Amending the Law on Energy-saving and efficient Use is an urgent requirement

Minh Quang |

At the 9th Session, the National Assembly discussed the draft Law amending and supplementing a number of articles of the Law on Energy Efficiency and Savings (SDNLTK&HQ), marking an important step for Vietnam to implement sustainable energy conversion.

After 15 years of implementation, the Law SDNLTK&HQ issued in 2010 has contributed to the formation of awareness and action of the whole society on energy-saving use. However, rapid development and integration requirements have exposed many provisions of the law as inadequate and no longer suitable in the current context.

According to Minister of Industry and Trade Nguyen Hong Dien, it is necessary to amend the law to fully institutionalize the policies and guidelines of the Party and State, while increasing the effectiveness of state management and creating a favorable legal corridor to promote energy-saving activities.

One of the important highlights of the draft amendment is the simplification of administrative procedures, decentralization and delegation of authority in management. The Ministry of Industry and Trade has carefully reviewed the provisions to cut unnecessary business conditions, creating more favorable conditions for businesses in accessing energy-saving technology. Along with that, it is necessary to clearly propose the responsibilities of state agencies, businesses and people in implementing energy-efficient use solutions.

The National Assembly's Committee on Science, Technology and Environment also highly agreed with the proposal to amend the law. Chairman Le Quang Huy said that Vietnam needs a stronger legal framework to promote energy-saving production and consumption models, especially in the context of implementing commitments at the COP26 Conference on carbon neutrality by 2050.

In particular, this draft law makes proposals related to the development of an index to assess the level of energy use, regulations on energy labeling for construction materials and the establishment of aSDNLTK&HQ Promotion Fund. These contents have all received great attention because they have a direct impact on the market and consumer behavior. Energy labeling for construction materials - if implemented in accordance with the roadmap and with an inspection and support communication system - will create a major change in the construction industry, which is consuming very high energy.

Regarding the fund to promote economical and efficient energy use, there are still two different views given: one thinks that it is necessary to study carefully to avoid conflict with the budget law and current regulations; The remaining viewpoint agreed to include this provision in the law in order to institutionalize Resolution 55-NQ/TW and create a financial instrument to support the implementation of climate commitments. The Committee of Science, Technology and Environment is more about the second plan, but requires specific and clear regulations on the operation mechanism and the target of using the fund.

In the draft law, the model of energy service company (ESCO) is also considered to be a prominent new point. This type of enterprise operates according to the previous investment model - later saving, meaning that the enterprise invests in energy -saving equipment for the use establishment, then recovers capital from the energy saved. In the world, this model has proven effective in many developed countries. However, in Vietnam, ESCO is still fragmented, lack of legal corridors and support policies. The introduction of this model will create conditions for businesses to access capital, technology and market more favorable, promoting the development of energy -saving industry.

Obviously, amending the Law onSDNLTK&HQ is not simply to adjust some technical regulations, but also to be a long-term strategy, laying the foundation for a green, sustainable development model. Vietnam is facing a great opportunity to attract international resources on green finance and energy-saving technology - but that can only become a reality if we have a clear, transparent and stable legal framework.

Amending the Law SDNLTK&HQ is a prerequisite to bring climate commitments into life, helping businesses reduce costs, improve competitiveness and people enjoy a better living environment. This is the time when a high consensus is needed between the legislative body, the Government and the whole society to effectively implement the law - for a sustainable energy future for Vietnam.

Minh Quang
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