Abstract:

Currently, the solution to improve energy efficiency (EE) has been identified as one of the top priorities to achieve the goals of energy policy of countries and Vietnam: energy security, access, comfort and sustainability. Vietnam has issued energy efficiency policy framework and many related legal documents. In particular, financial incentive mechanisms play an important role in promoting technology investment and energy efficient use in different sectors, especially in the industry with the largest proportion of final energy consumption (TFES) (51.3% in 2019 and 47.9% in 2050). However, the process of implementing EE solutions in recent years has revealed inadequacies and lack of synchronization of financial mechanisms to promote energy efficiency, including legal frameworks, policies and EE financial instruments. That problem results to a slow development of the EE market, which is not commensurate with the high energy saving potential of Vietnam. This article aims to briefly present the current status of financial incentive mechanisms and propose some solutions to improve the financial mechanism to support investment and efficient use of energy in the 2021-2030 period