New rules of the game in the quest for net zero emissions by 2050

New rules of the game in global trade and investment

Mr. Nguyen Tuan Quang - Deputy Director of the Department of Climate Change, Ministry of Natural Resources and Environment said that the goal of zero emissions by 2050 is mainly achieved through strong energy transition and low-emission development. This is also the new "rule of the game" on global trade and investment that has been established since the 26th Conference of the Parties (COP 26) to the United Nations Framework Convention on Climate Change (UNFCCC).

Therefore, reducing greenhouse gas (GHG) emissions and converting energy from fossil fuels to clean, renewable energy is an opportunity to promote sustainable economic restructuring, seize opportunities to improve economic competitiveness and take advantage of trade and investment cooperation opportunities for development.

According to Mr. Quang, after the COP26 Conference, the Government has established a National Steering Committee to implement Vietnam's commitments at COP26, chaired by the Prime Minister and with members being leaders of ministries and sectors. The Prime Minister has resolutely directed ministries and sectors to urgently research and develop programs and plans to implement Vietnam's commitments.

The Ministry of Natural Resources and Environment (MONRE), as the standing agency of the Steering Committee, has made efforts to implement its tasks and achieved important results. In 2022, the Ministry of Natural Resources and Environment submitted to the Government for promulgation Decree No. 06/2022/ND-CP stipulating the contents on GHG emission reduction, ozone layer protection and carbon market organization and development; submitted to the Prime Minister for approval the Project on tasks and solutions to implement the results of the COP26 Conference; National Strategy on Climate Change for the period up to 2050...

Together with the Ministry of Natural Resources and Environment, in recent times, ministries and branches have also actively implemented activities to complete the legal basis in implementing the goal of achieving "zero" net emissions by 2050. The ministries have submitted to the Government a Decree regulating the mechanism for direct electricity purchase and sale between renewable energy power generation units and large electricity users (DPPA), the mechanism for adjusting average retail electricity prices and electricity price frameworks, the mechanism for encouraging rooftop solar power... to promote the development of renewable energy and clean energy in the medium and long term in our country; the Project for sustainable development of one million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta by 2030; the Project for improving forest quality to preserve forest ecosystems and prevent and combat natural disasters by 2030...

Businesses working together towards a common goal

Accompanying state management agencies in activities to realize the goal of achieving net zero emissions by 2050, it is impossible not to mention the participation of organizations and enterprises. Enterprises have become more aware of the benefits of participating in implementing the commitment to net zero emissions and conducting GHG inventories; especially enterprises subject to the European Union's Carbon Border Adjustment Mechanism (CBAM).

State-owned corporations have taken the lead in researching and developing new energy sources and implementing green transformation. Enterprises have also promoted digital transformation in management, operation, energy and material saving, and GHG emission reduction. Propaganda and innovation activities in communication have been effectively integrated by enterprises into annual plans and programs, regularly organizing seminars, training programs, and disseminating knowledge on environmental protection and climate change response to all staff, employees, affiliated units, and partners.

Banks and credit institutions also develop green credit programs and packages that are suitable for the characteristics of business operations and green transformation. Although the proportion of green credit outstanding is still quite small in the total credit outstanding, it tends to increase rapidly and has clearly demonstrated effectiveness, contributing to sustainable growth, environmental protection, and response to climate change.

"In the context that the world is facing energy crisis, inflation, regional instability, some countries have decided to postpone the implementation of commitments to respond to global climate change, with the close direction of the Government, Prime Minister and the active participation of ministries, branches, localities and enterprises, Vietnam has achieved positive results in implementing commitments at the COP Conferences in the past time, which have been highly appreciated by the international community, contributing to enhancing the national position and attracting foreign investment to Vietnam" - Deputy Director of the Department of Climate Change Nguyen Tuan Quang emphasized.