Accelerating ASEAN's Energy Transition: Insights from ACEC at the MUFG NOW Event in Vietnam

On May 8, 2024, the Program Director of the Asia Clean Energy Coalition, Suji Kang participated in the inaugural MUFG NOW event at the Melia Hotel in Hanoi, Vietnam. This significant gathering, focused on Vietnam’s ambitious Net Zero goals by 2050, attracted top business leaders, policymakers, and industry experts to discuss the acceleration of the country’s energy transition and the scaling of finance for a greener future.

During the session titled "Decoding Decarbonization Pathways," where discussions revolved around transition technologies suitable for Vietnam, the readiness of business cases for these nascent technologies, necessary policy frameworks, and strategies to develop the country’s carbon market. As a panel, Suji shared insights into how various procurement options introduced in countries like Korea, Japan, and Singapore could serve as models for Vietnam’s renewable energy ambitions.

Highlighting the significance of PPAs, Suji emphasized their role in guaranteeing renewable energy at competitive rates and fostering the initiation of new renewable projects. She remarked on the progress Vietnam has made in implementing PPAs, driven by robust governmental leadership.

Addressing regional challenges, Suji advocated for more robust capacity-building programs that include sharing best practices and enhancing cooperation among ASEAN countries. She pointed out the crucial role corporates play in the renewable energy sector, where their demand for cost-effective clean energy is not just a business decision but a significant driver of policy and market transformations.

One major challenge highlighted was the legitimacy of cross-border clean energy trading within ASEAN. Suji stressed the need for a physical delivery system of power, a consistent method for tracking and retiring RECs, and regulatory alignment on labeling and claiming renewable energy sources. She shared that ACEC is actively working with ecosystem partners like the ITRACK Standard Foundation to facilitate cross-border transactions that comply with existing reporting frameworks.

The MUFG NOW event provided a crucial platform for discussing the strategies and frameworks necessary for advancing renewable energy trading and sustainability initiatives. The participation of ACEC's Program Director brought to the forefront the collaborative efforts required to accelerate ASEAN's journey towards a sustainable and integrated energy future, underscoring the importance of innovative financial strategies and strong policy frameworks to reach the ambitious decarbonization goals set by the region.