UK and EU welcome Vietnam's energy transition progress

The JETP is a cooperation initiative and related Political Declaration agreed in December 2022 between Vietnam and the International Partners Group (IPG), now comprised of the EU, the UK, Canada, Denmark, France, Germany, Italy, Japan, Denmark and Norway, and co-led by the EU and the UK. The overarching goal is to support the country’s energy transition trajectory towards its 2050 net-zero emissions commitment.

According to a joint statement released on May 29, the EU and the UK warmly welcomed French President Emmanuel Macron’s visit to Vietnam, reaffirming support for Vietnam’s goal to deliver a clean energy transition that is inclusive and rooted in sustainable growth on the pathway to net-zero emissions by 2050.

On May 26, President Macron and President Luong Cuong announced progress on two important JETP-supported projects. A credit financing agreement between Vietnam Electricity's National Power Transmission Corporation (EVN NPT) and Agence Française de Développement (AFD) of €67 million ($75 million) will be used to build a 500 kV transmission line and substations across Binh Duong and Dong Nai provinces. This project will increase the national transmission network’s capacity to integrate renewable energy and deliver reliable electricity in key economic regions in southern Vietnam.

In addition, an MoU between EVN and AFD was signed to provide up to €490 million ($552 million) in long-term financing to support the construction of the first 1,200 MW pumped storage hydropower project in Vietnam located in Ninh Thuan province. This large-scale energy storage project will improve grid resilience and enable further integration of variable renewable energy sources into Vietnam’s energy mix. This pilot project also contributes to the development of regulatory, financial, and investment approaches, paving the way for related future partnerships.

France’s and IPG’s €547 million ($616 million) financial contribution to these two flagship energy transition projects marks an important step towards delivering the public finance commitments under the JETP.

The EU and UK remain fully committed to the JETP as co-leads, working with Vietnam as it continues to raise ambitions for tackling emissions, limiting coal, and increasing the share of renewables as set out in the recently revised National Power Development Plan (PDP8).

In addition to mobilising project-specific finance, the IPG will continue to engage closely with the Vietnamese government, the Glasgow Financial Alliance for Net Zero, and wider JETP partners to promote a strong enabling policy environment for developers and investors that drives Vietnam’s future green growth ambitions.

Nguyen Xuan Thang, general director of GreenYellow Vietnam GreenYellow warmly welcomes the joint statement on elevating Vietnam-France relations to a Comprehensive Strategic Partnership. Of particular significance is the shared commitment to the outcomes of the first Global Stocktake (GST) at COP28 – especially the ambition to transition away from fossil fuels. This marks a strong signal of deepened cooperation in climate action and the global energy transition. As a French multinational and a key player in renewable energy, GreenYellow is proud to contribute to Vietnam’s journey towards net-zero emissions by 2050. We provide comprehensive decarbonisation solutions, from rooftop solar via power purchase agreements to battery energy storage systems and energy efficiency enhancements, with no upfront investment required from our commercial and industrial partners. These solutions help businesses lower both energy costs and carbon footprints. With the aligned vision of both governments, GreenYellow is committed to expanding our investment in Vietnam. We aim to accelerate the transition through renewable energy deployment, energy efficiency advocacy, and partnerships that encourage sustainable and efficient energy use.

Vietnam launches Resource Mobilisation Plan for Just Energy Transition Partnership During the World Leaders Summit at COP28 on December 1, Vietnamese Prime Minister Pham Minh Chinh launched the Resource Mobilisation Plan (RMP), which marks a key milestone towards the implementation of the Just Energy Transition Partnership.

JETP a crucial step for Vietnam’s climate ambitions Almost one year ago, the Vietnamese government agreed on a Just Energy Transition Partnership (JETP) to facilitate the transition away from fossil fuels towards cleaner forms of energy. In the months since, there has been a flurry of activity to support the operationalisation of that initial agreement.

Vietnam and EIB strengthen financial cooperation Efforts are underway to deepen financial ties between Vietnam and the European Investment Bank.