Energy transition and decarbonization of PETROVIETNAM: Challenges, opportunities, and sustainable development orientations

Abstract

This paper analyzes the emissions profile, key challenges, and energy transition opportunities of the Vietnam National Industry - Energy Group (Petrovietnam), based on greenhouse gas inventory data, business-as-usual (BAU) emissions projections, and the Group’s energy development orientations. The results indicate that total greenhouse gas emissions during 2021 - 2025 were estimated at 129.4 million tonnes of CO₂ equivalent, with power generation accounting for 74%. Under the BAU scenario, emissions are projected to increase from 46.9 million tonnes of CO₂ equivalent in 2030 to 106.6 million tonnes in 2050, highlighting the growing need for emissions mitigation, particularly in power generation.

Based on an assessment of the challenges facing PETROVIETNAM’s energy transition, the paper proposes prioritising emissions reductions in existing operations, developing decarbonisation pathways for major emitting sectors, integrating environmental, social and governance (ESG) criteria into investment decisions, strengthening access to green finance, and improving independently verified emissions data systems. These orientations aim to align Petrovietnam’s decarbonisation efforts with national energy security requirements and long-term sustainable development.