Statement: UK and EU welcome Viet Nam JETP progress
The UK and EU welcome progress on Viet Nam's Just Energy Transition Partnership as President Macron of France visits the country
On behalf of the International Partners Group (IPG), the United Kingdom and the European Union – IPG co-leads for the Viet Nam Just Energy Transition Partnership (JETP) – warmly welcome French President Emmanuel Macron’s visit to Viet Nam, reaffirming support for Viet Nam’s goal to deliver a clean energy transition that is inclusive and rooted in sustainable growth on the pathway to ‘net zero’ emissions by 2050. We celebrate progress in the announcement of two JETP supported investment projects.
On 26 May 2025, President Macron and President Lương Cường witnessed the signing of a Credit Facility Agreement between Viet Nam Electricity National Power Transmission Corporation (EVN NPT) and Agence Française de Développement (AFD) of €67 million to build 500kV transmission lines and substations across the Binh Duong and Dong Nai provinces. This project will increase the national transmission network’s capacity to integrate renewable energy and deliver reliable electricity in key economic regions in southern Viet Nam. By reinforcing the power grid, this investment directly contributes to the implementation of Viet Nam’s recently revised Power Development Plan (PDP8).
On 27 May 2025, a Memorandum of Understanding (MoU) was signed between Viet Nam Electricity (EVN) and AFD as coordinator of six IPG Development Finance Institutions (AFD, EIB, JICA, KfW, CDP, and Proparco) to provide up to €480 million for long term financing to support the construction of the first 1200 MW Pumped Storage Hydropower project in Viet Nam located in Bac Ai, Ninh Thuan province. The project also benefits from €10 million of technical assistance, funded by the EU and managed by AFD. This large-scale energy storage project will improve grid resilience and stability to meet peak demand enable further integration of variable renewable energy sources into Viet Nam’s energy mix.
France’s and IPG’s €547 million financial contribution to these two flagship energy transition projects marks an important step towards delivering the public finance commitments under the JETP.
The EU and UK remain fully committed to the JETP as co-leads, working with Viet Nam as it continues to raise ambitions for tackling emissions, limiting coal and increasing the share of renewables as set out in the recently revised of National Power Development Plan (PDP8).
In addition to mobilising project-specific finance, the IPG will continue to engage closely with the Government of Viet Nam, the Glasgow Financial Alliance for Net Zero (GFANZ), and wider JETP partners, to promote a strong enabling policy environment for developers and investors that drives Viet Nam’s future green growth ambition.
What is the JETP ?
The Just Energy Transition Partnership (JETP) is a cooperation initiative and related Political Declaration agreed in December 2022 between Viet Nam and the International Partners Group (IPG; now comprised of the European Union, the United Kingdom, Canada, Denmark, France, Germany, Italy, Japan, Denmark and Norway, and co-led by the EU and the UK. The overarching goal is to support the country’s energy transition trajectory towards its 2050 net zero emissions commitment. The JETP Political Declaration consequently sets out 3 main targets:
- Accelerate and cap the peaking of GHG emissions from the power sector at 170 million tons of CO₂ equivalent by 2030;
- Limit the installed capacity of coal-fired power plants to 30.2 gigawatts by 2030;
- Increase the share of renewable energy in the power mix to 47% by 2030, promoting investments in wind, solar, and other clean energy sources.
In support of these targets, the JETP partners secured original funding commitments of $15.5 billion, including $7.5 billion public sector finance from IPG members (grants, concessional and commercial loans and instruments) and $7.5 billion private sector finance facilitated by the Glasgow Financial Alliance for Net Zero (GFANZ).
JETPs are also being implemented to support the energy transitions in South Africa, Indonesia and Senegal
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