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State Policies Supporting Net Zero Vietnam Aims for Net Zero by 2050

At the COP26 Climate Summit held in Glasgow, Scotland, Vietnam, along with many countries worldwide, committed to achieving net-zero emissions by 2050. To realize this commitment towards Net Zero by 2050, the Vietnamese government has implemented various policies and measures to support this goal. Below is an overview of Vietnam’s policies concerning Net Zero and specific actions:

Vietnam, driven by its enthusiasm and commitment to environmental protection, has paid special attention to the Net Zero goal, particularly in reducing greenhouse gas consumption and emissions into the environment. Here is a comprehensive look at Vietnam’s policies related to Net Zero and concrete actions.

Gradual improvement of mechanisms and policies

Dr. Ha Quang Anh, Director of the Low Carbon Development Center, Climate Change Department, Ministry of Natural Resources and Environment, mentioned that over the past year, Vietnam has actively implemented various solutions, focusing on refining mechanisms and policies, which are the first and most crucial steps in realizing the Net Zero commitment.

Vietnam has issued Decree No. 06/2022/ND-CP by the government, which regulates the reduction of greenhouse gas emissions and ozone layer protection. Furthermore, Decision No. 01/2022/QD-TTg was issued to create a list of sectors and facilities emitting greenhouse gases subject to greenhouse gas inventory. Prime Minister’s Decision No. 888/QD-TTg approved the Action Plan for implementing the results of COP26, and there’s also an action plan to reduce methane emissions by 2030.

“In the last five years, the state budget allocation for environmental purposes has reached over 21,000 billion VND per year,” shared Minister of Finance Ho Duc Phoc during the “Net Zero – Green Transition: Opportunity for Leaders” workshop on June 27, 2023, organized by Vietnam Television (VTV).

According to Mr. Ho Duc Phoc, the Minister of Finance, numerous financial policies have been enacted to mobilize and attract investment resources for green growth. Among these policies are tax policies that aim to protect the environment, such as environmental protection taxes, resource taxes, and special consumption taxes on goods that harm the environment. These policies support and encourage environmental protection activities, reducing pollution and climate change impact.

In addition, the Ministry of Natural Resources and Environment has conducted various programs, training, and capacity building for different layers and segments of the population to enhance their understanding of climate change and Vietnam’s commitments at COP26. Many businesses have demonstrated a strong awareness of reducing emissions and carbon neutrality to create clear strategies and directions for their operations.

Mobilizing various resources for the green transition

The green transition and greenhouse gas emissions reduction to achieve the Net Zero commitment represent a long journey with numerous challenges and difficulties. According to the World Bank’s estimate in 2022, Vietnam may need to invest an additional $368 billion until 2040, equivalent to 6.8% of GDP annually when pursuing the roadmap for combined climate adaptation and net-zero emissions.

Hervé Conan, Director of the French Development Agency (AFD) in Vietnam, shared some international experiences in green transition. Achieving Net Zero by 2050 requires a campaign on energy and public engagement. It also involves a strategy for transitioning to alternative energy sources.

Vietnam needs to plan its national grid until 2030 and the roadmap to 2050, giving priority to public investments and strengthening the power grid, implementing alternative energy solutions, and attracting private projects in wind energy, solar energy, and other renewable energy sources. In practice, 60% of emissions in 2020 came from the energy industry, primarily electricity generation.

Therefore, reducing greenhouse gas emissions from power generation is critically important for Vietnam to achieve its Net Zero goal.

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Greenhouse gas inventory: Effort to achieve the net zero goal. (Photo: moitruongvadothi.vn)

Regarding business responsibilities, Dr. Ha Quang Anh emphasized that companies need a strong understanding of climate change and the government’s Net Zero commitment. With a solid understanding, companies can translate awareness into concrete actions. Businesses also need to prepare financial resources and invest in science, technology, and technical resources to gradually transition their production towards low-carbon development, meeting practical requirements in the future.

International experiences and recommendations emphasize that Vietnam should develop circular and low-carbon agriculture, protect and restore natural resources, and establish a National Renewable Energy Center to develop human resources, transfer technology, share experience, and manage national regulations in this field.

Vietnam needs to further advance climate diplomacy, attracting international resources (public and private finance, technology, knowledge, experience, etc.) through exchanges, high-level visits, and collaborative programs between ministries, localities, and foreign partners, as well as Vietnam’s representative agencies abroad.

State policies supporting Net Zero

To achieve the Net Zero goal and reduce the impact of climate change, the Government of Vietnam has introduced several supportive policies and measures. Some of Vietnam’s crucial policies related to the Net Zero goal include:

Clean energy development strategy: Vietnam has set a goal of developing clean and renewable energy sources, with a focus on solar, wind, hydropower, and nuclear energy. This translates into investments in environmentally-friendly projects and technologies.

Development of public and eco-friendly transportation: The Vietnamese government is focused on improving public transportation and promoting the use of eco-friendly modes of transportation, such as electric vehicles and bicycles. This helps reduce greenhouse gas emissions from personal transportation.

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Prime Minister Pham Minh Chinh chairs 4th meeting of the national steering committee for implementing Vietnam’s commitments at the COP26 (Photo: VNA)

Enhancing environmental monitoring and management capacity: Vietnam is creating stricter regulations and standards related to the environment to ensure compliance by companies and organizations. This includes controlling and monitoring greenhouse gas emissions and managing forests to absorb CO2.

Promoting research and development of green technology: The government of Vietnam supports the development and application of new and green technologies to minimize negative environmental impacts. This includes encouraging businesses and organizations to research and develop eco-friendly solutions.

Encouraging energy efficiency and clean energy use: Various policies incentivize more energy-efficient practices and the use of clean energy. This includes promotions and incentives for installing solar panels and wind energy systems.

Waste management and wastewater treatment: Vietnam is concentrating on more efficient waste management and wastewater treatment to reduce environmental impacts.

EMTEK Aims for Sustainable Development – Net Zero

EMTEK is also committed to a sustainable future by promoting Industry 4.0. The company assists businesses in automating production processes, improving efficiency, and reducing environmental impact. By utilizing artificial intelligence and smart technology, EMTEK is helping create smarter, environmentally friendly, and more efficient production processes.

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Circular economy development contributes to promoting green growth.

EMTEK is not only a leading technology provider but also a reliable partner for businesses striving for green development. From supporting renewable energy projects to driving Industry 4.0, EMTEK is committed to contributing to building a sustainable future, aligning with the government’s Net Zero goals.

These policies and measures are all aimed at the Net Zero target by minimizing greenhouse gas emissions and enhancing greenhouse gas absorption from the environment. The Vietnamese government as a whole and EMTEK in particular have pledged to address climate change and contribute to the global Net Zero goal.