Leaders from Vietnam and the International Partners Group, including the EU, the UK, France, Germany, the US, Italy, Canada, Japan, Norway, and Denmark, agreed to establish the bold Just Energy Transition Partnership (JETP) on December 14.
The Partnership will help Vietnam deliver on its ambitious goal of net-zero emissions by 2050, accelerate the peak of its greenhouse gas emissions, and transition away from fossil fuels to clean energy. An initial $15.5 billion of public and private finance will be mobilized over the next three to five years to support the country’s green transition.
“Today, Vietnam has demonstrated leadership in charting an ambitious clean energy transition that will deliver long-term energy security,” US President Joe Biden said. “The US is proud to be a partner in this effort.”
The JETP will help Vietnam work towards a number of ambitious new targets, such as bringing forward the projected peak of all greenhouse gas emissions from 2035 to 2030; reducing peak annual power sector emissions by up to 30 per cent, from 240 megatons to 170 megatons and bringing forward the peak date by five years to 2030; limiting Vietnam’s peak coal capacity to 30.2 GW, down from the current planning of 37 GW; and accelerating the adoption of renewables so that renewable energy accounts for at least 47 per cent of electricity generation by 2030, up from the currently planned 36 per cent.
“Vietnam is a dynamic, emerging economy at the heart of Southeast Asia,” said UK Prime Minister Rishi Sunak. “The investment we are making today means the country can cut its emissions while simultaneously creating new jobs and growth. Together, we will deliver a cleaner, greener future for Vietnam and our planet.”
The successful delivery of these ambitious targets will result in around 500 megatons (0.5 billion tonnes) of emissions saved by 2035.
Initial contributions to the Vietnam JETP include $7.75 billion in pledges from the IPG together with the Asian Development Bank and the International Finance Corporation. This is supported by a commitment to work to mobilize and facilitate a matching $7.75 billion in private investment from an initial set of private financial institutions coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ), including Bank of America, Citi, Deutsche Bank, HSBC, Macquarie Group, Mizuho Financial Group, MUFG, Prudential PLC, Shinhan Financial Group, SMBC Group, and Standard Chartered.
Over the next 12 months, Vietnam will work with the support of partner countries to develop and adopt the Vietnam JETP Resource Mobilization Plan, which will enable the implementation of JETP funding and strategies.
Vietnam is the third country to establish a JETP, following the successful launch of the South Africa JETP at COP26 and the Indonesia JETP at this year’s G20 Leaders’ summit. As a rapidly-growing economy, Vietnam’s JETP will demonstrate that economic growth can be decoupled from fossil fuel energy consumption.
“I am delighted that we have sealed a new Just Energy Transition Partnership with Vietnam during this important week for EU-ASEAN relations,” said Ms. Ursula von der Leyen, President of the European Commission. “With investments from international partners, Vietnam can boost renewable energies and enhance its energy security and autonomy.”
Google translate