Kick off the cooperation to build a net-zero roandmap for energy SOEs in Vietnam

In November 2021 at COP26, Prime Minister Pham Minh Chinh announced strong commitments to tackle climate change. In which, the commitment to net-zero emissions by 2050 and joining the methane commitment sent a strong signal to the international community, opening the door for global collaboration and assistance in terms of both finance and know-how transfer, especially from developed countries for low-emission development and implementation of the Paris Agreement, towards the net zero by 2050.

In order to achieve those pledges, energy SOEs will play a crucial role in energy transition towards net zero target, leading the other enterprises in energy sector to implement energy transition measures resulting in cleaner and more sustainable outcomes. In light of its commitment to a low carbon economy, the current energy sector governance and policy framework as well as the financial costs and investment needs in the energy sector, the Commission for Management of State capital at Enterprises (CMSC) and the Southeast Asian Energy Transition Partnership (ETP) cooperate with the purpose to support and strengthen energy state-owned enterprises towards coal transition, better governance, profitable and sustainable business while facilitating a transparent and sustainable development of energy market and renewable energy. The kick-off on July 19th is the first and important step for CMSC and energy SEOs to partner with other relevant agencies in Vietnam and international entities to implement Vietnam’s commitments at COP26.

Mrs. Sirpa Jarvenpaa, Fund Director of ETP

Mrs. Sirpa Jarvenpaa, Fund Director of ETP, introduced briefly about the ETP. “ETP is a multi-stakeholders initiated by the Governments of France, Germany, UK, and other organizations such as CIFF, IKF, Sequoia Climate Fund among others to accelerate the energy transition”, she said.

At the meeting, consulting agencies led by the Vietnam Initiative for Energy Transition, Economica and NHQuang law firm introduced the overview of research, implementation activities, international practices and modeling methodology for scenarios of coal power plants transition, evaluating the financial and legal impacts on the roadmap.

*Quotes:

Mr Dinh The Phuc – Director General, Department of Energy, Commission for Management of State capital at Enterprises

Mr Dinh The Phuc – Director General, Department of Energy, Commission for Management of State capital at Enterprises (CMSC)

“From the end of 2021 until now, through meetings exchanging and discussing in the spirit of openness and sharing, CMSC has joined with the Southeast Asian Energy Transition Partnership (ETP) to cooperate in supporting energy State-owned Enterprises (SoEs) develop a roadmap towards net zero emissions. This is an extremely valuable and essential support to (SoEs) in the process of researching and shifting towards sustainability, improving governance capacity, enhancing business efficiency, building a roadmap for coal-fired power transition, and at the same time creating conditions to promote transparent and reliable conditions of the clean energy market.”

Mrs. Sirpa Jarvenpaa – Fund Director, Southeast Asian Energy Transition Partnership (ETP)

“ETP is pleased to partner with the Department of Energy of CMSC and kick-off this important project. The CMSC-ETP partnership will help to develop and, over the next years, realize a net-zero roadmap for the CMSC to help decarbonize the energy sector, improve governance, while facilitating a transparent and a sustainable development of energy market and renewable energy.”

Mrs. Ngo To Nhien, Executive Director, Vietnam Initiative for Energy Transition

Mrs. Ngo To Nhien, Executive Director, Vietnam Initiative for Energy Transition (VIETSE):

“Vietnam Initiative for Energy Transition - VIETSE leading consulting alliance is pleased to receive the support of the Commission for Management of State Capital at Enterprises and the Energy Transition Partnership. We will make every effort to successfully implement this consulting package.

We realize that the emission reduction roadmap in Vietnam's electricity sector needs to be comprehensively and multi-dimensionally assessed including technical, financial, social and legal aspects. The results of the collaborative efforts between CMSC and ETP will play an important role for Vietnam's State-owned energy corporations to contribute to the roadmap towards carbon neutral.”