The Vietnam Oil and Gas Group (PVN) and the Asian Development Bank (ADB) today signed aMemorandum of Understanding (MOU) on establishing strategic partnership in the period of 2021 – 2024 to promote clean and renewable energy development as well as to achieve PVN’s targets in green energy transition.
The signatories are Mr. Pham Tien Dung, Vice Presidenton PVN’s behalfand Mr. Andrew Jeffries, ADB Country Director for Viet Namon ADB’s behalf.
The MOU establishes the foundation for cooperation activities between PVN and ADB such as strategy and roadmap for greenenergy transition; carbon capture,utilization and storage; hydrogendevelopment; offshore wind energy development.
“We are pleased to be the first agency to establish a partnership with ADB to develop clean and sustainable energy in Viet Nam,” said Mr. Pham Tien Dung.“With expertise and experience in the field of energy transition, particularly in the areas of carbon capture, use and storage, hydrogen energy, offshore wind energy, and energy efficiency, ADB will support PVN in green energy transition towards the target of emission reduction that Viet Nam committed.”
With the targets in climate change mitigation and reduction of greenhouse gas emission, PVN is making efforts to prepare green energy transition strategy aimingto shift PVN’s operations and value chains toward more climate resilience in oil and gas field, as well as expanding its businesses into new and renewable energy sector.
“ADB and PVN establish a partnership for collaboration and cooperation in the activities identified for mutual interest of both parties,” said Mr. Jeffries. “As a multilateral financial institution and as a catalyst for global and regional climate funds, ADB could provide support to PVN through policy and technical advice, funding for investment from its own financing and/or leverage financing from other sources.”
To support initial activities under the MOU, ADB will use technical assistance resources and mobilize additional fund from other sources, among which the Australian government has confirmed its funding support to develop astrategy and roadmap for PVN’s green energy transition.
The MOU signing between the two sides demonstrates PVN's determination in international cooperation towards strategic activities that contribute to realizing the commitment of the Government of Viet Nam at the UN Climate Change Conference(COP 26) in Glasgow, implementing the mechanisms under the Paris Agreement, to achieve net “zero” emissions by 2050.
ADB has been supporting its developing member countries for enabling policy framework, sharing practices and experiences, identifying key projects and preparing feasibility studies, and piloting and scaling-up business models.ADB has also been coordinating and cooperating with global and regional think tanks and center of excellences for technology innovation and promotion for clean and renewable energy development.