Plan approved to realise net-zero emissions goal by 2050

Việt Nam is determined to pursue rapid and sustainable economic growth combined with environmental protection to progress to prosperity.

The Ministry of Natural Resources and Environment has issued a plan for solutions to realise Việt Nam’s commitment to cutting emissions to net zero by 2050 announced at the 26th UN Climate Change Conference (COP26) in the UK in 2021.

The ministry will make amendments to legal documents, including contents concerning Việt Nam’s commitments at COP26, reviewing and perfecting mechanisms, policies, and laws related to the implementation of commitments and international treaties in response to climate change.

It will be also responsible for integrating climate change response into strategies and plans; reviewing and updating development strategies and master plans in line with the goals that Việt Nam committed to at COP26.

Units under the ministry will focus on developing regulations guiding the implementation of the mechanism for exchanging and offsetting carbon credits as well as those on auction, transfer and exchange of GHG emission quotas.

Regarding solutions to reduce greenhouse gas emissions, the ministry will carry out an assessment of mineral reserves serving the production of energy batteries, survey and assess the potential of offshore wind and radiation for renewable energy development and test technology of coal gasification, among others.

Attention will also be paid to researching and piloting solutions to store carbon from major emission sources for a number of potential fields and studying solid waste disposal solutions for generating biomass power.

The Ministry of Natural Resources and Environment will also review and update the national plan on climate change adaptation in 2021-2030, with a vision to 2050; and sketch out tasks for implementing the initiative “UN Decade on Ecosystem Restoration”.

Green growth inevitable choice

Việt Nam is determined to pursue rapid and sustainable economic growth combined with environmental protection to progress to prosperity.

To reach that goal, green growth is the inevitable choice.

According to experts, the path to green growth is not easy as the awareness of the business community toward environmental protection is at an early stage.

A survey conducted by the Việt Nam Chamber of Commerce and Industry (VCCI) revealed that although environmental pollution has seriously affected production and business activities, enterprise comprehension of environmental regulations remains modest. Only 31.8 per cent of private enterprises said they understood environmental regulations, but up to 68 per cent of enterprises said they were negatively affected by climate change.

There is a lack of human resources in Việt Nam with adequate knowledge of environmental laws and regulations. In particular, investment in green production and operations in an environmentally friendly direction is capital intensive, which affects short-term competitiveness. Some 44 per cent of domestic enterprises and 38 per cent of foreign-invested enterprises admitted that they have not fully complied with environmental regulations.

In addition, investment in innovation and green production practices are generally at an early stage. According to a report from the United Nations Development Program (UNDP), only about 50 per cent of enterprises in the fields of industrial production, transportation, and construction have applied solutions to save energy and resources.

Minister of Planning and Investment Nguyễn Chí Dũng said that green and sustainable growth is currently a top priority and a goal that all countries are aiming for. For Việt Nam, green growth is an opportunity to become a pioneer in the region, catching up with global trends.

He said Việt Nam believes that green growth is based on science, and innovation, taking advantage of new technologies, protecting the environment, and effectively responding to climate change.

The country should create an appropriate mechanism to mobilise and optimise resources, encourage the private sector to participate in green economic development, use various types of renewable energy such as wind power, and solar power to reduce emissions, and strengthen international cooperation. It should also focus on green growth and sustainable development, the minister added.

Recognising the importance of green growth, the Prime Minister issued the National Green Growth Strategy for the period of 2021-30, with a vision to 2050, along with a national action plan on green growth for the period 2021-30 and a circular economy development scheme, which all share the same goal to develop science and technology, innovate, and transform the economic model towards a green, digital, and circular economy in order to participate more deeply in the global supply chain.

According to the Ministry of Planning and Investment, the State can only meet 30 per cent of resources for green growth. Therefore, mechanisms are needed to incentivise domestic and foreign financial institutions as well as the private sector to participate in realising green growth goals.

In order to diversify resources, a US business delegation, consisting of 50 big names in the technology industry with green production principles, has just finished a trip to explore manufacturing opportunities in Việt Nam. The businesses include Boeing, Meta, and CitiBank which are dubbed as the "eagles" in the fields of telecommunications, aviation, semiconductor, and finance.

If new projects from these groups are implemented, it will be a testament to the new success in attracting resources as well as marking a new stage in realising Việt Nam's green growth ambitions.