Vietnam Clean Energy Forum looks towards carbon neutrality

In his opening remarks, deputy head of the Climate Change Department under the Ministry of Natural Resource and Environment Pham Van Tan said that to realise its commitments of bringing net emissions to zero by 2050, and reducing 30% of methane emissions by 2030 compared to 2020 announced at the 26th United Nations Climate Change Conference of the Parties (COP26) last year, Vietnam should shift to use renewable energies such as wind, solar and gas power, and other low-carbon sources.

Therefore, the forum was a good chance for participants to discuss shortcomings, challenges and also opportunities for the development of clean energy in Vietnam.

Hoang Trong Hieu, Deputy Chief of Office of the National Steering Committee for Electricity Development, stated that policies encouraging renewable energy development have paid off. Vietnam’s renewable energy sources have reached about 20.7 GW, accounting for more than 27% of its total power capacity.

However, the strong development of wind and solar power projects has led to an imbalance of transmission sources by region because these projects are mainly developed in the central and southern regions. In addition, the implementation of clean energy projects currently is facing many difficulties related to planning, construction investment, site clearance, and financial mechanisms.

Pham Thi Thanh Tung, Deputy Director of Credit for Economic Sectors Department under the State Bank of Vietnam, said that by the end of 2021, credit balance for green projects topped VND441 trillion (US$19.3 billion), accounting for 4.2% of the total outstanding loans of the economy, up 32.5% compared to 2020. In particular, credit balance for renewable energy projects surpassed VND212 trillion, or 47% of that of green projects. Credit institutions face many difficulties in handling dossiers related to renewable energy projects because they must take into account the project's efficiency.

To solve the problem, Vietnam needs a breakthrough policy such as the formation of a renewable energy fund to create favourable conditions for investors.

Within the framework of the forum, Top 10 prestigious IPP (independent power project) investors in Vietnam in 2021 and TOP 10 Enterprises with the best solar, wind power technologies, equipment, and services in Vietnam 2021 were honoured.