COP28 Vietnam Business Forum discusses green transition

Held alongside the 2023 United Nations Framework Convention on Climate Change (COP28), the high-level forum was co-chaired by Prime Minister Pham Minh Chinh, and Ben Backwell, CEO of GWEC – an organisation that represents renewable energy developers responsible for 70 per cent of global wind power capacity.

The business forum convened ministerial leaders, local authorities, international organisations, and experts in the offshore wind supply chain. Major wind power developers, potential renewable energy buyers, and top financial institutions also participated.

Renewable energy is key in facilitating the green transition. Energy sourced from renewables is expected to increase from 28 per cent in 2021 to 69 per cent in 2030, accounting for 11,000GW. Among the renewable energy sources, offshore wind stands out as a provider of sustainable economic growth and jobs over the long term.

Vietnam currently boasts a significant potential wind power capacity of 600GW. The country has an opportunity to unlock the economic prospects of renewable energy and fulfill its net-zero commitments through wind power development.

The business forum facilitated discussions between domestic and international delegations to develop the financial and policy frameworks needed to accelerate Vietnam’s green transition, especially in offshore wind development. The policies aim to unleash the country’s wind energy potential, positioning the country as a top renewable energy supply chain hub and attracting significant private sector investments.

Ben Backwell, CEO of GWEC said, “Offshore wind is a cost-effective and price-predictable renewable energy solution for countries planning their energy transition. GWEC recognises wind power’s pivotal role in tackling climate change and energy security, and we applaud Vietnam’s commitments to prioritise wind energy for sustainable economic growth and large-scale renewable energy generation.”

PM Chinh, currently leading a senior Vietnam’s government delegation in Dubai, communicated the Vietnam’s progress towards the net-zero target at COP28. Vietnam is participating in a political declaration on establishing the Just Energy Transition Partnership, and Power Development Plan VIII aims for 150GW and 573GW of energy capacity from all sources, requiring investments of $120 billion and $511 billion for power sources alone by 2030 and 2050, respectively.

Collaboration between the Vietnamese government, developed countries, international organisations, and the global business community is essential to meet the country’s renewable energy investment needs.

GWEC is working closely with government ministries in Vietnam to push for the transition to wind energy. The organisation is also collaborating with the Vietnam Energy Partnership Group, the World Bank, and various other multilateral organisations and stakeholders.

There were several recommendations proposed at the forum to encourage investment in Vietnam’s green transition, including urging the government to prioritise the establishment of a clear framework for offshore wind.

The need to establish an inter-ministerial committee dedicated to streamlining procedures for offshore wind projects was also suggested. This committee would facilitate collaboration within the government and play a crucial role in allocating sites for pilot projects in the offshore wind sector.

Jim Andrew, executive vice president and chief sustainability officer of PepsiCo, said, “Allowing direct power purchase agreements would accelerate our transition to 100 per cent renewable electricity across our significant operation in Vietnam. We look forward to collaborating with the government and others to make this a reality.”