The G7 and Vietnam Reach $15.5 Billion Deal to Exit Coal and Enter Renewable Energy Production.
On December 14, 2022, the G7 and the nations of Norway and Denmark approved a deal with Vietnam called the Just Energy Transition Partnership. The agreement is intended to help Vietnam accelerate its transition away from coal power and towards renewable energy sources.
The goal is for Vietnam is to hit net zero emissions by 2050. It is a goal that experts say needs to be met to cap global emissions at 1.5 degrees Celsius (2.7 degrees Fahrenheit.) This agreement is one of many similar agreements developed nations are brokering, the first one signed in South Africa last year and another signed with Indonesia last month.
John Kerry, the current U.S. Climate Envoy, has made numerous trips to Vietnam urging the government to call off pending coal power projects in favour of clean energy initiatives with wealthier nations.
The money being spent, which would be sourced from both the private and public sectors, will be used to expand the electricity grid in Vietnam and increase renewable energy production. The country will also raise its 2030 target for renewable energy to 47% from a previous forecast of 36%.
If these targets are achieved, it is expected to result in around 500 megatons of cumulative emissions saved by 2035.
