Collaboration and energy transition remain as the focus of climate transition journey
Vietnam has had milestones in climate transition journey in the past two years, from the country’s Net Zero commitment made at COP26 to its National Climate Change Strategy, of which collaboration and energy transition remain as the focus of this journey, Mr. Tim Evans, CEO of HSBC Vietnam shared at Summit: 3P Green Impact held on August 2.
According to Mr. Evans, collaboration is key. Collaboration among individuals, businesses, organisations, sectors and governments is crucial for achieving ambitious climate targets. Second, energy transition is fundamental. Net zero requires a thoughtful approach to the responsible early retirement of coal-fired power plants, while increasing electricity supply to meet growing demand, through new clean renewable sources.
JETPs are multilateral financial agreements, bringing together G7 countries with financial institutions and national governments, to accelerate the phase-out of coal, in a way that addresses social consequences. In 2022, Vietnam signed a JETP agreement with the International Partners Group which consists of developed countries who will provide half of the amount on offer at $7.75 billion for the country to transition to green energy. Private sector finance, led by the Glasgow Financial Alliance for Net Zero (GFANZ), has pledged to mobilise at least that amount. This will help bridge the investment gap and put billions behind Vietnam’s transition.
Ngoc Lan
