Vietnam to receive $15.5 billion fund to achieve its 2050 net zero goals

Vietnam has joined hands with the global partners for financing to achieve its 2050 net zero goals.

Under a new Just Energy Transition Partnership (JETP), the developed countries have agreed to mobilise $15.5 billion in public and private finance over the next 3-5 years.

The agreement was inked between Vietnam and countries like the UK, France, Germany, US, Italy, Canada, Japan, Norway and Denmark and the EU.

According to the authorities, the “initiative seeks to help Vietnam transition away from fossil fuels to clean energy, supporting a new target to accelerate the peaking of greenhouse gas emissions to 2030, from 2035 previously.”

The JETP fund includes $7.75bn from rich countries, the Asian Development Bank and the International Finance Corporation, while rest will be generated by private financial institutions.

This comes as Vietnam aims to "reduce peak annual power sector emissions by up to 30pc, to 170mn t of CO2 equivalent (CO2e) from 240mn t CO2e, and bring forward their peaking date by five years to 2030. “

In terms of renewables, the country aims to increase the share of renewable energy including wind, solar and hydroelectricity power to 47pc by 2030.

Now, Vietnam will design and work on a plan towards the implementation of the JETP funding and strategy.