On 23rd January 2024, in Hanoi, the second meeting of the Steering Committee co-chaired by the Deputy Minister of Industry and Trade, H.E. Nguyen Sinh Nhat Tan and the European Union Ambassador to Viet Nam, H.E. Julien Guerrier has been successfully organized. The meeting aimed to update the disbursement progress of the budget support component under the EU – Viet Nam Sustainable Energy Transition Programme (SETP) and the implementation progress of four complementary support projects, and approve the work plans of these four complementary support projects in 2024.
In the opening remark, Deputy Minister Nguyen Sinh Nhat Tan underlined that the SETP, with an ODA grant of EUR 142 million, is important not only in strengthening the diplomatic relationship between Viet Nam and the European Union, but also in supporting Vietnam to realize the goal of energy transition, contributing to the realization of net-zero emission commitment by 2050 through a non-refundable aid worth 121 million EUR and four complementary projects worth 21 million EUR.
The EU Ambassador, Mr. Julien Guerrier, expressed his appreciation for Viet Nam’s efforts and achievements in developing green energy sources, involving both the Government and the private sector. He also highlighted the European Union’s initiatives to support the execution of the Just Energy Transition Partnership (JETP), which Viet Nam has pledged to join, and to present the Resources Mobilization Plan (RMP) at the COP 28 conference. He stressed the importance of enhancing collaboration and communication at the national level, as well as the active role of the private sector, in order to achieve these objectives.
Up to this point, the first disbursement in 2022 and the second in 2023 have been fully disbursed with 26 million EUR and 22 million EUR, respectively. Currently, the Ministry of Industry and Trade (MOIT) is preparing disbursement documents for the third tranche and is expected to submit them in March 2024. It is expected that the third tranche will continue achieving 100% of amount of the disbursement as committed. However, for the fourth disbursement tranche in 2024, three indicators on Training centres on Energy Efficiency, Testing Labs on Energy Efficiency, Designated Energy Users (DEUs) adopt Energy Management Systems (EMS) are likely unattainable, and therefore it is proposed to the Delegation of the European Union (EUD) that those indicators should be revised reflecting the current situation in Viet Nam.
In the second part of the meeting, four delegates representing the complimentary support projects presented updates on the implementation progress and proposed their respective work plans for 2024.
The EU – Viet Nam Sustainable Energy Transition Facility, referred to as the EVSET Facility is continuing to carry out technical support activities for the Electricity and Renewable Energy Authority (EREA), Electricity Regulatory Authority (ERAV), Department of Energy Efficiency and Sustainable Development (DEESD) and Center for Energy Technology and Information (CETI). Some terms of reference (ToRs) of the activities have been approved by the MOIT and the EUD and have started to be implemented, the rest are in the process of being reviewed and finalized. In addition, the project is implementing support activities for non-MOIT entities and for the Viet Nam Energy Partnership Group (VEPG) energy policy exchange platform.
The Global Green Growth Institute (GGGI) continued the meeting with the updates of the Accelerating Innovative Start-ups for Energy Efficiency” – AIS4EE project. The startup acceleration program targets two groups: startups that already have market-fit products and young startups.
The project of Accelerating energy efficiency in large industries through energy management systems, system optimisation and the promotion and adoption of energy efficiency in small and medium-sized enterprises (IEEP) implemented by UNIDO has completed its inception phase and the development of work plan, communication plan, and plan for cross-cutting themes. Currently, UNIDO is implementing activities to select contractors, develop ToRs, organize seminars, etc.
The last complementary project of Public Awareness Raising on Renewable Energy and Energy Efficiency in Viet Nam referred to as the PAR3E project implemented by OXFAM proposed that it will firstly focus on conducting comprehensive research to assess the current knowledge/awareness of stakeholders and communication activities and communication channels, system on renewable energy and energy efficiency in Viet Nam.
In conclusion, Deputy Minister Tan acknowledged the importance and relevance of four complementary projects, as well as the great efforts of implementing agencies in navigating the projects and achieving some initial outcomes. Deputy Minister Tan agreed that in 2024, there needs to be a more flexible mechanism to remove difficulties in the approval process for the modifications of some approved activities and tasks when needed to create optimal conditions for the projects’ implementation.
The EU Ambassador, H.E. Guerrier expressed his pleasure that the two first disbursement tranches have been successfully completed, the indicators of the third disbursement tranche will be collected and verified, and there should be strong justifications and prompt official request from MOIT for the revision of the fourth tranche’s indicators for the EU’s exceptional approval. Finally, the Co-chairs confirmed their approval on the proposed work plans of four projects.
