In the context of climate change and global pressure to reduce carbon emissions, developing clean energy is not just a solution for ensuring energy security but also a way to generate revenue from selling carbon credits. This is the dual benefit that Vietnam can leverage for sustainable development.

Ensuring Energy Security

Vietnam has huge potential for renewable energy, with over 3,000 km of coastline suitable for wind power, high solar radiation hours ideal for solar energy, and abundant biomass resources from agriculture. According to the Ministry of Industry and Trade, the technical potential of wind and solar power in Vietnam could reach 500 GW, several times the country’s current demand.

Developing clean energy not only reduces dependence on fossil fuels but also diversifies energy sources, increasing stability and sustainability. In particular, renewable energy projects can be deployed quickly, aligning with the country’s rapidly growing electricity demand. This allows Vietnam to take a proactive role in ensuring energy security, avoiding the risk of power shortages in the future.

New Economic Opportunities

Vietnam is one of the countries with great potential for carbon credits due to its renewable energy projects. According to estimates by the World Bank (WB), Vietnam could generate millions of carbon credits per year from wind power, solar power, and biomass energy projects.

Each carbon credit represents a reduction of 1 ton of CO2 emissions, and their value on the international market can range from $5 to $50 USD, depending on the project quality and market conditions.

For example, a 100 MW wind power project can reduce CO2 emissions by approximately 200,000 tons per year, which could generate potential revenue of $1 to $10 million USD per year from selling carbon credits. This additional income stream significantly enhances the feasibility and attractiveness of clean energy investments.

To prepare for the pilot carbon credit trading system, the Department of Climate Change (under the Ministry of Agriculture and Environment) is developing a national quota and credit registration system and collaborating with the Ministry of Finance to draft a decree on carbon trading while calculating and allocating quotas for facilities participating in the market.

Dual Benefits

Developing clean energy not only provides environmental benefits but also promotes sustainable economic growth. Investments in renewable energy projects will create thousands of new jobs in sectors such as manufacturing, installation, operation, and maintenance. At the same time, it will attract foreign investment, enhance technological capabilities, and improve management expertise in Vietnam’s energy sector.

Furthermore, reducing greenhouse gas emissions through clean energy projects will help Vietnam fulfill its international climate commitments, strengthening its global position. This also opens up opportunities to access green financing from international organizations and global investment funds.

Developing clean energy in Vietnam is not just a strategy for energy security—it also presents major economic opportunities through carbon credit trading. This is the dual benefit that Vietnam can leverage for sustainable development—meeting domestic energy demands while actively contributing to the global fight against climate change.

Translator: Mỹ Linh