Diagnostic study on Net-Zero for energy sector in Vietnam kicked off

The kick-off workshop “Diagnostic study on Net-Zero scenarios for the energy sector in Vietnam” took place recently in Hanoi. The workshop was to convey to major stakeholders of the Vietnamese energy sector the objectives and activities of the study as well as to stimulate the engagement of the relevant stakeholders in the project implementation.

Towards Net Zero by 2050

With its own resources, along with the cooperation and support from the international community, Vietnam will develop and implement strong emissions reduction measures to achieve net-zero emissions by 2050, as announced by Prime Minister Pham Minh Chinh at COP26 in November 2021.

Massive investments in energy supply and consumption profoundly transforming all sectors, including transportation and industry, labour transformation, energy security, stranded assets are significant challenges to achieve a just transition to net zero emissions (Net-Zero) by 2050.

Finding the optimal investments and combinations of energy resources and technologies to ensure decarbonization of the entire economy by 2050, while considering current and future policies, energy security challenges, and economic development of the country, requires a dedicated and analytical process and a solid engagement of the stakeholders.

The objective of the “Diagnostic study on Net-Zero for the energy sector in Vietnam” is to assess the transition of Vietnam’s energy sector to net-zero scenarios by 2050. It will support the Government of Vietnam to define how to reach its climate commitments, and to realize the National Energy Master Plan for 2021-2030 period, vision to 2050. It is also expected to be relevant for the Just Energy Transition Platform (JETP) program.

The research is carried out by domestic and international consulting firm, consisting of E4SMA – ITALY, VIETSTAR – VIETNAM and Energy Modeling Lab (EML) – DENMARK, of which E4SMA and EML are hailed for their expertise in energy modeling and climate change for decision making, and VIETSTAR is well recognized for its experience in stakeholder cohesion and local expertise and knowledge. It is funded by the Southeast Asian Energy Transition Partnership (ETP).

Interactions and contribution by stakeholders

The study will be carried out in close collaboration with relevant stakeholders of the Vietnamese energy sector such as the Ministry of Industry and Trade (MOIT); the Ministry of Natural Resources and Environment (MONRE); the Committee for Management of State Capital at Enterprises. (CMSC); Electricity of Vietnam (EVN); Vietnam Oil and Gas Group (PVN), Vinacomin-TKV, as well as the international stakeholders present in Vietnam. The results of the study will be disseminated to all government agencies.

Held on February 28, 2023 in Hanoi, the workshop was attended by Ms. Ngo Thuy Quynh - Deputy Director of the Oil, Gas and Coal Department - Ministry of Industry and Trade, Mr. Jaya Ratnam - Ambassador Extraordinary and Plenipotentiary of Singapore to Vietnam, Representatives of Vietnam Oil and Gas Group (PVN), Electricity of Vietnam (EVN), Power Generation Corporation 1,2,3, Delegation of the European Union to Vietnam, World Bank, Vietnam-Denmark Energy Transformation Partnership Program, British Embassy in Vietnam, French Development Agency (AFD)…

Ms. Ngo Thuy Quynh, Deputy Director of the Oil, Gas and Coal Department of the Ministry of Industry and Trade, shared: “Oil, Gas and Cold Department will support the study and function as a focal point connecting with key stakeholders in energy sector of Vietnam.”

“The study provides robust evidence-based analysis and facilitates initiatives to support policy development on energy transition, as well as contributes to the development of a competitive energy market,” said Ms. Sirpa Jarvenpaa – Director of the ETP.

“Net-zero study outcome plays a very important role, which will have an impact on decision-making of policy makers and energy enterprises. Bilateral cooperation between Vietnam and Singapore has witnessed important achievements in recent years. Singapore businesses are also greatly interested in the transformation that Vietnam is moving towards in the Net-zero roadmap,” said Ambassador Extraordinary and Plenipotentiary of Singapore to Vietnam.

Presenting the project approach, Mr. Maurizio - CEO of E4SMA, the international consulting firm leading the study, said: "The research is targeted to provide in-depth assessment of net-zero scenarios for the energy industry with comprehensive analysis of technical, financial and institutional impacts of the transition from fossil fuels to renewable energy production in Vietnam; it will strengthen policy dialogue and strategic commitment on net-zero energy transition by informing on technology development, on impacts of policies to implement the low-cost carbon mitigation options, and on total cost and financial needs to achieve low carbon targets.”

Ms. Pham Thu Hang, CEO of VietStar - the local consulting firm in charge of stakeholder engagement, said: “Researchers will closely work with the stakeholders of the energy sector of Vietnam to ensure that the research is consistent with the reality and priorities of the stakeholders. Support and insights by stakeholders play a vital role in the project success."

Stakeholders expressed their willingness to support the study by sharing data and perspectives, along the study, about the technological transformation of the energy sector and the policies needed to reach the Net Zero target.