ADB, PVN establish partnership to promote green energy development in Vietnam

The state-run Vietnam Oil and Gas Group (PVN) and the Asian Development Bank (ADB) today signed a Memorandum of Understanding (MOU) on establishing a strategic partnership in the period of 2021 – 2024 to promote clean and renewable energy development as well as to achieve PVN’s targets in the green energy transition.

Overview of the signing ceremony.

The signatories are Pham Tien Dung, vice president on PVN’s behalf, and Andrew Jeffries, ADB Country Director for Vietnam on ADB’s behalf.

The MOU establishes the foundation for cooperation activities between PVN and ADB such as strategy and roadmap for green energy transition; carbon capture, utilization, and storage; hydrogen development; 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 Vietnam,” said Pham Tien Dung. “With expertise and experience in the field of the 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 the green energy transition towards the target of emission reduction that Vietnam committed.”

With the targets in climate change mitigation and reduction of greenhouse gas emission, PVN is making efforts to prepare a green energy transition strategy aiming to shift PVN’s operations and value chains toward more climate resilience in the oil and gas field, as well as expanding its businesses into the new and renewable energy sector.

“ADB and PVN establish a partnership for collaboration and cooperation in the activities identified for the mutual interest of both parties,” said 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 funds from other sources, among which the Australian government has confirmed its funding support to develop a strategy 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 Vietnam at the UN Climate Change Conference (COP 26) in Glasgow, implementing the mechanisms under the Paris Agreement, to achieve net “zero” emissions by 2050.