In an indicator in the Southeast Asia’s Green Economy 2024 report, which was just published by Bain & Company, GenZero, Standard Chartered, and Temasek, Vietnam moved up five points.
The country has set high emissions objectives for 2030—781 metric tons of carbon dioxide equivalent, up from 458 in 2020—and a non-binding net-zero goal by 2050.
The nation has made strides in lowering emissions per person to 4.7 tons, increasing the amount of forest land under forest cover, halting the loss of trees by 14%, and reaching a 43 percent renewable energy share in power generation.
The electricity Development Plan VIII (PDP8), which was unveiled in May 2023, provides a detailed plan for gradually eliminating coal use by the year 2050, while also boosting the amount of solar, wind, and hydroelectric electricity that is added to the national grid. With aspirations to raise $15.5 billion in funding, the Just Energy Transition Partnership (JETP) emphasizes the value of public-private partnership in quickening the green transition.
In addition, the nation is creating carbon pricing tools and an emissions trading system, both of which should be operational by 2028. This program, which is being run by the ministry of natural resources and environment’s department of climate change, is a vital step in the direction of lowering greenhouse gas emissions and developing a market-driven strategy for cutting carbon.
Vietnam had a 79-percent decrease in private green investments in 2023, primarily because of the high cost of capital—between 10 and 12 percent—and the delays in carrying out important national road maps.
The government was only able to collect $200 million in private financing last year, despite the fact that it needed a $34 billion capital investment for its green transition.
Additionally, the nation does not have voluntary carbon market guidelines or a carbon market register. According to the analysis by the private companies, despite the implementation of many initiatives such as the development of a carbon tax and incentives for electric vehicles, solar electricity, and green buildings, there are still difficulties in attracting adequate private investments.
Large-scale investments have been hampered by the adoption of important policies like JETP and PDP8 being delayed.
In comparison to its regional counterparts, the nation provides fewer financial incentives and subsidies for decarbonization. The analysis pbserved that business desire to invest in green technologies is impacted by this lack of support.
Vietnam is changing its strategy in reaction to these difficulties. It is providing incentives for the construction of green buildings and electric vehicles, as well as upgrading its feed-in tariffs for wind and solar plants.
