Green economy key for sustainable growth

Green economy is key to sustainable growth.

Promoting green economic initiatives is a matter that Vietnam and many international organisations are focusing on with the aim of reducing greenhouse gas (GHG) emissions by at least 55% by 2025 and become carbon neutral by 2050.

At the Green Economy Forum (GEF) 2023 held in Hanoi recently, the Government welcomed and supported important strategies and initiatives of the European Union (EU) in strengthening cooperation among the business communities to achieve green agreements, as well as maritime economy and digital economy strategies.

Prime Minister Pham Minh Chinh underlined that Vietnam and the EU shared the new vision, new mindset, new determination and drastic actions for green growth and green development.

Vietnam is focusing on speeding up three strategic breakthroughs in institutions, infrastructure and human resources, promoting growth on the foundation of technology and innovation, he said.

Vietnam has been one of the four signatories of the political declaration on the establishment of the Just Energy Transition Partnership (JETP) with G7 countries and international partners, including the EU.

With its abundant natural resources of wind energy and solar power, Vietnam is ready to share its potential and strengths, and cooperate with EU partners in promoting green energy transition and developing renewable energy, and green hydrogen, said the PM.

Meanwhile, EU Ambassador to Vietnam Julien Guerrier said that thanks to policies and solutions to support green economy development and climate change response, last year, GHG emissions in the EU dropped about 2.5%, while the union’s economic growth increased by 3.5%. This is evidence that the successful reduction of greenhouse gas emissions is possible in parallel with maintaining global economic growth, he stated.

He said that Vietnam, with its net-zero emission commitment by 2050, shares the same interest with the EU in switching to a green and low-carbon economy, which helps shape the bilateral partnership.

Illustrative image (Source: Internet)

Through the JETP mechanism, the EU will provide significant resources to Vietnam to accompany the country, he said.

Guerrier underlined that the pursuit of sustainable growth in the economy brings both opportunities and challenges. It will open new pathways for innovation, job creation and economic growth, enabling the building of a stronger and more inclusive society. On the other hand, it reassesses current systems and thinking to shift to sustainable production and consumption models.

By promoting collaboration between public authorities and the private sector, the EU and Vietnam can unlock the potential to create a greener, more prosperous future, he held.

The ambassador also stressed the need for the business communities of both sides to discuss measures to take full advantage of the EU-Vietnam Free Trade Agreement (EVFTA), thus strengthening the bilateral trade partnership.

He advised European businesses to consider increasing investment and establishing research centres in Vietnam in new fields such as renewable energy, digital transformation, smart agriculture, and low emission industry. This will help to contribute to turning Vietnam into an innovation centre and a regional research hub in the field of green transformation, and forming a green hydrogen value chain in Vietnam./.