Vietnam

On 14 December 2022, the International Partners Group (IPG) and Vietnam announced a Just Energy Transition Partnership (JETP), which aims to unlock financing to support Vietnam with a just and sustainable energy transition. In collaboration with the Department of Climate Change (DCC) of the Ministry of Natural Resources and Environment (MONRE), ETP has been engaged in supporting DCC's preparatory work for Vietnam's JETP.

Building on ETP's relations with DCC, and responding to a formal request letter, ETP promptly assembled a diverse consultant team to support the DCC. Through thorough research and multiple stakeholder engagements, ETP's consultant team conducted several studies, compiled policy briefs, and provided inputs to DCC's JETP efforts.

Deliverables Provided: As part of our collaboration, ETP delivered several important resources to the DCC for JETP preparation:

1. Draft JETP Resources Mobilization Plan (RMP) outline: A comprehensive framework to guide resource mobilization for an effective energy transition.
2. Analysis of JETP experience in Indonesia and South Africa: A report highlighting key insights from Indonesia and South Africa's energy transition journeys, relevant to Vietnam's context.
3. Policy briefs: We developed concise policy briefs on various aspects of the JETP:
1. Historical experiences with fossil to renewable electricity transitions.
2. Background and legal concerns for JETP development and implementation in Vietnam.
3. Financing the JETP RMP in Vietnam.
4. Energy transition in JETP development and implementation in Vietnam.
5. Just and equitable transition in JETP development and implementation.

* Please note that these products, while reflecting the views of our consultants, do not necessarily represent the official stance of the DCC or ETP.*

ETP is grateful to the DCC for the opportunity to engage in such meaningful work and remains committed to offering further support to the JETP and the wider energy transition process. We also acknowledge the work of our consultants who worked tirelessly to deliver this work against tight deadlines.

The study aims to evaluate the effects of the Carbon Border Adjustment Mechanism (CBAM) on various aspects of Vietnam's economy, such as export products, energy transition, and the implementation of Nationally Determined Contributions (NDCs). It also seeks to analyze how CBAM impacts the establishment of a domestic carbon market and the design of a carbon tax system in Vietnam. Based on the findings, the study will provide recommendations to minimize negative impacts and develop a roadmap for the application of a carbon tax system in Vietnam.

The project is a part of ETP's program, in collaboration with the Department of Oil, Gas, and Coal, Ministry of Industry and Trade, to support the transition of the coal, gas, and oil sectors in Vietnam towards a clean energy future while prioritizing people's well-being. The project aims to identify technical, social, and policy challenges to transition towards renewable energy and produce practical roadmaps to address them. Additionally, the project intends to devise strategies to repurpose coal assets effectively and develop comprehensive social protection packages to support affected workers and communities for social stability in Vietnam. The project aligns with Vietnam's National Energy Master Plan and its commitments to the Paris Agreement.

An in-depth study and survey will be conducted to develop the National Green Cooling Program. The aim of the program is to encourage the adoption of high energy efficiency and low carbon technologies in the cooling sector, resulting in increased energy savings. This initiative will contribute to achieving sustainable development goals and national energy efficiency targets.

The Assignment aims to research and propose an auction mechanism for power source development. The main objectives include analyzing the legal context and procurement modalities for selecting power generation project developers in Vietnam, identifying legal gaps and recommending improvements for developing renewable energy projects, identifying legal conditions for implementing an auction mechanism for power generation and grid connectivity development, and providing technical comments for the development of the auction mechanism.

The collaboration between ETP and CMSC aligns with the Government of Vietnam's dedication to promoting renewable energy and reducing greenhouse gas emissions, in accordance with the net-zero target set for 2050. ETP's assistance will aid CMSC in managing state-owned energy enterprises, with a focus on transitioning away from coal, enhancing governance, achieving profitability and sustainability, and promoting a transparent and sustainable energy market that supports renewable energy development.