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

Pressure of integration and a global green fence

In the context of the world entering a period of strong green transformation, the requirement for sustainable development and greenhouse gas emission reduction is becoming a mandatory standard for every economy, then amending and supplementing the Law on Energy Efficiency and efficiency (SDNLTK&HQ) is an inevitable and urgent step for Vietnam.

The SDNLTK&HQ Law was promulgated by the National Assembly in 2010, effective since 2011, creating the first legal foundation to promote the effective use of energy in life, production and business. However, after 15 years of implementation, due to integration pressure and increasingly strict international commitments, this law has revealed many shortcomings, no longer keeping up with practical requirements.

Since committing to bringing net emissions to 0 by 2050 at COP26, Vietnam has actively implemented many solutions to realize this goal. In which, energy saving and green industrial transformation are essential pillars. However, the unsynchronized legal system is hindering the mobilization of resources, especially from the private and international sectors, for this goal.

Meanwhile, major export markets such as the EU, the US, and Japan are applying a series of new technical and environmental barriers such as carbon tax (CBAM), green passports, carbon traces, etc., directly affecting Vietnam's main export products such as textiles, footwear, plastic, steel, electronics, seafood, etc. Millions of workers and tens of billions of USD in turnover may be at risk if businesses do not convert technology and standards in time.

The new law must shift from "encouragement" to "competence"

A noteworthy point is that the current Law mainly stops at the level of propaganda, encouragement, and lack of binding sanctions. In the context of increasingly fierce global competition, the use of energy-saving must become a legal obligation, not just a slogan. The amendment of the law needs to aim at strengthening mandatory sanctions, standardizing production processes, labeling energy, periodic energy audits, etc.

Amending the law is also an opportunity for Vietnam to take advantage of the investment wave in green transformation, 4.0 industry, AI, big data, etc. These technologies not only help save energy but also increase productivity, reduce production costs, and increase competitiveness.

In particular, the study of establishing a Fund to promote energy saving and efficiency needs to be carefully considered, but should not be ignored. A flexible financial mechanism, separate from the State budget, could be the key to encouraging businesses to invest in green solutions.

Chairman of the Committee for Science, Technology and Environment Le Quang Huy said that in the context of global energy security facing many challenges, the increasingly depleted fossil energy supply, complicated climate change and urgent requirements for transition to a green economy, circular economy, the use of energy economically and efficiently has become an inevitable trend and a top priority for many countries in the world, including Vietnam.