Finding solutions to meet Net zero commitments

Challenges and bottlenecks

That is the issue discussed by experts when discussing the issuance of energy and mineral plans to encourage businesses of all economic sectors to participate in investing in the direction of green economy and circular economy.

Sharing at the seminar "Finding solutions to implement energy sector planning, meeting Net zero commitments" on September 20 of Cong Thuong Newspaper, economic expert Dr. Vo Tri Thanh said that energy is facing a number of uncertainties such as technology, climate change, capital sources... These requirements require a lot of institutional changes but are flexible enough to adapt to unpredictable fluctuations.

A representative of the Department of Petroleum and Coal (Ministry of Industry and Trade) said that the national planning of infrastructure for storing and supplying petroleum and gas mainly provides guidance on the location and scale of the storage system and the petroleum and gas pipeline system nationwide so that businesses can invest in effective construction, serving their production and business activities, contributing to ensuring infrastructure for storing and ensuring energy security.

In addition, there are difficulties in coal sources for electricity production in the coming time. Notably, the increase in large volumes of domestically produced coal is limited due to increasingly difficult production conditions.

Domestic coal demand has now exceeded domestic production capacity. In the future, Vietnam will have to continue importing large quantities of coal, up to tens of millions of tons, to supply the domestic market. This shows the economy's increasing dependence on imported coal.

Vietnam Electricity Group (EVN) said that in the Power Plan VIII, EVN continues to be assigned the key role in ensuring stable and safe power supply for socio-economic development and implementing investment in power source and transmission grid projects according to assigned tasks.

However, the proportion of power sources owned by EVN and EVN's units (including GENCO 2 and 3 Joint Stock Companies) accounts for only about 38%, of which EVN directly manages only about 15% of power sources and this proportion will continue to decrease rapidly as the proportion of renewable energy increases in the coming time.

“Therefore, the biggest challenge is to ensure the balance of electricity supply and demand. This is not only the responsibility of EVN but also depends a lot on other state-owned and private enterprises outside of EVN,” said an EVN representative.

Explaining the challenges further, economic expert Dr. Vo Tri Thanh said: “Therefore, the energy sector plays a decisive role in implementing the green mission and green aspirations. However, for a country with limited resources and capital like ours, “greening” the energy sector still faces many challenges.

The difficulty here is, in the process of "getting rid of the old, building the new", how can we still ensure energy security, ensure economic development and the word "green" still covers more?

Dr. Vo Tri Thanh stated, first is whether the business environment is attractive enough for investors or not? According to the World Bank's calculations, to green Vietnam, the roadmap to 2040 needs 368 billion USD. Second is the implementation institution. Third is the issue of technology selection. This is still a very controversial issue.

Towards meeting Net zero commitments

At the seminar, experts, managers and businesses all shared the same view that in order to effectively implement plans, first of all, with energy development planning, in the long term, it is necessary to make energy development greener, cleaner and meet the requirements of providing clean raw materials for development.

However, in addition, it is necessary to calculate the processing related to environmental protection as well as suitability with the specific conditions and circumstances of Vietnam's level of scientific and technological development, the natural conditions that we have, then the energy planning will be effective, both practical and sustainable, long-term development. If we do not try our best, other industries will also be greatly affected by the electricity industry.

For Vietnam to achieve its sustainable development goals, the energy sector is one of the decisive sectors. In fact, the green growth strategy requires many areas such as green consumption, green production, etc. and requires the participation of the entire political system. In particular, investment in energy is associated with the word "green". This content is very important in a more market-oriented and competitive direction.

Ensuring consistency and connectivity between plans is one of the most important issues. We are currently implementing planning with broad goals, not just limited to each locality and each sector. If we do not ensure consistency and connectivity between plans, then the planning will be just a “dead plan”.

Accordingly, the planning must be consistent with the general planning of the country in the same direction and thus there may be sectors that develop a little slower but are more effective. But there are also sectors that must develop faster to create a breakthrough, helping the development of a number of other sectors as well as of a number of localities.

The Department of Oil, Gas and Coal proposed solutions to organize the selection of investors for energy projects, arrange land funds for the development of energy projects according to the provisions of law, in which priority is given to arranging land funds to implement energy projects according to the planning; preside over and closely coordinate with investors to carry out site clearance, compensation, migration and resettlement for energy projects according to regulations.

Hanh Nguyen

Source