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Energy Transition: Trends Shaping the Green Future

Energy Transition: Trends Shaping the Green Future

Environmental protection activities and policies are always a matter of concern for the whole world, especially when pollution is increasing, directly affecting the future of humanity. At that time, energy transition is considered the most optimal solution today. This is also an activity that many individuals, organizations and countries are interested in. So what is energy transition? Let's GREEN IN Find out in the article below!

1. What is energy transition?

The energy transition is the shift from fossil fuels to renewable energy in the electricity sector and from fossil fuels to electricity in other economic sectors.

The energy transition is the process of replacing traditional energy sources such as oil, coal and natural gas with more renewable and environmentally friendly energy sources. This includes the use of energy from solar, wind, hydropower, biomass, geothermal and many other clean energy solutions.

In addition to changing energy sources, activities, policies to improve technology, infrastructure or energy usage habits also fall under the category of energy transition. Sustainable production is becoming an important trend globally, with the goal of developing "green" products that are environmentally friendly, especially in the fields of renewable energy and clean technology. This stems from the climate goals agreed upon at the two COPs (Conference of the Parties) - the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). 

At COP21, countries committed to limiting the global average temperature rise to well below 2°C, with an ideal target of 1,5°C above pre-industrial levels. At COP26, nearly 200 countries adopted the Glasgow Climate Agreement, which emphasizes a sharp and sustained reduction in CO2 emissions, with plans to cut 45% by 2030 compared to 2010 levels and reach net zero by mid-century. 

Energy is currently the largest emitting sector, accounting for more than 73% of total global greenhouse gas emissions. Therefore, reducing emissions from the energy sector, especially electricity and transport, has become a focus of many countries' emission reduction policies.

What is energy transition?

2. 4 core elements of the energy transition

  • Technology: The central factor in the energy transition is technology, whether you are changing from diesel to electric, from horses to cars, from coal to solar power, all processes still require the presence of technology. It can be said that the energy transition will depend on the popularity and availability of technology. 
  • Competitive economy: Energy transitions are difficult to implement without economic competition, especially if they are national or regional in scope. 
  • Open markets: Technology cannot be integrated and developed without open markets. Open markets help ensure that new forms of energy will flourish and become increasingly efficient.
  • Support policies: Without support policies, the energy transition process cannot be promoted. Therefore, the role of the government is very important in promptly issuing support policies to promote investment and development on a large scale.

3. Energy transition - The inevitable path to shaping a green future in Vietnam

At COP26, Vietnam committed to achieving net zero emissions by 0, a decision that was made earlier than many developed countries. To realize this goal, Vietnam has implemented many policies to promote the energy transition. The country focuses on expanding renewable energy sources and researching new technologies. These policies not only contribute to global efforts to combat climate change but also ensure energy security and sustainable development. At the same time, this will help promote economic innovation and create green jobs.

The energy sector is currently the largest source of emissions in Vietnam, accounting for 66,3% of total emissions in 2020, 347,5 million tons of CO2 equivalent. Therefore, the green transition needs to prioritize strong changes in the energy sector. 

Energy transition in Vietnam

The National Green Growth Strategy for 2021-2030, with a vision to 2050, and the National Action Plan have set a clear direction for the energy transition. Measures include improving energy efficiency, reducing consumption in production and transportation activities, ensuring energy security with synchronous development of sources, as well as promoting the exploitation of renewable sources to reduce dependence on fossil fuels. This is a comprehensive orientation to reduce emissions and modernize the energy sector.

In particular, Decision 500/QD-TTg dated May 15, 5 of the Prime Minister approved the Power Plan VIII, aiming to promote equitable energy transition associated with production modernization, building smart grids and advanced management systems, in line with green development trends.

In 2023, Vietnam also announced the National Energy Master Plan, emphasizing the priority of developing renewable energy. According to the plan, the proportion of renewable energy in electricity production will reach from 30,9% to 39,2% by 2030. With international support under the JETP Declaration, this proportion can increase to 47%. By 2050, Vietnam aims to increase this proportion to 67,5% - 71,5%, aiming for a green and sustainable economy.

4. Challenges in the energy transition process in Vietnam

Although Vietnam's energy sector has had remarkable achievements in recent years; however, Resolution No. 55-NQ/TW also frankly assessed that Vietnam's energy sector still has many limitations and weaknesses. Through research, it can be seen that the development of Vietnam's energy sector faces a number of major challenges, namely: 

  • Power supply security: Lack of domestic supply; some large-scale power plants are behind schedule, making it difficult for the national power system to meet increasing electricity demand; increasing dependence on imported energy sources in the future, especially coal and liquefied natural gas (LNG).
  • Price rationality and competitiveness: The competitive energy market has not developed synchronously, energy price policies are still inadequate and not fully consistent with market mechanisms.
  • Environmental challenges: Environmental degradation affects living conditions, primarily air pollution in major cities in Vietnam. In general, environmental issues have not received due attention; rapid economic development is prioritized over sustainable development.
  • Sustainability: Economic development in Vietnam is still energy intensive and Vietnam's energy efficiency is low and has not improved significantly. Technology level in some areas of the energy sector is slow to improve, localization and market support for projects in the energy sector are limited. The quality of human resources and labor productivity in some areas are still low.

solar battery

 

5. Conclusion

The above article has helped you learn about the issue of energy transition. Hopefully our information will be of some help to you. Don't forget to follow the next articles at GREEN IN for more updated information!

Reference source: Vietnam's Energy Transition - Opportunities and Challenges (Hanoi National University Publishing House)
 

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