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Energy Outlook shows Vietnam’s path to climate neutrality by 2050

Based on a nearly decade-long energy collaboration between Vietnam and Denmark, a new Vietnam Energy Outlook Report 2021 was launched on 2 June. The report explores how Vietnam can reach climate neutrality by 2050 at the lowest possible cost and with the greatest benefit for the economy and its people.

At the United Nations Climate Change Conference (COP26) in Glasgow in 2021, Vietnam pledged to reach net zero by 2050. Over the last few years, Vietnam has already taken a series of important steps to reduce CO2 emissions from the energy sector. The new pledge, however, marks a major shift in the development of the economy, including the energy sector.

To provide support and technical guidance, Vietnam and Denmark have entered a long-term cooperation agreement to promote a transition in Vietnam to a low-carbon economy. What already started in 2013, is now moving into its third phase.

Examining possible pathways for Vietnam’s green transition and the collaboration ahead, a new Vietnam Energy Outlook Report 2021 was launched on 2 June. On top of providing a trajectory for reaching Vietnam’s net zero target, the report explores the specific developments related to energy, transportation, balancing of power systems, and air pollution.

Read the Vietnam Energy Outlook Report in full and dive into findings, recommendations and possible pathways.

Potential for reaching the 2050-target of net-zero emissions

In recent decades, Vietnam has experienced average annual growth rates of around 7% in GDP and the growing economy has led to a significant increase in energy consumption as well as in CO2 emissions. It is key for both Vietnam’s and the global green transition that the country, with a population of almost 100 million people, can decouple economic and energy consumption and turn its energy system into a more sustainable and green energy system by investing in renewable energy and energy efficient technologies.

Kim Højlund Christensen, Ambassador of Denmark to Vietnam:

“Vietnam is an important partner for Denmark when it comes to green economy transition. We are happy to share with our local counterparts solid and well-proven Danish solutions, knowhow and best practices gained during the past 30 years to support Vietnam in realizing its great potential for green transformation and the country’s commitment to combat climate change and achieve net-zero by 2050 in the most efficient and just way.”

Kristoffer Böttzauw, Director General of the Danish Energy Agency:

“Vietnam has already come a long way with its green transition, which Prime Minister Pham Minh Chinh’s net zero pledge at COP26 in Glasgow illustrates. With the Vietnam Energy Outlook Report 2021 developed in close collaboration with the Vietnamese Energy Authorities, we aim to display how this target can be reached in time and at the lowest cost possible to the benefit of the country, its people, and the climate.”

The Danish-Vietnamese Energy Partnership

  • In 2013, Vietnam and Denmark entered a long-term cooperation agreement with the purpose of promoting a transition in Vietnam to a low-carbon economy. Efforts to this are financed by Denmark and administered by the Danish Energy Agency.
  • The Danish Energy Agency cooperates with the Ministry of Industry and Trade (MOIT) in Vietnam through the joint Energy Partnership Programme between Vietnam and Denmark (DEPP). The first phase from 2013-2017 focusing on low carbon development in industrial and building sectors. The second phase from 2017-2020 covered energy efficiency in the industrial sector, integration of renewable energy into the power grid, and long-term scenario modeling of the energy sector.
  • The new, upcoming phase is a five-year programme between 2021-2025, including offshore wind as a component and a workstream focused on developing economic incentive schemes for energy efficiency improvements in the industrial sector in Vietnam.
  • The Danish Energy Agency’s Centre for Global Cooperation partners with 19 other countries, that in total account for more than 60% of the global CO₂ emissions. The aim is to share Danish experience in shaping an energy system that combines a green, low-carbon, and reliable energy supply with economic growth.

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10 December 2019
Creating liveable, sustainbale and prospherous societies