Vietnam’s Just Energy Transition Partnership: a background report
December 14th, 2022, Viêt Nam with G7 countries plus Denmark and Norway issued a political declaration to establish a Just Energy Transition Partnership. This nonbinding agreement aims to mobilize at least 15.5-billion-USD over the next 3 to 5 years, half as private finance and half as public sector finance. To be prepared by November 2023, the Resource Mobilization Plan (RMP) should support Vietnam’s green transition, including these quantified objectives: peaking electricity sector emissions at 170-MtCO2e in 2030; peaking the coal-fired power generation capacity at 30.2-GW; producing 47% of electricity from renewable sources in 2030. This report aims to establish a common understanding to ease the next step: the RMP negotiation.
The story is about a group of rich countries seeking to help a middle-income country switch to renewable energy. It starts with a reminder of Vietnam’s energy transition context, which has shown impressive gains in the last four years. It then describes the JETP mechanism as a country platform, reviewing the South Africa pathfinder to introduce the Vietnam case, before examining how JETP fit in the international 3nance and climate diplomacy context. Next, it analyzes the two sides of the deal: the pledge to increase the public and private financial Bows into Vietnam’s energy sector and the promise to boost Vietnam’s GHG emissions reductions. Afer discussing Justice, Technology Transfer, and Finance, the report concludes with a summary of the vision implicit in the JETP political declaration.
A comprehensive bibliography on Vietnam’s JETP, the verbatim JETP Political Declaration, excerpts from Vietnam’s COP26 implementation plan, and our interview protocol including a detailed vision for the JETP implementation are annexed.