Vietnam announces Resource Mobilization Plan to implement the Political Declaration establishing the Just Energy Transition Partnership (JETP)

The JETP Statement was adopted by Vietnam and IPG members within the framework of the Summit to celebrate the 45th anniversary of ASEAN-EU relations in Brussels, Belgium in December 2022.

Prime Minister Pham Minh Chinh met and discussed with international partners at COP28.

Through JETP, international partners help Vietnam improve policies, transfer technology, and provide financial support for a just energy transition; attract investment in renewable energy development, improve energy efficiency, and upgrade grid infrastructure; develop skills and capacities needed for a just transition througheducation and vocational training; increase private sector participation; develop renewable energy hubs and establish a renewable energy industry; promote carbon capture, storage, and utilization, manufacture of energy storage equipment and batteries, produce green hydrogen, and develop offshore wind power.

Prime Minister Pham Minh Chinh, Minister of Natural Resources and Environment Dang Quoc Khanh, and Deputy Minister of Foreign Affairs Do Hung Viet met and discussed with international partners at COP28. Photo: Nhat Bac.

The partners commit to mobilizing an initial resource of US$15.5 billion over the next 3 to 5 years to address Vietnam’s urgent, catalytic energy transition needs. Of this, US$7.75 billion is committed by the IPG Group with more attractive borrowing terms than the current capital market; the Glasgow Finance Alliance for Net Zero (GFANZ) commits to mobilizing at least US$7.75 billion in private finance to directly support businesses through investments from international corporations and enterprises. JETP is one of the solutions to help Vietnam access the necessary resources to effectively implement a low-carbon, climate-resilient development roadmap in the global energy transition effort; at the same time, develop new economic opportunities to support Vietnam in achieving its green transition goals, towards a net zero emissions future.

To implement the JETP Declaration, on August 31, 2023, the Prime Minister issued Decision No. 1009/QD-TTg approving the JETP Implementation Project. According to the JETP Declaration, Vietnam needs to coordinate with international partners to develop a Resource Mobilization Plan to implement JETP. The Prime Minister has established a JETP Implementation Secretariat headed by the Minister of Natural Resources and Environment, Deputy Heads of the Secretariat are Deputy Ministers of the Ministry of Natural Resources and Environment, Ministry of Planning and Investment, Ministry of Industry and Trade, Ministry of Finance and members include representatives of relevant ministries and branches. The JETP Secretariat has strongly promoted the implementation of the JETP Declaration, especially the development of a Resource Mobilization Plan to implement JETP. The plan sets out a roadmap to achieve the goals of a just energy transition, principles, criteria for prioritizing project selection and mobilizing necessary financial resources to implement JETP.

Prime Minister Pham Minh Chinh and representatives of countries attending COP28 take a group photo - Photo: VGP/Nhat Bac

Based on Resolution No. 55-NQ/TW of the Politburo on the orientation of Vietnam's National Energy Development Strategy, the content of the Nationally Determined Contribution, the National Power Development Plan and the National Energy Master Plan for the period 2021 - 2030, with a vision to 2050, the JETP Implementation Project and proposals from domestic and international partners, the Resource Mobilization Plan sets out a list of projects and tasks to mobilize finance from IPG partners, the Glasgow Financial Alliance for Net Zero Emissions (GFANZ) and other donors. The financial resources committed to mobilize by partners are currently only a small part of the total demand for implementing a just energy transition in Vietnam, and will continue to mobilize and use budget resources and mobilize from the private sector.

Prime Minister Pham Minh Chinh witnessed the signing of the Memorandum of Understanding on cooperation between the Ministry of Natural Resources and Environment of Vietnam and the World Economic Forum.

The resource mobilization plan focuses on 08 groups of tasks: (1) Perfecting institutions and policies to promote energy transition; (2) Promoting the conversion of coal power to clean energy; (3) Developing the industrial ecosystem and renewable energy services; (4) Using energy economically and efficiently; (5) Upgrading the power transmission and distribution system, accelerating the roadmap for building a smart power system, developing an energy storage system; (6) Converting to green energy, reducing greenhouse gas emissions in the transportation sector; (7) Innovating, developing and transferring technology; (8) Ensuring fairness. The projects and tasks will continue to be reviewed, updated and completed by the Secretariat, the Working Groups supporting the implementation of JETP and partners.

The resource mobilization plan announced at COP28 is a new milestone in Vietnam’s efforts to achieve the goal of developing clean energy, moving towards a net zero emission future and sustainable development. International cooperation and commitment from partners will be key to achieving this goal.

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