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Vietnam’s clean energy transition is failing, pressure group says

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Vietnam’s clean energy transition is failing, pressure group says
August 22, 2024
Article Body Text An internationally backed plan to help Vietnam cut its reliance on fossil fuels and transition to clean energy is failing, partly due to Hanoi’s repression of environmental groups and campaigners, according to an international pressure group. The Just Energy Transition Partnership, or JETP, agreed between Vietnam and an International Partnership Group on Dec. 14, 2022, has not delivered on its promise of helping Vietnam achieve net zero emissions by 2050 and transitioning from fossil fuels to clean energy, said Project88 – which advocates for human rights in Vietnam said in a <a href="https://the88project.org/wp-content/uploads/2024/08/Apocalypse-soon-Project88-FINAL.pdf">report</a>. Under the agreement, nine wealthy countries pledged to mobilize US$15.5 billion for Vietnam to implement clean energy projects. In return, Vietnam promised to phase out coal and consult with NGOs and the media to ensure the transition was carried out in an equitable manner. To date, all parties had failed to live up to their commitments, Project88 concluded in its 56-page report titled “Apocalypse Soon?” published on Aug. 15. <h4>Sponsors don’t keep commitments</h4> Under the agreement, the JETP partners would mobilize an initial amount of at least US$15.5 billion for Vietnam over the following 3-5 years. Of this, half would come from the International Partnership Group, which included the United States, E.U. Germany, U.K., France, Norway and Denmark. The group was supposed to provide more attractive borrowing conditions than current market rates. The other half of the money would come from the Glasgow Financial Alliance for Net Zero sourced privately. However, Project88 said the group only provided 2% of the promised amount in non-refundable grants, the rest was offered as loans at market interest rates, which Vietnam didn’t want to accept because the rates were too high. The pressure group added that a similar situation had happened with Indonesia and South Africa, which also reached deals under the JETP. “Vietnam’s JETP reveals serious problems with the model that rich countries are promoting as the solution to climate change in the developing world,” said Project88’s co-director Ben Swanton. Hanoi-based current affairs watcher Nguyen Pham Muoi agreed. “It is good that countries offer to lend to Vietnam to transition to clean energy but in recent years, due to the strong appreciation of the U.S. dollar and high U.S. interest rates, Vietnam would be very concerned about borrowing from foreign countries. “When electricity production is also expensive, the economy cannot afford the high price of green electricity. This is a practical difficulty, making it virtually impossible to consider borrowing to switch energy sources profitably.” Project88 said rich countries that promise to finance Vietnam's green energy projects should provide non-refundable grants and not make Vietnam their debtor. <h4>Vietnam increases coal power</h4> The JETP was intended to help Vietnam reach the peak of greenhouse emissions five years earlier than forecast, in 2030, cut the power sector's annual carbon dioxide emissions by up to 30% from 240 million tons to 170 million tons, and limit its coal power capacity to 30.2 gigawatts from the planned level of 37 GW. The JETP also aimed to help Vietnam accelerate deployment of renewable energy to account for at least 47% of total electricity production by 2030, up from the current planned 36%. If the target is met, Vietnam would reduce CO2 emissions by about 500 million tons by 2035. However, Project88 said Vietnam had prioritized energy security by continuing to increase coal use rather than converting to clean energy. Since Vietnam generated just 18% of its electricity from coal in 2010, the fossil fuel has become the largest source of electricity, supplying nearly 40% of its needs. While cutting planned capacity for future coal plants, the government has increased actual output from existing plants. And, although construction of new coal power plants has slowed, Vietnam now has 75 plants and plans to build at least eight more. In June 2023, after power shortages as soaring temperatures pushed up demand while water shortages cut electricity output from hydropower plants, Deputy Minister of Industry and Trade Do Thang Hai asked government agencies to increase coal and gas output. To meet the demand of coal-fired power plants, Vietnam has also increased coal mining and imports. In the first five months of 2024, coal imports increased by 71% compared withthe same period last year, while coal mining output in the first two months of this year increased by 3.3%. Project88 highlighted Vietnam’s energy transition plan, which includes the use of liquefied natural gas, biomass and ammonia, all of which emit carbon dioxide. “For many years, Vietnam Electricity Corporation [EVN] has been operating at a continuous loss, so asking EVN to limit the operation of coal-fired power plants is impossible, because if cheap coal-fired power still makes a loss, then high-priced gas-fired power is even less profitable,” said Nguyen Pham Muoi. “This is a matter of economic efficiency. Of course, environmental protection is also important for the future, but for EVN, the present is more important. EVN’s leadership is only in office for the next few years. They do not sit there and think about the next 20 years, so urging them to cut coal is unrealistic.” <h4>Repression undermines energy transition</h4> Project88 also said freedom of association and expression were particularly important for climate policy. According to the U.N. High Commissioner for Human Rights, governments must “take measures to ensure that people can participate effectively in shaping climate policy at the local, national and international levels.” But Vietnam has a very poor track record when it comes to climate researchers and environmental activists. It has imprisoned six climate change leaders since 2021. Activists Nguy Thi Khanh, Dang Dinh Bach, Mai Phan Loi, Bach Hung Duong and Hoang Thi Minh Hong were convicted of tax evasion while Ngo Thi To Nhien, head of an energy policy research group, was convicted of “appropriating documents” from EVN. Before their arrest, they successfully lobbied the government to commit to decarbonizing the economy, culminating in Prime Minister Pham Minh Chinh’s announcement of a net zero emissions target by 2050 at the COP26 environment meeting in November 2021. “Hanoi has imprisoned six leaders of the climate movement and has effectively criminalized energy policy activism,” Project88 said. “These arrests have created a climate of fear surrounding policy activism that has made members of Vietnamese civil society unwilling to take part in policy activism, particularly in relation to the country’s energy transition.” <hr/> RELATED STORIES <a href="https://www.rfa.org/english/news/vietnam/vietnam-faces-global-calls-to-release-anti-coal-activist-06302022000029.html">Vietnam faces global calls to release anti-coal activist</a> <a href="https://www.rfa.org/english/news/vietnam/jailed-lawyer-starved-03182024214619.html">Vietnamese political prisoner 'starved' for two weeks</a> <a href="https://www.rfa.org/english/news/vietnam/vietnam-activist-released-09132023233643.html">Vietnam releases activist 18 months early</a> <hr/> The pressure group also pointed to a Directive 24, issued by the Communist Party’s Politburo in July 2023, aimed at ensuring there was no foreign influence on policy-making and suppressing efforts by activists to shape state policy and promote legal reform. As a result, billions of dollars in foreign aid, including climate finance, have been held up in recent years. As of May 2024, no JETP funds had been disbursed, it added. Germany-based environmental activist Thuc Quyen believes foreign investors are frustrated by legal hurdles and lengthy approval processes that have created bottlenecks and opportunities for corruption. “Vietnam’s human rights record has been widely criticized,” Quyen said. “Lax laws have fueled social unrest, with billions of dollars in foreign aid, including climate finance, held up in recent years.” RFA Vietnamese emailed the Ministry of Foreign Affairs seeking comment on the Project 88 report but did not immediately receive a response. The ministry does not typically respond to RFA’s emails. Translated by RFA Vietnamese. Edited by Mike Firn and Taejun Kang.
Content Type Text
Language English
NewsML Media Topics Arts, Culture, Entertainment and Media
Subtitles / Dubbing Available No
Rights RFA edit
Network VOA
Embargo Date August 22, 2024 00:04 EDT
Brand / Language Service Voice of America - English