Vietnam boosts coal use plan for 2030 as G7 climate offer stalls

Vietnam boosts coal use plan for 2030 as G7 climate offer stalls

Vietnam has increased its coal power target for 2030 under a revised draft energy plan, government documents seen by Reuters show, while renewables goals were scaled back, in a potential blow to rich nations' funding initiatives for cleaner energy. The updated draft, dated Nov. 11, was circulated by Vietnam's industry ministry as climate negotiators from the Group of Seven nations failed to clinch a financing deal with Vietnam on a "Just Energy Transition Partnership" at the global climate COP27 summit, which ended in Egypt on Sunday.

The industry ministry did not reply to a request for comment.

The latest plan backtracks on a draft released just last month that would have slowed the growth in coal use by the end of this decade. A meaningful drop in coal capacity would come only in 2045.

Vietnam, one of the world's top 20 coal users, has seen protracted wrangling among competing government interests over its power development plans for this decade, and there may be further changes in the weeks and months ahead, Vietnam-based investors said.

This has complicated the task of climate negotiators, led by European Union diplomats, who are holding out hope of securing an agreement with Vietnam at a summit in Brussels next