On 31 August 2023, the Deputy Prime Minister Tran Hong Ha passed the Decision No. 1009/QD-TTg on the Approval for the Implementation Plan of the Political Declaration on establishing the Just Energy Transition Partnership (Decision 1009). The main goals of the implementation plan under Decision 1009 are to implement the Just Energy Transition Partnership (JETP Declaration), to promote the development of renewable energy to achieve net zero greenhouse gas emissions by 2050, and to ensure the efficient use of energy. With regard to a more detailed set of goals and relevant tasks to be carried out of the Implementation Plan, Decision 1009 also highlights the following:
(i) The reception and efficient use of partnership with international partners in terms of technology transfer, governance, training for officer-in charge and financial provision for the implementation of the JETP Declaration;
(ii) By 2030, a suitable legal framework to attract investors and businesses to engage in the transition of the JETP Declaration is expected. A resource mobilization plan to implement the JETP Declaration with pilot projects related to the JETP Declaration is also projected to be developed by relevant units. The mentioned resource mobilization plan is expected to cover international financial support and technology transfer to promote the conversion from coal-fired power and fossil energy to clean energy, and develop renewable and new energy forms;
(iii) The development of the smart grid and advanced and modern infrastructure facilities for production, transmission, storage, distribution and management of electricity is also mentioned as an important part for the implementation of JETP Declaration. From January 2024 to January 2026, it is a priority to involve the investments of private entities to contribute to the development of the grid, the tasks to carry out this goal include (iii1) determining the scope and structure for investment of private entities into the grid; (iii2) promoting the development of the legal framework to facilitate the investment into the gird; and (iii3) promoting the development of cross-border transmission and offshore transmission.
(iv) One of the main tasks outlined in the plan is switching from coal-fired power plants to clean energy sources, along with creating an ecosystem for renewable energy businesses and services, encouraging the production of electricity from biomass, garbage, and solid waste to utilize by-products from agriculture and forestry, creating and implementing regulations on the rate of renewable energy for electricity distribution companies, and creating a market for renewable energy credits.
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Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.