On October 4th, Deputy Minister Vo Thanh Hung held a working session with the European Union (EU) Champion and the UK Special Envoy on the Just Energy Transition Partnership (JETP) at the Ministry of Finance headquarters. Other attendees included representatives from various positions within the Ministry of Finance, the Embassy of the United Kingdom, the EU Ambassador to Vietnam, and experts who are implementing the JETP program of the UK and EU.
Deputy Minister Vo Thanh Hung delivered a speech during the working session.
During the meeting, both sides discussed the mutual concerns related to implementing the partnership mechanism for equitable energy transition in Vietnam, as well as deploying the development of a Resource Mobilization Plan and selecting JETP pilot projects.
Deputy Minister Vo Thanh Hung acknowledged and appreciated the development partner groups' initial commitment to implementing JETP's goals in Vietnam. As per the Deputy Minister, the estimated need for the goal of implementing energy conversion under JETP is around 134 billion USD, and the amount of 15.5 billion USD that the JETP program is expected to mobilize is still quite modest. Therefore, the Vietnamese Government will implement its commitment to energy transition under JETP, and mobilizing financial resources to achieve this commitment is inevitable. The financial resources of partner groups through the JETP program will contribute to promoting the process of implementing this commitment faster and more conveniently.
The Deputy Minister requested donors and development partner groups to clarify the source of support capital that JETP commits to Vietnam, in addition to the loan conditions and preferential nature of the loan. Apart from financial support, the Deputy Minister wants partner groups to prioritize technical support and technology transfer to realize the contents that Vietnam has committed to achieving the common goals of the proposed JETP Program.
Overview of the meeting
During the meeting, the EU's JETP Special Envoy and the UK's JETP Special Envoy expressed their appreciation for Vietnam's efforts in gradually fulfilling its JETP commitments. It was emphasized that JETP's loans are not intended for profit purposes. The lending conditions and incentives will vary depending on each project and sponsor.
Once Vietnam provides a project list and clear implementation steps, it will facilitate the implementation process for both parties. The JETP Special Envoys expressed their willingness to continue participating and providing specific support to Vietnam in implementing its commitments to increase program effectiveness. To ensure the program's smooth implementation, Vietnam was advised to provide a specific roadmap with a timeline for the next implementation steps. It was also suggested to identify and balance resources for program implementation. JETP's resources act as a catalyst and seed capital in the initial phase of the implementation program.
Mr. Chris Taylor, JETP Special Envoy representing the United Kingdom
During the meeting, both sides had specific discussions regarding legal mechanisms related to the management and use of ODA capital and preferential loans. The aim of the meeting was to create opportunities for businesses to implement energy projects and to increase their access to ODA capital and preferential loans. The Government's foreign loan re-lending mechanism and the 500 million EUR loan, mentioned by the European Bank within the framework of JETP implementation, were also discussed.
Vietnam's Fair Energy Transition Partnership (JETP) Declaration is a political statement that shows Vietnam's cooperation with G7 countries and development partners in achieving the goal of net zero emissions by 2050. The declaration aims to convert energy from coal to clean energy, and the Politburo has approved Vietnam's participation in COP26 in 2021 to implement it. To support the Declaration, the Prime Minister has approved the establishment of the JETP Secretariat and working groups, with leaders of the Ministry of Finance assigned to lead the Finance group.
The JETP program aims to mobilize at least 15.5 billion USD from public and private financial sources over the next three to five years to support Vietnam's green transition process. This will contribute to Vietnam's goal of achieving net zero emissions by 2050.