JETP Vietnam

In December 2022, Vietnam and the International Partners Group (IPG) - led by the European Union and the United Kingdom and including the United States, Japan, Canada, Denmark, France, Germany, Italy and Norway - announced the third ever JETP. The JETP is a commitment from the IPG to mobilise an initial USD 15.5 bn from public and private finance over the next three to five years, to support Vietnam in achieving its net zero 2050 target, as set out in its National Strategy on Climate Change to 2050. Of the total investment, half will be contributed by the IPG countries. The remaining USD 7.75 bn will consist of private finance, contingent on the mobilisation of the public sector finance, and will be facilitated by the Glasgow Financial Alliance for Net Zero (GFANZ).

The Vietnamese JETP aims to accelerate the planned decarbonisation of Vietnam's power sector, bringing forward its target of peaking emissions from electricity generation to 2030, capped at 170 MtCO2. To achieve this, Vietnam will reduce its pipeline for coal-fired power plants, limiting coal-fired generation capacity to a maximum of 30.2 GW by 2030 and setting out a pathway to phase-out unabated coal generation thereafter, through halting investment in coal-fired power plants and negotiating the closure of old, inefficient plants. The JETP also sets out to accelerate the adoption of renewables, reaching a minimum share of 47% renewable electricity generation by 2030. Moreover, the Political Declaration emphasises a just transition in line with the ILO's Declaration on Fundamental Principles and Rights at Work to increase access to affordable energy, address the needs of affected workers and communities and engage with all relevant stakeholders. This includes, in particular, the development of educational, vocational training and re-skilling programmes for those affected by the transition.

The Political Declaration on the JETP sets out a timetable to publish a JETP Resource Mobilisation Plan by November 2023, which identifies relevant new investment requirements and opportunities as well as measures to facilitate the deployment of support and overcome barriers to delivering Vietnam's just energy transition. Vietnam has established a Secretariat to implement this work. The Vietnam JETP Secretariat is led by the Ministry of Natural Resources and Environment together with the Ministries of Industry and Trade, Planning and Investment, and Finance. The Secretariat has established four Working Groups, the General Group, the Institutions, Policy, and Investment Group, the Technology and Energy Group, and the Finance Group.

The Further Resources portal includes key resources and events related to Vietnam's JETP, including analysis, commentary and official documents to enable readers access to a broad range of relevant materials to inform and shape the direction of Vietnam's energy transition.