Vietnam’s $15.5 Billion Investment Plan for Clean Energy Transition to Be Revealed at COP28

The detailed blueprint outlining how Vietnam intends to allocate $15.5 billion for its shift towards cleaner energy has been officially concluded and is scheduled to be unveiled during the upcoming COP28 climate conference in Dubai. Mark George, the climate counselor at the British Embassy in Hanoi, shared that extensive coordination with crucial Vietnamese ministries took place over several months to finalize the specifics of how the allocated funds would be utilized. The culmination of these efforts resulted in the completion of the definitive plan on Thursday.

No specifics of the plan were disclosed by George. The United Kingdom, serving as co-chair of a coalition of nine affluent industrialized nations, has committed to allocating the $15.5 billion. This financial support aims to assist Vietnam in moving away from its dependence on environmentally detrimental coal power and facilitating a more rapid transition to renewable energy. This initiative is part of the Just Energy Transition Partnership (JETP).

“This marks a significant milestone,” emphasized George during a panel discussion organized by the UK-Vietnam Joint Economic and Trade Committee. The discussion focused on the opportunities for both nations following Britain’s formal inclusion in an Asia-Pacific trade alliance comprising Japan and 10 other countries.

In the earlier part of this year, Vietnam unveiled a national energy plan with the ambitious goal of increasing the maximum power generation capacity to approximately 150 gigawatts by 2030, more than doubling the current capacity. The plan entails a significant departure from heavily polluting coal and includes a commitment to refrain from constructing new coal-fired plants beyond 2030. Furthermore, it advocates for the expanded utilization of domestic gas and imported liquefied natural gas (LNG), constituting around 25% of the overall generating capacity. Concurrently, hydropower, wind, solar, and other renewable sources are projected to contribute to nearly 50% of the total generating capacity by 2030.

Tang The Hung, the deputy director-general of Vietnam’s Department of Energy Efficiency and Sustainable Development, emphasized during the panel on Friday that securing “significant support” from the international community is essential to enable Vietnam to successfully implement its plan.