The Prime Minister of the Socialist Republic of Vietnam, Pham Minh Chinh officially announced the Resource Mobilization Plan to implement the Political Declaration on establishing the Just Energy Transition Partnership (JETP) yesterday, signalling the country’s determination to deliver on their energy transition goals.
The Global Wind Energy Council (GWEC), the Ministry of Planning and Investment (MPI) of the Government of Viet Nam, and the Embassy of Viet Nam in the United Arab Emirates (UAE) successfully co-organised the Viet Nam Business Forum: Mobilizing Resources for the Green Transition today, gathering 160 key stakeholders for the Green Transition.
Held alongside the 2023 United Nations Framework Convention on Climate Change (COP28), the high-level forum was co-chaired by the Prime Minister of the Socialist Republic of Vietnam, Pham Minh Chinh, with Ben Backwell, CEO of GWEC – an organisation that represents renewable energy (RE) developers responsible for 70% of global wind power capacity. The business forum convened ministerial leaders, local authorities, embassies, international organisations, and experts in the offshore wind supply chain. Major wind power developers, potential RE buyers and leading financial institutions also participated.
RE is key in facilitating the green transition. Its share in the global generation of all energy sources is expected to increase from 28% in 2021 to 69% in 2030, accounting for 11,000 GW of global installed RE generation capacity [1]. Among the RE sources, offshore wind stands out as a solution that provides large scale, locally-sourced clean power, boosting energy security and providing sustainable economic growth and jobs in the market over the long term. Vietnam currently boasts a significant wind power potential capacity of 600 GW [2], amplifying the strategic significance of the business forum. The country is in an opportune moment to unlock the economic prospects of RE and fulfill its net zero commitments through wind power development.
The “Viet Nam Business Forum” facilitated discussions between domestic and international delegates to develop the financial and policy frameworks needed to accelerate Vietnam’s green transition, especially in offshore wind development. The policies aim to unleash the country’s wind energy potential, positioning the country as a top RE supply chain hub and attract significant private sector investments, driving growth in the country’s manufacturing base and supporting the overall green transition.
“Offshore wind is a cost-effective and price-predictable RE solution for countries planning their energy transition. GWEC recognises wind power’s pivotal role in tackling climate change and energy security and we applaud Vietnam’s commitment to prioritise wind energy for sustainable economic growth and large-scale RE generation.”Ben Backwell, CEO, GWEC
PM Chinh, currently leading a senior Vietnam Government delegation in Dubai, communicated the Vietnam Government’s progress towards the net zero target at COP28. Vietnam is participating in a Political Declaration on establishing the Just Energy Transition Partnership (JETP) and the Power Development Plan VIII (PDP VIII) aims for 150 GW and 573 GW of energy capacity from all sources, requiring investments of 119.8 billion USD and 511 billion USD for power sources alone by 2030 and 2050, respectively.
Collaboration between the Vietnam Government, developed countries, international organisations, and the global business community is essential to meeting the RE investment needs for the Net Zero target. GWEC is working closely with government ministries such as the Ministry of Industry and Trade (MOIT), Ministry of Natural Resources and Environment (MONRE), Ministry of Planning and Investment (MPI) in Vietnam to push for the wind energy transition. The organisation is also collaborating with the Vietnam Energy Partnership Group, The World Bank and various other multilateral organisations and stakeholders.
An energy company participating in the forum proposed several recommendations to encourage investment in Vietnam’s green transition. The suggestions included urging the government to prioritise the establishment of a clear framework for offshore wind. This includes completing the national Marine Spatial Planning and revising Decree 11 to designate specific maritime zones for effective utilisation of marine resources by organisations and individuals.
The company also emphasised the need to establish an inter-ministerial committee dedicated to streamlining procedures for offshore wind projects. This committee would facilitate collaboration within the government and play a crucial role in allocating sites for pilot projects in the offshore wind sector.
At Unilever, we acknowledge the paramount importance of tripling renewable energy by replacing traditional sources with cleaner alternatives. We’ve achieved 100% renewable electricity in our Vietnam operations since 2021 and aim for a Net Zero value chain by 2039. Collaboration among governmental bodies, renewable energy generators and energy buyers is crucial for this energy transition.
We appreciate and fully support that the Vietnamese government has taken steps to design the DPPA program which is a catalyst for investor attraction to green energy area and a critical mechanism for Vietnam to achieve its net zero emission ambition by 2050.Thomas Lingard, Global Head of Sustainability, Unilever
Allowing Direct Power Purchase Agreements would accelerate our transition to 100% renewable electricity across our significant operation in Vietnam. We look forward to collaborating with the government and others to make this a reality.Jim Andrew, Executive Vice President and Chief Sustainability Officer, PepsiCo
[1] According to the report “Tripling Renewable Power and Doubling Energy Efficiency by 2030 – Crucial steps towards 1.5°c” IRENA, 2023 (Access here).
[2] According to Power Development VIII (Access here).
