Illustrative image. (Photo: VNA)

Hanoi (VNA) – As a rapidly growing economy, Vietnam is facing manydifficulties in ensuring energy security, green and sustainable development,insiders have said.

Nguyen Tuan Anh, Deputy Director of the Electricity and Renewable Energy Authority under the Ministry of Industry and Tra⭕de (MoIT), said in line with draft Power Development Planning (PDP) VIII, the country willnot develop new coal-fired plants after 2030.

The proportion of coal-fired power in the overall power capacity will fall from 25.7% in 2030 to 9.6% in 2045through the transfer biomass and other clean energy.

He emphasised that developingthe industry toward sustainable energy and ensuring an adequate and stable supplyof electricity at a reasonable price is always a challenge for developingcountries, including Vietnam.

According to Nguyen Thi Hong, Governor of the State Bank of Vietnam (SBV), to promotegreen growth in the 2021 – 2030 period, the country will focus on promotingresources from commercial loans and private investment, along with preferentialpolicies on tax and official development assistance (ODA).

One of the challenges for the implementation of credit for green projects isthat Vietnam does not have specific criteria and a list of green projects fordifferent industries as the foundation for credit institutions to determine creditgranting for the next period, she was by Cong Thuong (Industry and Trade)newspaper as saying.

Hong noted that investment ingreen fields, especially renewable energy and green buildings, often requires along payback period and large investment costs, while loans from creditinstitutions are usually short-term capital, making it difficult for them to balancecapital as prescribed.

The SBV has rolled outsolutions to boost green growth and sustainable development, including shifting the credit flow toenvironment-friendly projects, promoting green consumption and serviceindustries, clean and renewable energy as well as low-carbon production industries.It will enhance the efficiency of credit capital allocation to serve socio-economicdevelopment while expanding green financing, she said.

As of late June, the totalgreen outstanding debt🅺s reached 474 trillion VND(20.2 billion USD), up 7.08% compared with thesame period last year, focusing on renewable and clean energy./.