Through analysis of energy transition trends in the world, experiences of global countries as well as the energy development context in Vietnam, the consulting group has proposed 87 specific policies, 17 main groups. important policies and 3 policy levers, as the foundation to promote Vietnam's sustainable energy transition in the future.
Sharing at the conference "Vietnam's energy transition - opportunities and challenges" organized within the framework of the Project "Some studies on energy restructuring associated with the development of efficient and effective energy infrastructure." sustainable to serve Vietnam's socio-economic development in the period to 2030, with a vision to 2045", Mr. Nguyen Anh Tuan - independent expert presented a presentation on important policy levers for transformation. Energy translation in Vietnam.
According to Mr. Nguyen Anh Tuan, energy transition is often understood as the structural transformation of the energy system from high carbon emission sources, using fossil fuels to a clean energy system, with an increase in renewable energy (RE). The low-carbon development strategy is an international commitment that countries are working towards.
Previous thinking said that emerging economies like Vietnam must pursue a high-carbon development path before transitioning to a low-carbon future. However, Mr. Nguyen Anh Tuan believes that this is incorrect thinking, because today there is evidence showing that a low-carbon development strategy will create a faster, less costly and smarter to promote economic development.
From theoretical and practical foundations, the consulting team has built an orientation and strategy for developing sustainable energy infrastructure for Vietnam, and at the same time provided the basis for making strategic transition decisions. Vietnam's energy in the future.
“Accordingly, through analysis of energy transition trends in the world, experiences of global countries as well as the energy development context in Vietnam, the consulting group has proposed 87 specific policies. , 17 important policy groups and 3 policy levers, as the foundation to promote Vietnam's sustainable energy transition in the future" – Mr. Tuan informed.
Specifically, 3 policy levers for energy transition include: First lever is a plan and strategy to promote clean energy, with 5 main groups such as: Planning and goals for Renewable Energy, policy mechanisms for Renewable Energy, related industry support, improving flexibility for Renewable Energy and strategies for promoting clean energy. Low carbon strategy for transportation (MOTVT).
Accordingly, the consulting team has also proposed a number of important short-term policies for this lever such as, requirements on localized content or incentives on domestic content must be part of the design content. future bidding (e.g., conduct evaluation of bids based on multiple criteria, not evaluation “on price alone”). In addition, continuing to maintain the FIT tariff for medium-sized projects (for example, under 10MW) can create a market segment that encourages domestic units to participate.
In addition, encourage the shift to cleaner modes of transport, including electric vehicles and two-wheeled and three-wheeled electric vehicles. To realize this in the medium term, policies need to be developed now.
In the medium and long term, it is necessary to raise existing renewable energy targets to ensure that the energy transition in Vietnam remains in line with the goals of the Paris Climate Agreement and in line with other countries in the region; Expand energy targets to include transportation and refrigeration sectors. At the same time, issue regulations on localization rates or incentive mechanisms - usually a percentage of the total project cost and gradually increasing over time.
For second lever, is to deeply reduce CO2 emissions, including 7 policy groups such as: Low carbon strategy and plan, efficient and economical use of energy, carbon pricing mechanism, emission standards and reductions. coal power, labor market transformation and decarbonization of transportation.
At this lever, the consulting group has proposed a number of important policies such as, in the short term, it is necessary to increase energy efficiency measures through public investment in energy saving measures in public buildings. add; Stop purchasing vehicles using combustion engines for all public service vehicles for a specific period of time.
In the medium term, it is necessary to introduce a relatively low carbon tax, focusing on the electricity and transport sectors; Set up a roadmap for gradually converting coal power plants at the end of the year so that plant management units have time to adjust their financial situation and build a roadmap to deeply reduce carbon emissions.
In the long term, expanding electricity planning to become an integrated resource planning is widely applied around the world; Identify a clear roadmap to increase the carbon tax over time to align the price with the goals in the Paris agreement.
And third lever is infrastructure, including 5 main groups such as: Policies for distribution grid systems, policies for transmission grid systems, policies for developing smart grids, energy storage and improving flexibility for power systems and conversion capabilities for LNG infrastructure.
For this leverage group, proposed policies in the short term include continuing to standardize the registration process for connection to small-scale solar power systems and electric vehicle charging stations. Develop and complete LNG development planning in accordance with the long-term carbon emission reduction strategy.
In addition, in the medium term, it is necessary to supplement analysis of the risk of asset stranding and propose plans to convert the use of LNG-related infrastructure in long-term plans.
Mr. Nguyen Anh Tuan also noted: A low-carbon development strategy is also necessary to ensure energy security in Vietnam. We are currently a major importer of oil and coal, and will become a major importer of natural gas. These trends continue to erode Vietnam's energy security, leaving the country vulnerable to external factors beyond its control.
“However, in the general trend, Vietnam should gradually reduce investment in carbon-emitting industries and switch to a cleaner energy model” – Mr. Nguyen Anh Tuan made a recommendation.
Mr. Nguyen Anh Tuan said that much evidence clearly shows that the global energy transition will create more jobs and opportunities than the high-carbon emission roadmap, improving human health through reducing toxic environmental pollution and promoting economic growth.
Accordingly, countries pursuing low carbon strategies will have a higher chance of developing a new prosperous economy of the 21st century. If the energy transition is well implemented in Vietnam, it can promote The country achieved its goals on economic development, energy and environment. That is an important part of the long-term and comprehensive vision that Vietnam needs to aim for.
According to Industry and Trade newspaper