vietnam has been affirming its readiness and taking concrete actions to access resources and implement a fair energy transition. So, how has the Ministry of Industry and Trade implemented this activity to maximize and effectively utilize resources to implement a fair energy transition?
Deputy Minister Nguyen Hoang Long: The JETP (Just Energy Transition Partnership) Statement was initiated at the COP26 Climate Summit, held in Glasgow, Scotland in November 2021.
At this conference, a number of developed countries (including the UK, the US, the EU, Germany, and other partners) signed the first JETP agreement with South Africa, aiming to support South Africa's transition from fossil fuels, especially coal, to renewable energy sources in an equitable and sustainable manner. This JETP model was later expanded and applied to other countries such as Vietnam, Indonesia, and Senegal with the aim of mobilizing international finance to support the energy transition.
The Joint Statement on Vietnam’s JETP was announced in Brussels, Belgium in December 2022, within the framework of cooperation between Vietnam and the International Partnership Group (IPG), including G7 countries and Denmark and Norway. The agreement aims to support Vietnam in mobilizing US$15.5 billion from public and private sources over 3-5 years to transition from fossil fuels to renewable energy, reduce greenhouse gas emissions and achieve carbon neutrality by 2050.
In January 2022, the Japanese Prime Minister announced that Japan will contribute to the decarbonization of Asia through the Asia Zero Emissions Community (AZEC) Initiative. Accordingly, countries (including Vietnam) will receive extensive financial and technical support through Japanese financial institutions and development organizations such as JBIC, JICA, NEXI, JOGMEC, NEDO, JETRO, etc.
The Ministry of Natural Resources and Environment, assigned as the focal point for implementing the JETP Declaration of Vietnam, has made many important efforts to contribute to the establishment of the JETP Secretariat, coordinating with ministries and sectors to prepare many important contents to organize the implementation of the activities of the JETP Secretariat and organizing forums to discuss with IPGs partners in implementing JETP projects in Vietnam.
In October 2024, at the 5th meeting of the National Steering Committee to implement Vietnam's commitments at COP26, the Prime Minister - Head of the Steering Committee concluded and assigned the Ministry of Industry and Trade to take over the task of the Secretariat to implement the Political Declaration of the Partnership for a Just Energy Transition (JETP) in Vietnam. In addition, the Ministry of Industry and Trade was assigned to be the focal point to implement activities within the framework of the AZEC Initiative, urgently reviewing projects for early implementation with Japanese partners.
Immediately after receiving the assignment, the Ministry of Industry and Trade quickly organized and implemented activities to promote the implementation of JETP in Vietnam. Specifically, the Ministry of Industry and Trade reviewed the list of projects proposed by participating parties such as Vietnam Electricity Group, Vietnam Oil and Gas Group, Research Institutes, Universities, enterprises, and localities of Vietnam to discuss and agree with international partners to implement JETP (an estimated 50 projects have been reviewed by the Ministry of Industry and Trade).
The identification of the list of projects implementing JETP must meet the requirements such as being consistent with the criteria of the JETP Resource Mobilization Plan announced by Vietnam at the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change in the United Arab Emirates in December 2023 and being consistent with Vietnam's guidelines, mechanisms, policies and laws on developing green and sustainable energy, effectively contributing to the goal of net zero emissions by 2050.
Based on the JETP project portfolio approved by competent authorities and the interest of IPG partners, the JETP Secretariat under the Ministry of Industry and Trade will promote cooperation activities between the parties to soon realize equitable energy transition projects in Vietnam in the coming time.
Regarding AZEC, the Ministry of Industry and Trade coordinated with the Embassy of Japan in Vietnam to organize a meeting to review activities within the framework of AZEC and the plan to deploy the AZEC Promotion Working Group in December 2024. At the meeting, the two sides agreed on the coordination and implementation methods and the 2025 Plan of the Working Group, focusing on reviewing and promoting the implementation of projects proposed by Vietnam (29 projects) and 82 projects proposed by Japan. In the coming time, to exploit the advantages and effectively deploy these two cooperation frameworks, we need to implement well a number of solutions as follows:
Strengthen information exchange, work with relevant ministries, branches, and financial institutions on the other side to promote participation and select substantive support, focusing on implementing projects proposed by the Vietnamese side;
Promote JETP and AZEC financial flows in general, especially promoting the strategic allocation of financial resources from IPG to priority projects with technology transfer; Expand opportunities to mobilize international finance from banks and financial institutions and promote close cooperation between development finance institutions and domestic banks to expand new financial channels.
Regarding international cooperation resources in the field of sustainable energy transition, Vietnam and the European Union (EU) are cooperating to implement the EU-Vietnam Sustainable Energy Transition Programme (SETP) worth 142 million Euros (EU non-refundable aid). This is the next program after the Vietnam Energy Sector Policy Support Programme worth 108 million Euros funded by the European Union for Vietnam in the period 2018-2021. The SETP Program was signed at the time when the European Union approved the Vietnam-EU Multi-Purpose Support Programme for the period 2021-2027. Through this Program, the EU will support Vietnam in addressing challenges in the energy transition process in Vietnam.
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| Deputy Minister Nguyen Hoang Long chaired the 2nd working session on the implementation of the Technology and Energy Group within the framework of the Just Energy Transition Partnership (JEPT), August 2024 |
Dear Deputy Minister, to achieve the goal of sustainable energy transition towards net zero emissions by 2050, how do we plan the energy transition according to Power Plan VIII for the goals related to JETP?
Deputy Minister Nguyen Hoang Long: The National Climate Change Strategy for the period up to 2050 has been approved by the Prime Minister under Decision No. 896/QD-BCT dated July 26, 2022. Accordingly, by 2030, under the business-as-usual (BAU) scenario, the energy sector will reduce by 32.6%, with emissions not exceeding 457 million tons of CO2 equivalent, so the pressure to reduce greenhouse gas emissions in the electricity sector is very large.
To achieve net zero emissions by 2050, we must synchronously implement many policies and solutions, including in the electricity sector. The Ministry of Industry and Trade has developed and submitted to the Prime Minister for approval the Power Plan VIII, which includes many long-term policies and solutions, specifically:
Firstly, do not develop new coal-fired thermal power projects after 2030, only develop coal-fired thermal power projects that are in the process of preparing for investment and construction.
Second, develop a fuel conversion roadmap for thermal power plants, including switching to biomass and ammonia for plants that have been in operation for 20 years when the cost is suitable. Stop operating plants that are over 40 years old if fuel conversion is not possible.
Third, by 2050, no longer use coal for electricity generation, completely switch fuel to biomass and ammonia.
In addition, the Power Plan VIII also proposes solutions to develop renewable energy, promote the development of onshore and offshore wind power, solar power suitable to the absorption capacity of the system, and prioritize and encourage the development of rooftop solar power, self-production and self-consumption.
To implement the above viewpoints and goals, the Ministry of Industry and Trade has been synchronously implementing a number of key solutions as follows:
Firstly , perfecting the policy framework for developing power projects, especially for power projects using renewable energy, specified in the Electricity Law No. 61/2024/QH15 passed by the National Assembly on November 30, 2024 and many Decrees to build a legal framework for developing renewable energy, developing self-produced and self-consumed electricity, and developing new energy electricity.
Second , submit to the Prime Minister for approval the strategy for developing Vietnam's hydrogen energy to 2030, with a vision to 2050 in Decision No. 165/QD-TTg dated February 7, 2024 to create an implementation roadmap, gradually replacing fossil fuels.
Third , promote the use of energy economically and efficiently, focusing on implementing electricity saving in all areas.
Finally, strengthen international cooperation in the field of energy transition.
Energy transition associated with the development of new energy to replace traditional energy sources and fossil energy is a necessary step for world integration and sustainable development. However, this is a new issue, and there is not much experience in the country to implement it in practice. Therefore, strengthening international cooperation and exchanging lessons learned in the field of energy transition creates a premise to propose policy frameworks and specific solutions according to each context and situation of the country and the world.
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| The Ministry of Industry and Trade is actively implementing policies and projects to promote the energy transition in Vietnam. Illustrative photo |
How has the Ministry of Industry and Trade proactively removed difficulties and obstacles in renewable energy projects to avoid wasting invested resources, contributing to the implementation of Resolution No. 55-NQ/TW of the Politburo, Power Plan VIII, Vietnam's commitments at COP 26, and firmly ensuring national energy security? In order to create a favorable investment environment to attract external resources and encourage businesses to invest in developing clean energy, what specific solutions has the Ministry of Industry and Trade implemented, Deputy Minister?
Deputy Minister Nguyen Hoang Long: Implementing the direction of the Government and the Prime Minister, the Ministry of Industry and Trade has reported to competent authorities to consider and decide to remove difficulties and obstacles in renewable energy projects. Based on the reports, proposals and consensus of relevant ministries, agencies and 27 localities at the conference on removing difficulties and obstacles for renewable energy projects chaired by Deputy Prime Minister Nguyen Hoa Binh in Nha Trang, Khanh Hoa province on October 19, 2024, the Steering Committee and the Government's Working Group have held many meetings to discuss solutions to remove difficulties and obstacles and synthesize written opinions of ministries, branches and localities on asking for the Politburo's opinions on policies and directions to remove difficulties and obstacles for renewable energy projects.
Carrying out the assigned tasks in Official Dispatch No. 5001/VPCP-CN dated December 6, 2024 of the Government Office, the Ministry of Industry and Trade, on behalf of the Working Group, sent Report No. 1070/BC-BCT dated December 7, 2024 to the Government on policies and directions to remove obstacles and difficulties for renewable energy projects.
On December 10, 2024, the Government issued Resolution No. 233/NQ-CP on the regular Government meeting in November 2024, in which it approved the policy on viewpoints, solutions and principles to remove obstacles and difficulties for renewable energy projects (Section IV of the Resolution).
On December 12, 2024, the Government held an online conference to announce the Government's Resolution on policies and directions to remove obstacles and difficulties for renewable energy projects, chaired by Prime Minister Pham Minh Chinh. At the conference, the Ministry of Industry and Trade issued Report No. 321/BC-BCT dated December 12, 2024 on the implementation of the Government's Resolution, which mentioned the specific situation of the projects, obstacles, viewpoints, solutions, principles and authority to resolve.
Thus, the Government's Resolution is the basis for relevant ministries and agencies to review legal regulations to remove difficulties and obstacles for renewable energy projects. The Ministry of Industry and Trade is continuing to review and classify the obstacles of renewable energy projects to report to the Steering Committee as a basis for assigning tasks to relevant agencies for implementation.
Thank you very much, Deputy Minister!
Source: https://congthuong.vn/thu-truong-nguyen-hoang-long-hop-tac-quoc-te-mo-co-hoi-chuyen-doi-nang-luong-tai-viet-nam-371581.html
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