USD114 billion for the Net Zero emissions roadmap to 2040

On the afternoon of April 12, in Hanoi, Vietnam Greenhouse Gas Partnership Network (GHGVietnam) was officially established.

This is an initiative of organizations committed to supporting the business sector in inventorying greenhouse gases and developing a low-carbon economy to provide comprehensive solutions for a green Vietnam.

Core members of the Network include: the Center for Research, Consulting and Training on Local Development (STG); the Center for Eco-Community Development (ECODE), Institute of Technology Development (ITD); Vietnam Educational Solution Trading and Services Joint Stock Company; Thuan Phuoc Company Limited.

Sharing at the launching ceremony, Mr. Nguyen Duc Vinh, Interim Head of GHGVietnam, said that the Network was born with the goal of promoting cooperation, sharing information, experience, and resources among partners to support Vietnamese partners and business organizations in greenhouse gas inventory.

The network aims at green transformation, applying the circular and low-carbon economies. By 2030, GHGVietnam has determined its vision to become an Association gathering leading partners to support and promote the business sector to take action to reduce greenhouse gas emissions and apply circular economy towards green transition and low carbon economy.

Currently, Vietnam is actively and proactively implementing commitments from the UN Climate Change Conference in Glasgow (COP26), joining 147 countries in setting their Net emissions levels to zero by mid-century. In particular, in the context of the European Union promulgating the Carbon Border Adjustment Mechanism (CBAM) to control the amount of greenhouse gases emitted from goods imported into the EU, greenhouse gas inventory becomes even more important for main exporting businesses to this market.

GHGVietnam's mission is to create and represent business organizations and business sectors in Vietnam to reduce greenhouse gas emissions and implement a circular economy.

"Therefore, we set out a strategy to focus on training in fields related to greenhouse gas inventory, ESG sustainable development standards, green standards, greenhouse gas inventory consulting and emission mitigation appraisal, science and technology development, and technical transfer. The operating strategy also attaches importance to communication, policy advocacy, and domestic and international cooperation," Mr. Vinh shared.

One of the important elements in the greenhouse gas inventory process is access to green finance. On this issue, Mr. Nguyen Dinh Dap, Ministry of Natural Resources and Environment, said that in the National Report on Climate and Development in Vietnam 2022, the World Bank (WB) commented that to implement Vietnam's Net Zero emissions roadmap, the total capital need for the period 2022 - 2040 alone amounts to USD 114 billion (an average of 2.1% of GDP per year), mainly to support the transition process from fossil energy to renewable energy.

In addition to mobilizing domestic resources, Vietnam proactively promotes relations with foreign governments, organizations, international financial institutions, international credit funds and the private sector... to mobilize financial support, investment and green technology for Net zero emissions goals by 2050 as committed at the COP26.

Also at the ceremony, the Vietnam Greenhouse Gas Partnership Network signed cooperation agreements with strategic partners, including consulting businesses, investment funds, research institutes, associations, and universities.

Vietnam Greenhouse Gas Partnership Network is an initiative of organizations committed to supporting the business sector in inventorying greenhouse gases, applying a set of environmental, social and governance (ESG) criteria, and developing businesses towards low carbon economy, circular economy and green transition.

ESG adoption is on the rise, fuelled by client demand and a desire to make an impact. As ESG momentum continues to gainsteam, investors are refining and evolving their strategies. This can be seen in the implementation arena, where investors aremoving away from basic screening methods towards more targeted and sophisticated strategies, including thematic and impactinvesting. Meanwhile, ESG integration remains the top implementation strategy — showing how investors are taking a holisticapproach as they look to comprehensively embed ESG into the investment process.

GHGVietnam network operates on the principle of mutual development, complying with the guidelines and policies of the Party and State, with the guiding principle and purpose of creating platforms for training and consulting on greenhouse gas inventory, technology application, and solutions to reduce greenhouse gas emissions for domestic enterprises and foreign enterprises investing in Vietnam towards the UN sustainable development goals (SDGs) and implementing Net Zezo commitment of the Vietnamese Government by 2050.