The ambitious Just Energy Transition Partnership (JETP) agreement was reached between Prime Minister Pham Minh Chinh and the leaders of G7 nations plus Denmark and Norway at the EU – ASEAN Summit in Belgium on December 14.

The initial JETP program will raise $15.5 billion from public and private financing over the next three to five years to support Vietnam’s green transition, halt investment in coal-fired power plants and increase share of electricity from renewable sources.

The Partnership will support Viet Nam in working towards a number of ambitious new targets:

  • Bringing forward the projected peaking date for all greenhouse gas emissions in Viet Nam from 2035 to 2030.
  • Reducing peak annual power sector emissions by up to 30 percent, from 240 megatons to 170 megatons, and bringing forward the peaking date by five years to 2030.
  • Limiting Vietnam’s coal capacity to 30.2 gigawatts down from a current planning figure of 37 gigawatts.
  • Accelerating the adoption of renewables so that renewable energy accounts for at least 47 percent of electricity generation by 2030, up from the current planned generation share of 36per cent.

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 Viet Nam 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 mobilise 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).

Over the next 12 months, Viet Nam will work with the support of partner countries to develop and adopt the Viet Nam JETP Resource Mobilisation Plan, which will enable the implementation of the JETP funding and strategy.

As a rapidly growing economy, Viet Nam’s JETP will demonstrate that economic growth can be decoupled from fossil fuel energy consumption.

A just transition will not only help Viet Nam meet climate goals but also secure a resilient and prosperous future for its people, reducing the impacts of pollution and supporting economic growth and new jobs.

The JETP will advance the political cooperation between Vietnam and G7 as well as Nordic countries even further, expanding economic relations relevant to green growth and strengthening cooperation on addressing global challenges and solutions on green transition and climate change.

On this occasion, Prime Minister of Norway Jonas Gahr Støre said:

“Norway is proud to be part of the Just Energy Transition Partnership (JETP) and support Viet Nam’s effort to speed up the energy transition. We believe this can mobilize much needed private capital to accelerate the ambitious transition from coal to renewable energy.”

For more information, visit: https://ec.europa.eu/commission/presscorner/detail/en/statement_22_7724?fbclid=IwAR2itBBq6ek-YGmwWOXG74wQMQXvCT6nNq-9oFDw4w3jSveug9r5rkezfWE