Vietnam will find it difficult to fulfill COP26 commitments

DNHN - According to Mr Bruce Delteil, Managing Director of McKinsey in Vietnam, the present trend makes it doubtful that Vietnam will meet its COP26 obligations. Mr Bruce Delteil, Managing Director of McKinsey in Vietnam, observed at the Vietnam Connect Forum 2022 that the expansion of various sectors in Vietnam is now compliant with legislation.

In the state, technological application, fuel economy, and emission efficiency all remained unchanged from 2018. For this reason, Vietnam needs to keep up with new technology to make its economy more efficient.

This includes increasing renewable energy and land-use changes, electric transportation, carbon capture and storage (CCS) in the electricity industry, and more land use, land-use change, and forestry (LULUCF).  

According to McKinsey calculations, with big changes in technology and behaviour in 2025, such as increasing renewable energy capacity in the power generation structure (wind power increased by 23 per cent, solar power increased by 18 per cent), reducing energy emissions from the steel and cement industry, encouraging 100 per cent of road vehicles to use electricity, 30 per cent of passengers travelling by air to switch to high-speed rail, and protecting 7.5 million hectares of wetlands.

It was assumed that these substantial adjustments would require a huge budget of up to billions of dollars, but Bruce claims that many "saving" alternatives may be implemented immediately.

Furthermore, many investments that seem to be costly at first glance are economically advantageous in the long term, owing to future renewable energy capital (CAPEX) costs, wind, solar, and hydropower projects with new technology are more likely to be cost-competitive throughout their entire life cycle than thermal power plants.

Renewables also have lower operational costs (OPEX) than fossil fuels.

Electric cars, on the other hand, are cheaper than cars with internal combustion engines because their operating costs are much lower.

Hong Hoa