China’s renewable energy firms seen benefiting from US$15.5 billion deal to help Vietnam reach climate goals
- Developed nations have pledged US$15.5 billion of funding under the Just Energy Transition Partnership pact to support Vietnam’s move away from fossil fuel
- Vietnam was the second biggest export market for Chinese solar panel makers in 2020, accounting for 12 per cent of the nation’s exports.
China’s renewable energy sector, the world’s largest, is expected to benefit from a multibillion-dollar international deal to help Vietnam reach its climate goals.
Chinese engineering companies and equipment makers could benefit from the revival of stalled renewable energy projects in the Southeast Asia nation, although the pace will hinge on government policies regulating and supporting the nascent industry, according to industry advisers.
The JETP in combination with falling solar panel prices will drive demand for solar projects for both Vietnamese and Chinese developers, said Frank Haugwitz, the founder of Asia Europe Clean Energy (Solar) Advisory.
01:13
Qatar opens first solar power plant built with Chinese equipment and technology
“While this should drive exports to Vietnam, it is hard to quantify the volume, given the Vietnamese government’s decision to keep the market’s development within limits,” he added.