Vietnam's Prime Minister, Pham Minh Chinh, announced the Resource Mobilization Plan for implementing the Political Declaration on the Just Energy Transition Partnership between Vietnam and the International Partners Group (IPG) during his participation at COP28 in Dubai. The plan outlines five areas of energy transformation where the Prime Minister called for international cooperation. Vietnam aims to shift its entire economy towards green, circular, and low-carbon, requiring a capital investment of around $134.5 billion for renewable energy development alone by the end of the decade. The country has launched a Resource Mobilization Plan (RMP) in partnership with international organizations to accelerate the transition to a green, circular, and digital economy. However, the committed funding of $15.5 billion falls short of the required amount. To achieve its goals, Vietnam should focus on offshore wind power, solar panels, carbon storage and use, and hydrogen projects. It should also invest in developing a high-quality workforce for the green economy, promote institutional reform, and create an attractive environment for international business investment. The government's role in investing in physical infrastructure and creating a favorable regulatory framework is crucial. Additionally, Vietnam should maintain its leadership in renewable energy, increase forest coverage, improve forest quality, and promote nature-based solutions for climate resilience and emissions reduction. [5a8d63b4]
Canada’s Minister of Export Promotion, International Trade, and Economic Development Mary Ng expressed Canada's commitment to support Vietnam's clean energy transition and goals to achieve net-zero emissions. Canada has the expertise to help Vietnam reach its net-zero 2050 targets and wants to be Vietnam's partner in powering a clean and green future. Vietnam has a national strategy on climate change that outlines measures to reduce greenhouse gas emissions by 2050 and has agreed to the Just Energy Transition Partnership (JETP) with Canada and other international partners. The two countries held a workshop entitled 'Towards Net-zero: Canada-Vietnam Experiences Sharing' to deepen collaboration and drive investment in clean and green technologies. [5a8d63b4]
U.S. Ambassador to Bangladesh Peter Haas addressed the Indo-Pacific Business Forum (IPBF) in Dhaka, emphasizing the importance of a sustainable, equitable, and just energy transition to clean and renewable energy resources. He mentioned that Bangladesh has a domestic supply of natural gas, but it is not infinite, and the country needs to focus on renewable and clean energy resources. The U.S. government has been working with the Bangladeshi government, private sector, and international financial institutions to support Bangladesh's clean energy transition. Haas also highlighted some challenges, including integrating intermittent energy resources into national grids, developing cleaner fuel sources like green hydrogen, ensuring access to finance for clean energy technologies, and negotiating regional energy trading agreements. He emphasized that achieving a just energy transition will require contributions from the government, private sector, and civil society. Haas concluded by stating that it will take years to accomplish the energy transition, but it can be accomplished faster through collaboration and knowledge sharing. [4d905d2c]
Singapore has joined forces with the US and Vietnam to boost cross-border electricity trade. The initiative is spearheaded by the Singapore Ministry of Trade and Industry (MTI), the US Department of Energy, and Vietnam’s Ministry of Industry and Trade. The aim is to establish regulatory frameworks, infrastructure, and a supportive ecosystem for regional power interconnectivity. The team aims to expedite the advancement of the ASEAN power grid. The initiative involves knowledge sharing, capacity building, and fostering consensus on subsea cable matters within the region. The US International Development Finance Corporation is poised to invest in the Southeast Asia Clean Energy Fund II (SEACEF) to mobilize approximately S$235.46 million (US$175 million) for projects in Southeast Asia. SEACEF's investments will act as a catalyst for additional financing from other investors in clean power, energy storage, energy efficiency, electric mobility, and grid infrastructure. [26a161a6]
The Australia-funded program Aus4Transport has helped Vietnam develop inland waterways for low carbon transport. The program, which started in early 2018, aimed to increase investments in Vietnam's transport infrastructure and contribute to an enhanced national transport network. It has supported improvements in the sector's capacity to design and develop high-quality projects, provided technical support for project preparation and development, and helped secure access to high-quality financing for priority transport infrastructure. Aus4Transport has also supported capacity building at the transport ministry and its institutions and agencies. The program will be wrapped up at the end of June 2024. [96d6d268]
Southeast Asian governments are looking to the private sector to help achieve their climate change goals. The region is facing intense heatwaves and rising emissions, and ASEAN countries have committed to Nationally Determined Contributions (NDCs) under the Paris Agreement. However, the annual clean energy investment required in ASEAN is estimated to be US$150 billion by 2030, and the region has only received US$56 billion in climate finance between 2000 and 2019. To bridge this gap, private finance is expected to play a significant role, increasing from 44% of the total requirement in 2021 to 75% by 2030. However, mobilizing private capital faces challenges such as credit losses for banks transitioning to a net-zero carbon economy, reliable data for assessing climate risks, transparency and standardization in disclosure norms and regulations, and the need for higher risk-adjusted returns for investors in climate technologies. ASEAN is taking initiatives to attract private finance, including the launch of Just Energy Transition Partnerships (JETP) and the Global Blended Finance Alliance. Regulators are introducing taxonomies and disclosure requirements to facilitate funding towards sustainable sectors. Collaboration across governments, multilateral organizations, regulators, and private firms is crucial to attract investors. Southeast Asia can learn from examples of collaboration in Brazil and the early retirement plan for the Cirebon-1 Coal plant in Indonesia. The region also aims to become the primary trading hub in the Asia-Pacific region for voluntary carbon markets. Southeast Asian countries must engage with the private sector to ensure a sustainable future. [ff9d3de4]
Singapore can use its early mover advantage to establish approaches to the green electricity trade and inspire positive change regionally. Southeast Asia is the world’s fourth-largest consumer of energy, and Singapore is influential as a hub of electricity trade innovation and progress. Singapore's Energy Market Authority has set a target of importing 4,000 megawatts (or about 30 per cent) of Singapore’s electricity by 2035. Singapore’s agreements for alternative electricity imports from Cambodia, Vietnam, and Indonesia are helping spur momentum on innovations to regional power trade. Expanding interconnections through regional power trade could generate major savings for ASEAN and reduce the land-use footprint of power projects. Singapore can inspire and support a regional conversation about a greener ASEAN Power Grid by exploring standard-setting, building consensus, and providing technical training programs. [4edd1d66]