Introduction

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JETP

The Just Energy Transition Partnership (JETP) is a long-term, ambitious partnership to support Viet Nam's low-emission and climate resilient development, as well as to support Viet Nam to accelerate the just transition and decarbonisation of the electricity system, and develop new economic opportunities to support Viet Nam's transition towards net zero future.

According to the Political Declaration, the IPG agreed to

“mobilise an initial amount of at least $15.5bn over the next three to five years through a combination of appropriate financial instruments, which should not divert critical development assistance away from existing development funding to support the needs of Viet Nam's just energy transition in accordance with the national framework of public debt and external debt management. Working closely with the Viet Nam Government, IPG members will mobilise $7.75bn of public sector finance which should be on more attractive terms than Viet Nam could secure in the capital markets. Working closely with the Vietnamese Government and the IPG, the GFANZ Working Group members will work to mobilise and facilitate at least $7.75bn in private finance, subject to mobilisation of the catalytic public sector finance by the IPG members.”

The JETP targets, as articulated in the Political Declaration include:

“Accelerate the decarbonisation of its electricity system from the current net-zero planning peak of 240 MtCO2eq by 2035 with international support (down from 280 MtCO2eq before COP26) towards reaching a peak of no more than 170 MtCO2eq emissions from electricity generation by 2030 enabled by meaningful and strong support from IPG partners in terms of finance as outlined under paragraph 18 and all technologies to scale up the deployment of renewable energy and the management of clean power systems.

Reduce Viet Nam’s project pipeline for coal-fired generation towards a peak of 30.2 GW, as well as providing a credible and ambitious emission reduction pathway to phasing out unabated coal-fired power generation

Accelerate the deployment of renewable energy and to develop the technical expertise to support and manage a grid increasingly powered by variable renewable energy, with the aim of enabling Viet Nam to sustain a reliable grid and move beyond the current planned figure of 36% towards at least 47% of electricity generation coming from renewables including wind, solar and hydroelectricity power by 2030, enabled by international support”

Objectives

Objective of the Scheme for implementation of the JETP Declaration:

Successfully implement the JETP Declaration by promoting renewable energy development, energy saving and energy efficiency, contributing to the goal of net zero emissions by 2050; develop the energy industry across sub-sectors, with synchronous and advanced infrastructure to ensure national energy security and development goals, with a focus on an energy transition that is equitable; and effectively use the support of international partners in technology transfer, governance, human resource training and finance for the implementation of the JETP Declaration, contributing to the realization of Viet Nam's National Energy Development Strategy and the Global Coal to Clean Power Transition Statement. [link to Scheme at Section Documents]

Milestones

Viet Nam committed to "…develop and implement strong measures to reduce greenhouse gas emissions with its own resources, along with the cooperation and support of the international community, especially developed countries, both in terms of finance and technology transfer, including implementing mechanisms under the Paris Agreement, to achieve net zero emissions by 2050" (Quote from Prime Minister Pham Minh Chinh's speech at the 26th Conference of the Parties (COP26))

The National Steering Committee to implement Viet Nam’s COP26 commitments was established (Decision No.2157/QĐ-TT).

The International Partners Group and Viet Nam announced the Political Declaration on establishing the Just Energy Transition Partnership with Viet Nam (JETP) in Brussels, Belgium.

Secretariat for Implementation of the JETP Declaration was established by Prime Minister (Decision No. 845/QĐ-TTg).

The Scheme for implementation of the JETP Declaration was approved by Prime Minister (Decision No. 1009/QĐ-TTg).

The General Working Group to support the implementation of JETP was established by Minister of Natural Resources and Environment (Decision No. 2515/QĐ-BTNMT)

The Technology and Energy Working Group to support the implementation of JETP was established by the Minister of Industry and Trade (Decision No. 2520/QĐ-BCT)

The Finance Working Group was established by Minister of Finance (Decision No. 2158/QĐ-BTC)

The Institutional, Policy and Investment Working Group was established by Minister of Planning and Investment (1804/QĐ-BKHĐT)

The Resource Mobilisation Plan implementing JETP was launched by Prime Minister of Viet Nam and International Partners Group at COP28.

Participating parties

Transforming energy systems, together.

At the core of JETP Viet Nam is an alliance of like minded countries, international organisations, and multilateral financial institutions.

“… 3. Responding to climate change is the responsibility of the entire political system, of each citizen and the whole society. The Government plays a constructive and leading role; citizens and businesses play a central role and are the subjects of implementation with the effective engagement of socio-political organizations.
4. Implement urgent solutions to reduce vulnerability and enhance resilience to the impacts of climate change; give the highest priority to ensuring safety and livelihoods for people in areas at risk of being severely affected; focus on developing infrastructure to respond to climate change, energy transition based on the potential and advantages of regions.
5. To concentrate resources on responding to climate change, developing financial mechanisms and carbon markets, and promoting investment transition for low-emission economic development; promote the Government’s resources, promote the attraction of resources of organizations, enterprises, individuals, international resources, promote public-private cooperation on the basis of equality, cooperation and mutual benefit…”

(Quote from the Prime Minister’s Decision No. 896/QD-TTg on approval of the National Climate Change Strategy for the period up to 2050)

International Partners Group

[Quote: “Viet Nam, like the UK and the European Union, has committed to net-zero emissions by 2050. And our International Partners Group, that is present here today, has committed to mobilise significant financing to support Viet Nam towards this goal: At least EUR 15.5 billion in public and private finance in the next three to five years. Today, we are a big step closer to kick-starting this transition. We are glad to endorse Viet Nam’s Resource Mobilisation Plan so that Viet Nam can peak earlier, as you just described. Thus, shaving off significant volumes of CO2.”
– Ursula von der Leyen, President of the European Commission, on 1 December 2023 at the launch of the JETP Viet Nam Resource Mobilisation Plan in Dubai, UEA.]

The International Partners Group (IPG) members:

Glasgow Financial Alliance for Net Zero

[Quote: “Viet Nam has great potential to become a regional leader for clean energy. Through public and private collaboration, we can speed up the investment needed for Viet Nam to meet its climate targets, grow its economy, create new jobs, and improve public health all at the same time.” – Michael R. Bloomberg, Co-Chair, GFANZ, and UN Special Envoy on Climate Ambition and Solutions]

The Glasgow Financial Alliance for Net Zero (GFANZ), formed during the COP26 climate conference in Glasgow, is a global coalition of eight independent net-zero financial alliances whose members have committed to support the transition to net zero by 2050 and help achieve the objectives of the Paris Agreement.

The GFANZ Working Group members will work to mobilise and facilitate at least $7.75bn in private finance, subject to mobilisation of the catalytic public sector finance by the IPG members.

Learn more about GFANZ here.

GFANZ JETP Working Group members