Vietnam has made significant strides toward sustainable development with the introduction of its first National Sustainable Cooling Plan (NSCP). This ambitious initiative not only addresses the pressing energy demands associated with cooling but also positions Vietnam as a leader in the Southeast Asian energy transition. The NSCP outlines strategies projected to save over 800 terawatt-hours (TWh) of electricity by 2050 and aims for an impressive 97% reduction in cooling-related emissions compared to a business-as-usual scenario.
The plan aligns closely with the Kigali Amendment, committing to phase out hydrochlorofluorocarbons (HCFCs) by 2040 and cutting hydrofluorocarbon (HFC) consumption by 80% by 2045. A key aspect of the NSCP is its requirement that all new buildings adhere to green or energy-efficient standards by 2044. These measures illustrate Vietnam’s innovative approach to sustainable cooling, making it a blueprint for others in the region.
A National Push to Control Cooling Demand
Vietnam’s NSCP is hailed as a landmark achievement. John Robert Cotton, deputy director of the Southeast Asia Energy Transition Partnership, characterizes it as “the first national roadmap that comprehensively tackles one of the fastest-growing drivers of emissions and energy demand.” This makes it a pivotal element in the country’s journey toward net-zero emissions.
The government’s projections indicate that the NSCP will enable cumulative electricity savings of over 800 TWh by 2050. This shift is crucial, given the existing strain on Vietnam’s energy grid. Without the NSCP, cooling emissions were forecasted to peak at a staggering 116 million tonnes of CO₂ equivalent in 2045, amounting to nearly 10% of the nation’s total emissions. Cotton emphasizes that the full implementation of the NSCP is expected to lead to a 97% reduction in these emissions.
The NSCP is multi-faceted, targeting a wide array of areas from refrigerants and appliance standards to building designs and cold chain infrastructure. Through its comprehensive approach, it emerges as one of the most extensive cooling roadmaps in the Southeast Asian region.
Integrated Measures Across Buildings, Appliances, and Cold Chains
The NSCP is structured around four essential strands: appliance efficiency, refrigerant lifecycle management, passive and urban cooling, and cold chain development, with a phased implementation stretching through 2045. Cotton highlights the uniqueness of the NSCP, stating, “It integrates across institutions, policies, and financing, making cooling not just a technical fix but a coordinated national strategy.”
A centralized inter-ministerial framework has been established to avoid redundancy and ensure coordinated progress in various sectors. This level of integration is essential, especially since the demand for air conditioning currently presents the most significant immediate opportunity for efficiency enhancements. Cotton projects that a 50% improvement in efficiency by 2030 could yield nearly 10 TWh in savings that year alone, ballooning to nearly 70 TWh by 2050.
Currently, a staggering 98% of new buildings lack essential insulation, and 75% are designed with single-glazing windows. The NSCP aims for half of all new constructions to meet green or energy-efficient standards by 2039, with full compliance mandated by 2044.
Cold chain improvements are another focal point of the plan, targeting an estimated 8.8 million tonnes of annual food losses valued at around $3.9 billion. Importantly, the plan anticipates a post-2040 shift in focus to addressing refrigerant leakage, making the proposed lifecycle management roadmap crucial for future success.
The Policy and Implementation Barriers Ahead
While the NSCP sets ambitious targets, meeting them is fraught with challenges. Cotton points to compliance as a significant hurdle, noting, “Although energy efficiency building codes exist, 41% of new buildings exceed window-to-wall ratio limits, and nearly all are constructed without insulation.” To bridge this gap, the NSCP ties green certification and efficiency benchmarks directly to construction permitting and enforcement.
Moreover, existing standards and minimum energy performance requirements remain outdated. The plan seeks to update these standards, aligning them with the schedules for phasing down refrigerants and progressively banning high-global warming potential products beginning in 2029.
Another aspect needing rapid development is the management of refrigerants throughout their lifecycle. Establishing a national registry, mandating technician certifications, and strengthening monitoring and verification systems will be pivotal to this transition.
Financing remains a barrier as well. Cotton illustrates how “cooling-as-a-service removes the upfront barrier for users.” Additionally, trade-in programs supported by producer levies can expedite the replacement of outdated stock. Article 6 Internationally Transferred Mitigation Outcomes (ITMO) pilots could create fresh revenue streams, attracting international investment.
Lastly, there is an urgent need for regulatory alignment across various governmental agencies. The amended Law on Economical and Efficient Use of Energy is deemed a turning point, as it recognizes insulation as a viable energy-saving product and fortifies the legal framework for new standards.
A Model for Southeast Asia’s Rising Cooling Demand
As cooling demand escalates across Southeast Asia, Vietnam’s initiative presents a widely replicable model. Cotton emphasizes the importance of clear ministerial responsibilities, stating, “This clear division of responsibilities prevents overlap and ensures that policies on efficiency, refrigerants, and passive cooling are advanced in a complementary and coordinated manner.”
The financing mechanisms set forth in the NSCP could have far-reaching implications. Timelines for appliance efficiency, refrigerant transitions, and green building mandates are intricately connected to frameworks such as cooling-as-a-service, producer-funded trade-ins, and Article 6 carbon markets. This interconnectedness is regarded as one of the NSCP’s most critical contributions to the broader regional policy landscape.
Financing Models That Could Shift Adoption Rates
Among the plan’s prospective instruments, the alignment with carbon markets is potentially transformative. According to Cotton, “Vietnam plans to pilot Article 6 transactions, generating ITMOs from projects such as efficient AC roll-outs and refrigerant recovery.” These credits could provide a conduit for international climate finance directly into domestic initiatives.
In addition to carbon market engagement, the NSCP proposes various mechanisms to alleviate capital constraints. Trade-in and recycling initiatives, supported by producer levies, aim to hasten the withdrawal of inefficient appliances while improving refrigerant recovery. The cooling-as-a-service model enables households and businesses to spread costs over time, making it easier for them to adopt energy-efficient equipment and practices.
With an expectation of preserving nearly 100 million tonnes of CO₂ equivalent in cooling emissions by 2050, the opportunity for investment is substantial and poised to attract institutional capital.
The Role of International Partners
International organizations are poised to play a crucial role in the plan’s execution. Cotton highlights several areas in which support is vital: “Partners can assist with updating appliance standards, strengthening building codes, and establishing lifecycle management systems for refrigerants.” Other focal areas for support include blended-finance design, capacity building for technicians and builders, and robust monitoring and verification systems.
Such international collaboration will be a critical determinant of whether Vietnam achieves its contributions to Nationally Determined Contributions (NDCs) and long-term net-zero ambitions. It may also serve as a benchmark for neighboring countries as they formulate their own cooling transition strategies.
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