Vietnam has launched the Resource Mobilization Plan (RMP) to implement the Just Energy Transition Partnership (JETP) between Vietnam and the International Partners Group (IPG), under which a US$15.5 billion initial finance will be given to the Southeast Asian country.
Vietnamese Prime Minister Pham Minh Chinh made the announcement on Friday, when he attended the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), which opened in Dubai of United Arab Emirates a day earlier, with some 70,000 participants, including leaders from 197 countries, EU officials, heads of non-governmental organizations, and others.
The launch of the RMP represents a key milestone towards the implementation of the JETP, which was agreed between Vietnam and the IPG in December 2022 at the EU-ASEAN summit in Brussels and outlined in the JETP Political Declaration.
The IPG comprises the EU, the UK, Canada, Denmark, France, Germany, Italy, Japan, Norway and the U.S., and is co-led by the EU and the UK.
Under the JETP, international partners from IPG and the Glasgow Financial Alliance for Net Zero (GFANZ) have committed to provide around $15.5 billion for Vietnam over the next three to five years to address urgent needs, which serve as catalysts for the just energy transition in the country.
Of the initial finance, $7.75 billion will be mobilized by IPG members, with more attractive loan conditions than the current capital market, and at least $7.75 billion by the GFANZ in private finance to directly support businesses through investments by international corporations and enterprises, according to the Vietnam Government Portal (VPG).
Through JETP, international partners help Vietnam improve relevant policies, transfer technology, provide financial support for a fair energy transition, attract investment in renewable energy development, improve energy use efficiency, upgrade power grid infrastructure, develop skills and capacities needed for just transitions through vocational education and training, and increase participation of the private sector.
They will also help Vietnam to build a renewable energy center, promote carbon storage and use, manufacture energy storage equipment and batteries, produce green hydrogen, and develop offshore wind power.
Just energy transition is decisive for Vietnam to realize its national energy development strategic orientation, including the ambitious goal of achieving net zero emissions by 2050, along with people-centered sustainable development targets, PM Chinh told the audience.
He emphasized that Vietnam has taken drastic steps to accelerate the energy transition process and suggested international partners to prioritize cooperation with Vietnam in five areas, including development of industrial ecosystems and services using renewable energy; energy transmission and storage; use of energy in economical and efficient ways; green energy transition; and reduction of greenhouse gas emissions in the transportation industry.
The PM urged international partners to promptly reach an agreement on translating the $15.5 billion funding into breakthrough projects that help accelerate the just energy transition in Vietnam and thereby promote economic growth, strengthen energy security and ensure a prosperous future for all people of the country.
“The JETP supports Vietnam to deliver on its net zero 2050 goal and 2030 targets to accelerate and reduce the peaking of its greenhouse gas emissions and transition away from fossil fuels to clean energy,” the European Commission (EC) said in a statement.
As an important first step towards the implementation of the JETP, the RMP will be a living document, updated regularly as implementation progresses, according to the EC.
President of the European Commission, Ursula von der Leyen, told the ceremony that the launch of the RMP has set a great landmark for the implementation of the Just Energy Transition Partnership, and demonstrates Vietnam’s determination to facilitate clean energy development.
“The EU is proud to be part of this partnership and we remain committed to working with Vietnam to support the necessary reforms for speeding up crucial investment into renewable energy and a green economy,” she added.
The Prime Minister of the United Kingdom, Rishi Sunak, commented that the RMP will unlock the vital finance needed to accelerate Vietnam's transition from fossil fuels to clean energy, and help meet the nation's ambitious climate and economic goals while ensuring nobody communities are not left behind.
“The UK is proud to be a partner in helping to deliver it,” Sunak stated.