COP28 update: Viet Nam outlines $15.5 billion funding strategy for coal reduction

COP28 update: Viet Nam outlines $15.5 billion funding strategy for coal reduction
Image by Nguồn/VGP

Last Friday (Dec. 1), Vietnamese Prime Minister Pham Minh Chinh said his country has worked with G7 governments and lenders to develop a strategy for using billions of dollars in approved funding to reduce dependence on coal. The announcement was made at the launch of the Resource Mobilization Plan with EU partners during the COP28 international climate meeting in Dubai. 

The Resource Mobilization Plan is also an implementation of the political agreement to establish a Just Energy Transition Partnership (JETP) between Viet Nam and the International Partnership Group (IPG).

The announcement was made in the presence of senior officials, including the President of the European Commission (EC), Ursula von der Leyen, ministers, and senior representatives from several IPG member states, including the UK, Japan, Germany, Italy, Canada, Denmark, and the Vice-Chair of the Glasgow Financial Alliance for Net Zero (GFANZ). The event was also attended by leaders of several international organizations, financial institutions, and funds.

Under an agreement reached with foreign investors last year, Viet Nam will receive $15.5 billion over three to five years, mostly in the form of commercial loans at market rates. The fund is part of the Just Energy Transition Partnership (JETP), a program developed by rich countries to help developing countries reduce coal use more quickly to combat climate change. Countries such as South Africa, Indonesia, India, and Senegal have also joined the JETP agreement.

In his speech, the Vietnamese Prime Minister emphasized that a just energy transition is key to his country's strategic direction in national energy development. With a target of zero net emissions by 2050 and a focus on people-centered sustainable development, Viet Nam has taken drastic and ambitious measures to accelerate the energy transition. 

He specifically highlighted 12 concrete measures, including the establishment of various policies, green planning, emission reduction, and renewable energy development projects. One of the latest initiatives is the implementation of a project to develop 1 million hectares of high-quality, low-emission rice.

He also emphasized the need for a people-centered global approach and international cooperation based on equality and mutual benefit. On this basis, Prime Minister Chính encouraged relevant parties to quickly reach an agreement to provide US$15.5 billion worth of support for innovative projects. The goal is to accelerate Viet Nam's equitable energy transition and make a significant contribution to ensuring a prosperous future through economic growth, independence, and energy security for Viet Nam.

With the announcement of the Resource Mobilization Plan, Viet Nam has taken the first step in implementing the JETP. This step has a significant impact on the implementation of Viet Nam's national energy development strategy and the achievement of the Global Declarati

Thank you for reading until here