Vietnam's Decarbonization and Energy Transition

closed

This Grant will support a Technical Assistance (TA) to scale up ongoing green growth efforts and support low carbon transition of industrial sector through deeper analysis and piloting in selected industries. The project will also create innovative technologies roadmap and interventions which could be supported under the ongoing Vietnam Scaling Up Energy Efficiency (VSUEE) and Vietnam Energy Efficiency for Industrial Enterprises (VEEIE) projects. The proposed TA will complement what has been planned under the Pillar two “Demand Side Decarbonization” of Vietnam Low Carbon Infrastructure Development (P176851) Programmatic ASA (LCID PASA). Component 1: Promoting and piloting innovative and low carbon technologies, including circular economy (CE) approach in the energy intensive industrial sector (USD 2.5 million). The example technologies would include direct electrification of industrial processes, application of heat pumps, hydrogen production and application, carbon capture & use of industrial processes, etc. Piloting of innovative decarbonization technologies would be based on the deep dive in few selected industries and would draw heavily from successful examples of innovative technologies and CE adoption in other countries which are still not implemented or commercialized in Vietnam. The key activities are: (1) Policy analysis of industrial and energy sectors to assess its strengths and weaknesses to support green transition and how these can be further improved; (2) Decarbonization roadmap and pilot implementation plan that will be developed collaboratively with the respective industries, MOIT and relevant government departments. These roadmap(s) will provide details on sector specific (cement, steel, chemicals etc.) innovative and low carbon technologies commercially available in the market along with financial viability and benefits in terms of improving energy and resources efficiency; and (3) potential project pipeline and investment opportunities will also be explored to ensure the scale and sustainability of this work.Component 2: Knowledge products and capacity building (USD 0.5 million). The component creates innovative technology database based on data collection, assessment and technical reports prepared under Component 1.Key activities will include: (1) Creation of innovative technologies database for high emission industrial sectors; and (2) Capacity building of different stakeholders on decarbonization through trainings, workshops and study tours.Component 3: Improvement of readiness for sectoral carbon crediting in selected 2 - 3 sub sectors (USD 1.1 million). Key activities will include: (1) Improve energy performance database and monitoring, reporting and verification (MRV) system readiness at both the MOIT and IE levels as needed for sectoral crediting; (2) Catalyze successful implementation of EE deployments in the selected sub-sectors by rewarding data submission by IEs in a required format; and (3) Develop options to link the sector database and MRV system with Vietnam’s NDC in a consistent and harmonized manner.