Vietnam seeks global support to meet energy commitments at COP26

Right after the COP26 meeting in the United Kingdom last November, his ministry started working to update the draft Power Development Plan VIII in a way that continues reducing coal-fired power generation and strongly developing gas-fired power generation, especially the liquefied natural gas (LNG)-fired one, so as to guarantee energy security and increase the capacity of using electricity from renewable energy sources, Dien said.

He added the government is also moving towards promoting renewable energy, especially wind and solar power, and balance power generation sources among regions.

Regarding the high financial demand to carry out Power Development Plan VIII towards net zero emissions by 2050, Sharma suggested funding be mobilised from public and private sources to invest in green infrastructure projects so as to realise the commitment made at the UN conference.

Minister Dien asked Sharma to help electricity businesses of Vietnam to access British and international financial sources, a news agency reported..

Vietnam also wants to receive technical assistance from developed countries to make plans on reducing the development of coal-fired power plants, control greenhouse gas emissions in the industry and trade sector, improve the country’s capacity for implementing carbon evaluation mechanisms under the Paris Agreement on climate change, and enhance its capacity to carry out a competitive electricity retail market, Dien added.

The country needs more attention to green and low-carbon economic development to sustainably attract foreign direct investment (FDI), experts say. FDI inflow into Vietnam continued in January this year, with $2.1 billion, up by 4.2 per cent year on year.

A recent survey by the Japan External Trade Organisation (JETRO) showed that 55.3 per cent of the Japanese firms in Vietnam interviewed said they plan to expand their operations in the next one - two years.

But to boost economic growth and attract FDI sustainably and effectively, the country should pay more attention to digital transformation and green technology application to production and business activities, which will help manage climate change impacts and adapt to this global phenomenon, World Bank country director for Vietnam Carolyn Turk suggested.