Decision 1009/QD-TTg 2023 approve Scheme implementing Political Declaration on Establishing the Just Energy Transition Partnership

DECISION

Approving the Scheme on implementation of the Political Declaration on Establishing the Just Energy Transition Partnership^[1]

THE PRIME MINISTER

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the Political Declaration on Establishing the Just Energy Transition Partnership with Vietnam;

At the proposal of the Minister of Natural Resources and Environment,

DECIDES:

Article 1. To approve the Scheme on implementation of the Political Declaration on Establishing the Just Energy Transition Partnership with Vietnam (the JETP Declaration) with the following major contents:

I. VIEWPOINTS

1. To mobilize to the utmost and effectively use resources to deploy just energy transition in the principle of harmonizing the interests of entities investing in and using energy and meeting development requirements of regions and localities within the national public debt and external debt management frameworks; and promoting the implementation of the orientations set in Vietnam’s National Energy Development Strategy, the National Overall Master Plan on Energy and nationally determined contribution (NDC) of Vietnam.

2. To ensure an open, transparent and just energy transition process with broad consensus among stakeholders, including businesses, workers and population groups affected by the energy transition process; to improve the effect and effectiveness of the just energy transition process.

3. Private investment is critical to the just energy transition process; resources from the State and the International Partners Group (IPG) lead the process of technology transfer, governance capacity improvement, and use of clean alternative energy sources. Resources from the Glasgow Financial Alliance for Net Zero (GFANZ) and other financial institutions shall be invested directly in businesses without requiring government guarantee.

II. OBJECTIVES

1. General objectives

To successfully implement the JETP Declaration in association with promoting the development of renewable energy and energy conservation and efficiency, contributing to achieving the net-zero emissions goal by 2050; to develop the energy industry, ensuring the harmony between sub-sectors with synchronous and smart infrastructure on the basis of ensuring national energy security and development goals and ensuring equity in energy transition. To receive and effectively use the assistance of international partners in technology transfer, governance, human resource training, and financial grants for the implementation of the JETP Declaration, contributing to the implementation of orientations set in Vietnam’s National Energy Development Strategy and the Global Coal to Clean Power Transition Statement.

2. Specific targets

a/ The period from now to 2030

- To formulate and improve the legal framework so as to create favorable conditions to attract investors, businesses and people to participate in the just energy transition process and promote technology transfer.

- To formulate a plan on mobilization of resources to implement the JETP Declaration (the Resource Mobilization Plan) and implement pilot projects on deployment of just energy transition. To implement the Resource Mobilization Plan with financial support and technologies transferred from international partners so as to promote the transition of coal-fired power and fossil energy to clean energy; to develop types of renewable energy and new energy (green hydrogen, green ammonia, etc.).

- To upgrade and build smart, advanced and modern infrastructure facilities for electricity production, transmission, storage, distribution and regulation, capable of integrating renewable energy sources at a large scale; to enhance electrification and human resource development; to gradually master modern technologies, striving to be able to produce equipment to serve the development of the renewable energy sector; to improve governance capacity of the energy industry up to an advanced level.

- To develop the renewable energy industry, especially the industry of manufacturing renewable energy equipment, electric energy storage equipment, and equipment for CO₂ capture, storage and utilization (CCSU); to promote the production of green hydrogen, green ammonia, etc. To strive to form 2 inter-regional renewable energy industry and service centers in areas with great potential such as the Northern, Southern Central, and Southern regions by 2030.

- To determine risk mitigation measures to protect businesses, investors, workers and poor, vulnerable households during the energy transition process; to provide training and capacity building for them to grasp investment and employment opportunities from the renewable energy development ecosystem.

- To create consensus and active participation of people, businesses and communities in energy conservation and efficiency and energy transition, thus striving to reach a renewable energy ratio of 47% and ensure that the power sector’s peak emissions will not exceed 170 million tons of CO₂ equivalent, and the total output of coal-fired power will not exceed 30,127 MW, enabled by complete and substantive international support.

b/ The period after 2030

- To continue to improve the policy system for energy transition and clean energy production and use to become regular and continuous activities of organizations, businesses, communities and all people under the leadership of the State and with international support.

- To continue to develop the renewable energy industry, especially the industry of manufacturing renewable energy equipment, electric power storage equipment, and equipment for CCSU; to boost the production of green hydrogen, green ammonia, etc.

- Not to build new coal-fired power plants and gradually eliminate existing coal-fired power plants, implement crucial measures to reduce greenhouse gas emissions so that by 2050, emissions from energy use will not exceed 101 million tons of CO₂ equivalent and renewable energy will account for 80-85% of total primary energy.

- Vietnam will become a regional renewable energy center, with a contingent of talented experts in just energy transition so as to share Vietnam’s experiences with the international community.

III. KEY TASKS

1. Improving institutions and policies to promote energy transition

- To review relevant legal documents for proposing authorities to amend, supplement or abolish existing documents or promulgate new ones, ensuring compliance with the process of implementing the JETP Declaration and ensuring equity in energy transition, especially in economic sectors and for communities affected by latent negative impacts of the energy transition process.

- To improve the legal framework to create favorable conditions for investment in renewable energy and energy efficiency and strengthen the power grid in Vietnam.

- To formulate a long-term legal framework in conformity with the roadmap to achieve net-zero emissions and meet the requirements of low-emission development and transition from exploitation and utilization of fossil energy to renewable energy or low-emissions energy.

- To develop a mechanism to support domestic businesses in manufacture, production and maintenance of renewable energy equipment.

- To integrate just energy transition issues in formulation and implementation of land-use master plans and plans and socio-economic development mater plans and plans at all levels.

2. Promoting the transition of coal-fired power to clean energy

- To negotiate the halting of investment in coal-fired power plants that are behind schedule or face difficulties in changing shareholders and arranging capital; to negotiate the closure of old and inefficient coal-fired power plants.

- To formulate a roadmap to reduce greenhouse gas emissions from coal-fired power plants in sync with the roadmap to develop a carbon market in Vietnam connected with the world carbon market.

- To strive to halt the operation of coal-fired power plants that do not meet environmental standards; to consider repurposing coal-fired power plants as appropriate, contributing to ensuring national energy security.

- To apply managerial and technical measures to improve the performance of traditional power plants and raise energy use efficiency in electricity production, transmission and distribution; to promote the transition of fossil energy to clean energy.

3. Developing an industrial and service ecosystem for renewable energy

- To develop an industrial and service ecosystem for renewable energy according to the National Electricity Development Plan for the 2021-2030 period, with a vision toward 2050.

- To continue to boost the development of renewable energy sources (hydropower, solar power, onshore and offshore wind power, etc.), new energy (green hydrogen, green ammonia, wave power, geothermal power, etc.) in conformity with the ability to ensure safety for the electricity system at reasonable electricity costs.

- To study the construction of 2 inter-regional renewable energy industry and service centers specialized in electricity production, transmission and consumption; renewable energy equipment manufacturing industry, construction, installation, and related services; to build renewable energy industrial ecosystems in areas with great potential such as the Northern, Southern Central and Southern regions.

- To develop various types of biomass energy and waste-to-energy to make the full use of agricultural, forestry and wood processing by-products and promote afforestation and environmental treatment.

- To formulate and implement regulations on renewable energy ratios applicable to electricity distribution organizations in combination with building a renewable energy credit market. To improve the ability for domestic manufacture, production, repair and maintenance of renewable energy equipment.

- To encourage the use of electricity produced from clean energy sources; to unlimitedly develop self-consumption rooftop solar power systems on office buildings and dwelling houses.

4. Energy conservation and efficiency

- To strengthen the implementation of solutions for energy conservation and efficiency and promote the use of clean energy in the fields of industry, agriculture, transport, services, trade and civil activities.

- To improve existing standards, technical regulations and mandatory regulations and improve existing ones on, along with sanctions for violations of, energy consumption norms of economic sub-sectors.

- To promote the development and application of the energy service company (ESCO) business model.

5. Upgrading the power transmission and distribution system, accelerating the roadmap to build a smart power system and develop an energy storage system

- To continue to accelerate the roadmap for developing a smart power system so as to increase the ability to integrate renewable energy sources into the power system and reduce power loss on the power grid.

- To promote cooperation in power grid connection with countries in the region to enhance system connectivity, exchange electric energy, and take advantage of resource strengths of these countries.

- To develop pumped hydropower storage plants for the purposes of load regulation, capacity reserve and integration of large-scale renewable energy sources.

- To support investment in, and apply battery energy storage technologies in combination with solar power and other types in energy storage or in areas near load centers.

- To develop a mechanism to encourage electricity users to reduce load during peak hours of the power system or change management methods to operate during hours of low electricity prices.

6. Deploying transition to green energy and reducing greenhouse gas emissions in the transport sector

- To implement the transport sector’s Action Program on transition to green energy and reduction of carbon and methane emissions.

- To improve energy use efficiency and deploy transition of vehicles, equipment and infrastructure facilities of the transport sector to electric and green energy-operated vehicles and equipment and green infrastructure facilities.

- To develop infrastructure of electric vehicle charging networks to ensure availability of charging stations usable by multiple types of vehicles at places where there is demand therefor; to promote the transition of road vehicles to electric vehicles.

7. Innovation, technology development and transfer

- To establish an international center for renewable energy in Vietnam to share expertise, support the development of skills and technological knowledge and at the same time facilitate cooperation with the private sector on technology transfer in order to accelerate the deployment of renewable energy and management of clean power systems.

- To apply new, modern technologies in the direction of transiting to a low-carbon economy, reducing energy consumption and emissions, aiming to meet requirements on carbon emissions per product unit of exported goods and the carbon market.

- To formulate and promulgate criteria, standards and national technical regulations on identifying clean technologies and green transition projects; to supplement national standards and technical regulations in the field of recycling and use of waste from energy production.

- To research, develop and apply new energy sources (green hydrogen, green ammonia); to study the pilot deployment of CCUS technologies, ammonia co-firing (coal-fired power), capture of methane in coal and petroleum exploitation, and storage, processing and transportation of coal, petroleum and fuel products.

- To accelerate research and application of scientific and technological advances and digital transformation in management, exploitation, production, distribution and energy conservation and efficiency; to master the technologies of manufacturing clean energy equipment, renewable energy equipment, and advanced and eco-friendly energy storage equipment suitable to Vietnam’s conditions.

- To carry out research, testing, improvement and innovation of clean technologies at universities, research institutes and large private enterprises to gradually master and transform technologies.

8. Ensuring equity in energy transition

a/ To ensure equity in accessing resources and discharging responsibility in energy transition

- To evaluate economic, social and environmental impacts on stakeholders in the just energy transition process.

- To ensure that businesses implementing energy transition projects will have direct access to financial resources from the IPG, GFANZ and financial institutions without requiring government guarantee.

- To ensure that businesses shall deploy greenhouse gas emissions reduction in conformity with the roadmap to achieve net-zero emissions by 2050 and implement NDC.

- To use land for multiple purposes for renewable energy production in combination with agricultural development and aquaculture to increase accessibility to energy, create investment opportunities, create jobs and increase the proactiveness of businesses in the process of repurposing agricultural land use for renewable energy development.

b/ To support groups of vulnerable workers and households affected by energy transition

- To expand electricity transmission and distribution infrastructure facilities, ensuring opportunities to access electricity at reasonable prices for residential and specific electricity uses; to strive for the target that by 2025, 100% of rural households will have access to electricity through the implementation of the “Small-Scale Power Grid Development Fund” mechanism to ensure access to electricity from renewable energy at grid system-inaccessible places.

- To design support mechanisms to ensure affordable electricity prices for affected, vulnerable and low-income groups, including implementation of electricity price subsidy through many forms of retailing electricity for residential use at a threshold price suitable to affordability of low-income households.

- To promote green and sustainable job creation in a low-carbon economy; to establish and implement programs to support job creation, vocational training, and personnel retraining for workers affected by the energy transition process, especially groups of vulnerable workers such as women and informal workers, to be provided with green job information, have access to vocational training opportunities, be supported in career change, and maintenance and creation of new livelihoods suitable to actual conditions.

- To implement social security support mechanisms, including severance pay, early retirement, unemployment benefits and social benefits, for informal workers, and other forms of social protection suitable for each group of workers and households whose employment and income are affected, with the goal of ensuring household living standards after the energy transition process.

c/ To provide training and retraining to affected workers

- To build the capacity of cadres, civil servants, public employees and workers in specialized management agencies from the central to local level in the fields of renewable energy and new energy and related topics.

- To review and make statistics of workers who lose their jobs due to energy transition and formulate appropriate training and retraining plans and programs so that these workers can soon re-enter the labor market.

- To promote the development of a national skills framework and national occupational skills standards, creating scientific and practical grounds for formulation of plans and strategies for vocational training related to renewable energy
and new energy.

- To update programs and materials on knowledge, capacity and skills training and further training in conformity with requirements of green jobs and new occupations in the energy transition process; to diversify types of vocational training cooperation with the proactive participation of businesses and other socio-economic sectors.

- To restructure, and improve the quality and efficiency of, the labor market; to integrate the content of just energy transition in the implementation of the Program on provision of support for development of the labor market up to 2030 and implement the Vocational Education Development Strategy for the 2021-2030 period.

- To integrate the content on just energy transition and renewable energy and new energy development in teaching contents of the general education system.

9. Communication and awareness improvement

- To carry out public communication and advocacy to raise awareness about deployment of fair energy transition.

- To integrate communication activities in the process of formulating and implementing just energy transition programs and projects.

10. Promoting cooperation and mobilizing resources for just energy transition

- To actively mobilize and attract international resources through high-level external activities, and working programs of ministries, sectors and localities with foreign partners and overseas Vietnamese representative missions.

- To learn, absorb and share experiences and models for deploying just energy transition in other countries, initiatives on use of green energy sources, transition from coal to clean energy and renewable energy sources, and decarbonization of the power grid to serve sustainable socio-economic development.

- To proactively participate and actively contribute to bilateral and multilateral cooperation frameworks in order to integrate the content on just energy transition in the process of bilateral and multilateral cooperation and negotiation; to actively mobilize the IPG to provide financial and technical assistance for Vietnam according to commitments and provide additional support for just energy transition in the period after 2025.

IV. RESOURCES FOR IMPLEMENTATION

Funds for implementation of the Scheme on implementation of the JETP Declaration shall be allocated from the state budget and mobilized to the utmost from donors and aid providers, and other lawful financial sources in accordance with law.

To mobilize resources from the IPG, the GFANZ and other financial organizations and institutions; to promote private investment, promote the development of the domestic carbon market and connect with the world carbon market with a view to increasing resources for low-carbon economic development.

V. ORGANIZATION OF IMPLEMENTATION

1. The Secretariat for the Implementation of the JETP Declaration shall be tasked to advise the Prime Minister in directing, administering and resolving jobs during the implementation of the JETP Declaration and, at the same time, coordinate with the IPG in implementing the JETP Declaration. To assign ministers of related ministries to establish Working Groups to implement the JETP Declaration:

a/ The General Affairs Group shall be established by the Minister of Natural Resources and Environment with a Deputy Minister of Natural Resources and Environment acting as the its head and tasked to synthesize and report on operation results of Working Groups; assume the prime responsibility for formulating biennial evaluation reports on the implementation of the goals stated in the JETP Declaration for reporting to the National Steering Committee for Implementation of Vietnam’s Commitments at COP26 and the IPG; and assume the prime responsibility for organizing forums for exchange and discussion between ministries and sectors with the IPG, the GFANZ and related parties.

b/ The Institution, Policy and Investment Group shall be established by the Minister of Planning and Investment with a Deputy Minister of Planning and Investment acting as its head and tasked to improve institutions and solve problems and difficulties, and reform administrative procedures to create conditions for foreign investors and businesses to participate in deployment of just energy transition; integrate the content on just energy transition into the country’s long-term and medium-term programs, strategies, master plans and plans; and mobilize and effectively use funds from partners for Vietnam’s just energy transition.

c/ The Technology and Energy Group shall be established by the Minister of Industry and Trade with a Deputy Minister of Industry and Trade acting as its head and tasked to review and propose the improvement of policies and regulations to promote the deployment of just energy transition; identify needs, and promote and coordinate technical activities and technology transfer in implementing the JETP Declaration according to the guidance of Vietnam and the IPGs so as to deploy just energy transition.

d/ The Finance Group shall be established by the Minister of Finance with a Deputy Minister of Finance acting as its head and tasked to organize negotiations on mobilization of financial assistance from the IPG, the GFANZ and related parties, including bilateral and multilateral financial institutions, the private sector and other parties in implementing the JETP Declaration.

2. Assignment of responsibilities to related ministries and agencies

a/ The Ministry of Natural Resources and Environment

- To establish the General Affairs Group with a Deputy Minister of Natural Resources and Environment acting as its head.

- To assume the prime responsibility for, and coordinate with ministries, sectors and the IPG in, formulating a Resource Mobilization Plan, and submit it to a competent authority for approval; to organize monitoring, inspection, evaluation of, and synthesize information, on the implementation of the Scheme and Resource Mobilization Plan and realization of the goals stated in the JETP Declaration; to regularly and irregularly report on the implementation of the JETP Declaration to the Prime Minister and the National Steering Committee for Implementation of Vietnam’s Commitments at COP26.

- To assume the prime responsibility for, and coordinate with related ministries, sectors and agencies in, formulating mechanisms and policies on carbon credit exchange and offset and greenhouse gas emissions reduction/absorption results with a view to attracting foreign investment in conformity with the goal of reducing greenhouse gas emissions according to NDC.

- To assume the prime responsibility for, and coordinate with ministries, sectors and localities in, synthesizing land-use norms for development of electricity works and for environmental protection, climate change response and conservation of the ecology and landscape and submit them to authorities for appraisal and approval according to regulations.

- To assume the prime responsibility for, and coordinate with ministries, sectors and localities in, building databases and building climate service capacity to serve the development and optimal operation of renewable energy systems and farms.

- To complete the National Master Plan on Marine Space and the Overall Master Plan on sustainable exploitation and use of coastal resources to develop wind energy, solar energy and other energy sources from the sea; the Master Plan on water resources for development of hydropower and use of water surface to develop solar energy; and Master Plans on use of land and marine areas to meet multi-purpose requirements for renewable energy production, agriculture and aquaculture.

b/ The Ministry of Planning and Investment

- To establish the Institution, Policy and Investment Group with a Deputy Minister of Planning and Investment acting as its head.

- To assume the prime responsibility for, and coordinate with the Ministry of Finance and related ministries in, identifying the needs for aid and private investment for just energy transition; to mobilize and allocate domestic investment capital, official development assistance (ODA), concessional loans and non-refundable aid other than ODA for the implementation of the Scheme according to regulations on assurance of national public debt and external debt safety; to coordinate with the Ministry of Natural Resources and Environment in formulating and implementing the Resource Mobilization Plan.

c/ The Ministry of Industry and Trade

 - To establish the Technology and Energy Group with a Deputy Minister of Industry and Trade acting as its head.

- To assume the prime responsibility for proposing mechanisms, policies and regulations on deployment of energy transition for inclusion in the draft revised Law on Electricity, Law on Renewable Energy and relevant legal documents; to propose the Government to promulgate policies on direct electricity trading; to propose the development of offshore wind power projects; to coordinate with the Ministry of Natural Resources and Environment in formulating and implementing the Resource Mobilization Plan.

- To assume the prime responsibility for proposing priority projects on deployment of just energy transition to mobilize support from the IPG, the GFANZ and other financial institutions in conformity with the goals of the JETP Declaration and the national energy development roadmap.

- To assume the prime responsibility for coordinating activities and initiatives on energy transition, ensuring unity and mobilizing integrated support for deployment of just energy transition in Vietnam.

- To coordinate with the IPG and related ministries and sectors in proposing the establishment of an international center for renewable energy in Vietnam.

d/ The Ministry of Finance

- To establish a Finance Group with a Deputy Minister of Finance acting as its head.

- To assume the prime responsibility for, and coordinate with related agencies in, negotiating and receiving ODA loans, concessional loans and non-refundable ODA to meet the needs for energy transition according to specialized regulations on management and use of ODA and concessional loans from the IPG and foreign donors; to coordinate with the Ministry of Natural Resources and Environment in formulating and implementing the Resource Mobilization Plan.

- To assume the prime responsibility for, and coordinate with related ministries, sectors and agencies in, formulating financial mechanisms and policies to encourage the private sector to proactively participate in the energy transition process.

d/ The Ministry of Labor, Invalids and Social Affairs

- To assume the prime responsibility for, and coordinate with related ministries, sectors and agencies in, formulating mechanisms, policies and solutions to promote just transition for disadvantaged and vulnerable groups, climate change adaptation and just energy transition; to provide support for vocational training, retraining and job creation and other forms of support for workers affected by the energy transition process; to coordinate with the Ministry of Natural Resources and Environment in formulating and implementing the Resource Mobilization Plan.

- To participate in Working Groups, ensuring a just transition process in conformity with the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work so as to ensure that the whole society can benefit from the green transition process, thus enhancing access to affordable energy and attracting the participation of organizations and related parties to meet the needs of those most affected by the transition process.

e/ The Ministry of Science and Technology

- To assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, researching, developing and applying new energy sources (green hydrogen, green ammonia); to study the pilot deployment of CCUS.

- To assume the prime responsibility for, and coordinate with related ministries and sectors in, researching, testing, renovating and renewing clean technology at universities, research institutes and large private enterprises to gradually master and convert technology; to research and develop new, modern technologies in the direction of transiting to a low-carbon economy, and reducing energy consumption and greenhouse gas emissions.

g/ The Ministry of Transport

- To assume the prime responsibility for, and coordinate with related ministries, sectors and agencies in, formulating and improving institutions and policies to improve energy use efficiency and convert vehicles, equipment and infrastructure in the transport sector into electric and green energy-operated ones; to formulate standards and technical regulations on shared charging stations;  to coordinate with the Ministry of Natural Resources and Environment in formulating and implementing the Resource Mobilization Plan.

h/ The Ministry of Construction

To assume the prime responsibility for, and coordinate with related ministries, sectors and agencies in, formulating and improving institutions, policies and master plans on development of green urban centers and construction works, public infrastructure facilities serving electric vehicles and other eco-friendly means of transport; production and use of low-carbon construction materials; use of new and clean energy sources in order to reduce energy consumption in the construction industry; gradual reduction and replacement of coal in the production of construction materials; and planning, design and management of the development of carbon-neutral urban centers.

i/ The Ministry of Agriculture and Rural Development

- To assume the prime responsibility for, and coordinate with related ministries and sectors in, directing and guiding localities to use agricultural land and aquaculture production land for multi-purpose development in combination with renewable energy production, improving energy access and creating jobs for rural workers.

- To coordinate with the Ministry of Natural Resources and Environment in formulating and implementing the Resource Mobilization Plan; to coordinate with the Ministry of Industry and Trade in developing offshore wind power projects combined with marine aquaculture and fisheries logistics.

k/ The State Bank of Vietnam

To assume the prime responsibility for, and coordinate with related agencies in, concluding and receiving non-refundable ODA not bound to loans of international financial, monetary and banking institutions to provide support for energy transition according to specialized regulations on management and use of ODA and concessional loans from foreign donors; to coordinate with the Ministry of Natural Resources and Environment in formulating and implementing the Resource Mobilization Plan.

l/ Ministries, ministerial-level agencies and government-attached agencies

To fully implement functions, tasks and powers to deploy on schedule the programs and projects in the Scheme on implementation of the JETP Declaration; to ensure better living conditions for workers in the fields under their management; to coordinate with the Ministry of Natural Resources and Environment in formulating and implementing the Resource Mobilization Plan.

m/ The Commission for Management of State Capital at Enterprises

To direct the Vietnam Electricity, Vietnam Oil and Gas Group, and Vietnam National Coal and Mineral Industries Holding Corporation Limited to coordinate closely with related agencies and the IPG in providing information and formulating energy transition plans and roadmaps of their member businesses.

n/ Provincial-level People’s Committees

- To organize the selection of power project owners, and arrange land areas for developing power works in accordance with law; to assume the prime responsibility for, and closely coordinate with project owners in, carrying out ground clearance, compensation and resettlement for power source and grid development projects according to regulations.

- To coordinate with related ministries and agencies in the process of implementing the JETP Declaration.

Article 2. This Decision takes effect on the date of signing.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decision.-

For the Prime Minister
Deputy Prime Minister
TRAN HONG HA