The Decision of the Prime Minister approving the Project to implement the Political Declaration establishing a Just Energy Transition Partnership

On 30/8/2023, the Prime Minister issued the Decision No. 1007/QD-TTg approving the Project to implement the Political Declaration establishing a Just Energy Transition Partnership (JETP Declaration).

According to the Decision, the overall goal of the Project is to successfully implement the JETP Declaration associated with promoting the development of renewable energy, using energy economically and effectively, contributing to the implementation of net zero emission goals by 2050; developing the energy industry in harmony between sub-sectors with synchronous and smart infrastructure on the basis of ensuring national energy security and development goals, ensuring fairness in energy transition. To receive and effectively use support from international partners in technology transfer, administration, human resource training, and financial provision for the implementation of the JETP Declaration, contributing to the implementation of the orientation of the Developing Vietnam's national energy strategy, implementing the Global Declaration on converting coal power to clean energy.

* Specific goals are as follows

+ The period from now to 2030

- To build and improve the legal framework to create favorable conditions to attract investors, businesses and people to participate in a just energy transition process and promote technology transfer.

- To develop a Resource Mobilization Plan to implement the JETP Declaration (the Resource Mobilization Plan) and carry out pilot projects to implement a just energy transition. To implement the Resource Mobilization Plan with international financial support and technology transfer to promote the conversion of coal-fired power and fossil energy use to clean energy; develop types of renewable energy and new energy (green hydrogen, green ammonia...).

- To upgrade and build smart, advanced and modern electricity production, transmission, storage, distribution and operating infrastructure, capable of large-scale integration of renewable energy sources; enhance electrification and human resource development; gradually master modern technology, progressing to produce equipment to serve the development of the renewable energy sector; improve energy industry management capacity to an advanced level.

- To develop the renewable energy industry, especially the manufacturing industry of renewable energy equipment, electricity storage equipment, recovery, absorption, storage and use of CO2; promote the production of green hydrogen, green ammonia... To strive to form 02 inter-regional renewable energy industry and service centers in areas with great potential such as the North, South Central, and South by 2030.

- To identify risk mitigation measures to protect businesses, investors, workers and poor, vulnerable households during the energy transition; provide new training and capacity building to capture investment and employment opportunities from the renewable energy development ecosystem.

- To create consensus and active participation of people, businesses, and communities in economical and efficient use of energy and energy transition to strive for a renewable energy rate of 47% and peak emission level of the power sector is no more than 170 million tons of CO2 equivalent, the total scale of coal-fired power capacity is no more than 30,127 MW with full and substantive international support.

+ The period after 2030

- To continue to improve the policy system to make energy transition, production and use of clean energy become regular and continuous activities of organizations, businesses, communities and all people with the leadership of State and international support.

- To continue to develop the renewable energy industry, especially the industry of manufacturing renewable energy equipment, electricity storage equipment, recovery, absorption, storage and use of CO2; produce green hydrogen, green ammonia...

- Not to build new and gradually eliminate coal-fired power plants, strongly implement measures to reduce greenhouse gas emissions towards 2050, achieve energy emissions not exceeding 101 million tons of CO2 equivalent, the proportion of renewable energy reaches about 80 - 85% of total primary energy.

- Vietnam becomes a regional renewable energy center, with a team of good experts on equitable energy transition to share Vietnam's experiences with the international community.

* The JETP Declaration offers three viewpoints, specifically:

- To maximize mobilization and effective use of resources to implement a just energy transition on the principle of harmonizing the interests of entities involved in investing and using energy and meeting the development requirements of the regions and localities; ensure within the national public and foreign debt framework, promote the implementation of national energy development strategic orientation, National Energy Master Plan and Nationally Determined Contribution (NDC) of Vietnam.

- To ensure the energy transition process open, transparent and fair and has broad consensus among relevant parties, including businesses, workers and population groups affected by the energy transition process; improve the effectiveness and efficiency of the equitable energy transition process.

- Private investment resource is important in a just energy transition process; State resources and the International Partnership Group (IPG) lead the process of technology transfer, improve governance capacity, and alternative clean energy. Resources from the Glasgow Financial Alliance for net zero emission goals and other financial institutions invest directly in businesses, not through Government guarantees.

In addition, the Decision also sets out key tasks, implementation resources and organization of implementation of the Project.