AmCham Hosts John Kerry for
Discussion on Energy Development
Economic growth in Vietnam has spurred significant growth in electricity demand and it is estimated that the country will need $8-10 billion annually in energy sector investment over the next decade to account for increasing energy demand and forecasted energy shortages. Vietnam is also in the middle of an energy transition and has committed to reach net-zero emissions by 2050. Private sector participation will be crucial to support Vietnam towards the sustainable development of the energy system.
Almost 100 AmCham members met on Tuesday morning to discuss Vietnam’s energy development with US Special Presidential Envoy for Climate John Kerry. We discussed how it is essential to mobilize invested resources that are ready to produce power. Vietnam currently is paying high market prices for a portion of its coal needs and high energy loss through substantial energy inefficacy. Investors need access to renewable energy, yet there are thousands of megawatts of wind and solar projects which are unable to get to market due to lack of regulation and insufficient investment in the grid.
From a financing perspective, AmCham believes that public policy should address critical challenges, specifically through: carbon pricing and carbon markets; blended finance; improving the investment climate by adopting robust disclosure and governance practices, including transition planning; and biodiversity. AmCham members are eager to partner on technology solutions and sustainable finance to accelerate Vietnam’s energy transition.
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