In a significant stride towards a more sustainable future, Vietnam has unveiled its comprehensive National Energy Master Plan, charting a course from 2021 through 2050. Deputy Prime Minister Tran Hong Ha recently signed Decision No. 893/QD-TTG (dated 26 July 2023), giving the green light to this pivotal roadmap that addresses the nation’s energy needs while prioritizing environmental protection and socio-economic growth.
1. Aiming for a Net-Zero Emissions Future
At the heart of the National Energy Master Plan is the aspiration to achieve “ZERO” net emissions by 2050. This ambitious goal underscores Vietnam’s commitment to combatting climate change and safeguarding the environment. The plan envisions a holistic approach to energy, fostering balanced growth across various sub-sectors and embracing cutting-edge infrastructure in line with global scientific and technological advancements.
2. A Self-Reliant Energy Industry
One of the plan’s cornerstones is establishing an autonomous energy industry. This entails developing a robust energy ecosystem centered on renewable and new energy sources. The ultimate vision is for Vietnam to emerge as a regional hub for clean energy, relying on its well-developed sector expertise and exporting renewable energy to neighboring nations.
3. Quantifiable Objectives
The National Energy Master Plan outlines specific targets to steer Vietnam’s energy landscape towards sustainability and resilience. By 2030, the plan aims to ensure the nation’s energy security, with a focus on enabling socio-economic development and industrialization. The goal is to achieve an average annual GDP growth rate of 7% from 2021 to 2030.
To meet increasing energy demands, the plan sets its sights on a total primary energy supply of 155 million tons of oil equivalent by 2030 and an even more substantial supply of 294-311 million tons by 2050. In line with this, steps will be taken to enhance oil and petroleum product reserves, targeting 75-80 days of net imports by 2030, with a gradual increase to 90 days of net imports after that.
4. A Green Transformation
Renewable energy takes center stage in Vietnam’s transition towards sustainability. The plan envisions renewable energy sources contributing 15-20% of the total primary energy by 2030 and an impressive 80-85% by 2050. This transition is not only environmentally conscious but also economically sound, driving energy savings of around 8-10% by 2030 and an even more substantial savings of 15-20% by 2050.
5. Greenhouse Gas Emissions Reduction
Reducing greenhouse gas emissions is one of Vietnam’s substantial commitments under the JETP. While the projected emissions are expected to be approximately 399-449 million tons by 2030, it is set to decrease by 17-26% by that year. Looking ahead to 2050, the nation aims for a remarkable 90% reduction in emissions compared to the baseline development scenario, contributing considerably to global emission reduction efforts.
6. Efficiently Harnessing Domestic Energy Resources
The National Energy Master Plan places a premium on efficiently exploiting and utilizing domestic energy resources. The plan outlines targeted production figures for crude oil, natural gas, and commercial coal for the 2021-2030 period, ensuring a reliable domestic energy supply.
7. Charting a Clean Energy Future
Vietnam plans to establish several clean energy centers across different regions by 2030 as part of its vision. These centers will play a crucial role in producing and utilising new energy sources, including green hydrogen, which is expected to reach a capacity of 100,000 – 200,000 tons per year by 2030 and an impressive 10-20 million tons annually by 2050.
8. A Comprehensive Strategy for Success
To realize these ambitious goals, the National Energy Master Plan outlines six strategic solutions:
- Capital mobilization and allocation, notably increasing the capital sourced from energy enterprises;
- Formulation of effective mechanisms and policies;
- Leveraging environmental considerations, science and technology;
- Nurturing human resource development;
- Fostering international cooperation across various relevant sectors and fields; and
- Diligently implementing and supervising the plan’s execution.
Vietnam’s National Energy Master Plan stands as a testament to the nation’s commitment to sustainable development, environmental stewardship, and technological advancement. With its multifaceted approach and quantifiable targets, the plan sets Vietnam on a transformative path towards a cleaner, greener, and more resilient energy future.
The information provided is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.