The Government News on December 5 quoted Mr. Dao Xuan Lai, Head of Climate Change and Environment at UNDP Vietnam, as telling reporters on the sidelines of the 28^th United Nations Climate Change Conference (COP28) that Vietnam needs a huge amount of financial resources to achieve its goal of net-zero emissions by 2050.

The country should shift its entire economy towards a green, circular, and low-carbon economy, and such a process will require huge volumes of capital, he said, adding that it needs some $134.5 billion for the development of renewable energy alone by the end of this decade.

At COP28, Vietnam and the International Partners Group (IPG) announced the launch of the country’s Resource Mobilization Plan (RMP) to implement the Political Declaration on establishing the Just Energy Transition Partnership (JETP), which is expected to help accelerate the transition to a green, circular, and digital economy.

However, the $15.5 billion to be mobilized under the commitment by IPG and the Glasgow Financial Alliance for Net Zero (GFANZ) to help Vietnam achieve its goal of net-zero emissions only constitutes a small part of the capital required, Mr. Lai said.

He suggested that Vietnam strengthen investment in and foster advanced technology transfer for offshore wind power, solar panels, carbon storage and use, and hydrogen projects.

It should also invest more heavily in the development of a high-quality workforce for the green economy and renewable energy while stepping up institutional reform to create a transparent and attractive environment for international business giants to invest in a green, circular, low-carbon, and high-tech economy, he recommended.

Meanwhile, in a recent interview with the Vietnam Government Portal (VGP), UNDP Resident Representative in Vietnam Ramla Khalidi said Vietnam should prioritize a just energy transition, accelerated by the implementation of its JETP.

It should focus on measures to ensure that the transition does not disproportionately affect vulnerable populations and workers in the fossil fuel industry, while promoting equitable access to new job opportunities in the renewable sector and offering retraining and reskilling programs so that social protection measures are in place to account for any disruption.

The role of the government as the startup investor in essential physical infrastructure and as the guardian of an attractive regulatory environment that fosters renewables is key, she said, adding that the government can act as a startup investor placing essential investment in physical infrastructure as well as making sure that the regulatory framework is attractive and able to attract renewable energy investments across the sector.