What does Vietnam need to do to achieve Net Zero?

Leaders of many international organizations such as HSBC and WEF highly appreciate the prospects of the Vietnamese economy as well as the vision presented by the head of the Vietnamese government at COP28, in the roadmap for implementing commitments on combating climate change.

Speaking to the press at the recent COP28 conference in Dubai, United Arab Emirates (UAE), Noel Quinn, Global CEO of HSBC Group, said he was “very impressed with and understood Prime Minister Pham Minh Chinh ’s vision in implementing commitments to combat climate change.”

Prime Minister Pham Minh Chinh received Mr. Noel Quinn, Global CEO of HSBC Group, on the afternoon of December 2nd, within the framework of bilateral activities at COP28.

NORTH JAPAN

Mr. Noel Quinn also affirmed that HSBC will strive to contribute to the realization of that vision. HSBC is inspired by the national green transition plan and the bank will do its utmost to help Vietnam follow this path. Assessing Vietnam's economic prospects, the Executive Chairman of the World Economic Forum (WEF), Borge Brende, said that Vietnam is known as one of the fastest-growing economies in the world. Many well-known companies have invested in Vietnam to manufacture goods and export them. “We are quite optimistic about the prospects of the Vietnamese economy in the coming years,” Mr. Brende shared. According to the WEF Chairman, despite facing impacts from geopolitical and geoeconomic issues, Vietnam remains a well-developed country, with GDP growth of around 5% this year and is expected to attract more investment next year. “Vietnam’s economy relies heavily on exports, and external markets are important partners for Vietnam. A positive advantage is that Vietnam’s largest importer of goods, the US, continues to grow,” the WEF Chairman assessed. Regarding recommendations for Vietnam, according to Mr. Brende, the world is rapidly developing digital services and technology. The digital economy accounts for approximately 50% of the global economy and is growing 2.5 times faster than all other sectors combined. Therefore, Vietnam needs innovation and development in this area. This is a key factor for enhancing its competitiveness in the future.

Challenges include capital, human resources, etc.

One of the biggest commitments Vietnam made at COP26 (Glasgow) was to achieve net zero emissions by 2050. According to Mr. Dao Xuan Lai, Head of the Climate Change, Environment and Energy Unit of the United Nations Development Programme (UNDP), Vietnam faces many challenges in achieving the net zero goal.

The Prime Minister and President of the European Commission, along with the UK Minister of State, approved a plan to mobilize resources for the implementation of the JETP Declaration.

THANH GIANG

Specifically regarding investment capital, achieving net zero emissions requires a synchronized transformation of the entire economy towards a green, circular, low-carbon economy, thus requiring substantial investment. In the electricity sector alone, the investment capital needed by 2030 is estimated at US$134.5 billion. At COP28, the partner groups including the European Union (EU), the United Kingdom and Northern Ireland, the United States, Japan, Germany, France, Italy, Canada, Denmark, and Norway (IPG) approved a plan to mobilize US$15.5 billion over 3-5 years to implement the JETP Declaration. However, this is only a small contribution to the total financial resources needed for Vietnam's transition. Furthermore, to achieve Net Zero, Vietnam also needs to address challenges related to technology and human resources. UNDP experts recommend that Vietnam focus on institutional reforms, creating a more transparent and accountable investment environment to attract high-quality capital from domestic and foreign private sectors, especially in energy policies and financial mechanisms, reducing barriers and risks. In addition, it is necessary to promote the development and transfer of technology, international cooperation, particularly in offshore wind power, solar panels, energy storage, and smart power transmission. Simultaneously, focus should be placed on developing human resources for green economy sectors, renewable energy, and circular economy, ensuring a fair transition when implementing the Just Energy Transition Plan (JETP). According to Mr. Dao Xuan Lai, building a "reasonable and reliable" electricity pricing mechanism during the transition to renewable energy is essential, especially for low-income households and other vulnerable groups.

Thanhnien.vn