Law on Energy Efficiency and Conservation to be amended

The March-5 conference to gather feedback on the Draft Law on Energy Efficiency and Conservation

On March 5 in Hanoi, the Ministry of Industry and Trade held a consultation conference to gather feedback on the Draft Law on Energy Efficiency and Conservation (amended).

The conference played a crucial role in collecting in-depth opinions from regulatory agencies, experts, businesses, and relevant stakeholders, aiming to improve the legal framework and promote sustainable energy use in Vietnam.

Law amendment for green development

In her opening speech, Nguyen Thi Lam Giang, Head of the Ministry of Industry and Trade’s Energy Efficiency and Sustainable Development Department, stated that the amended law introduces new provisions to encourage the transition to a green economy, promote investment in energy-saving technologies, and reduce emissions.

“After 15 years of implementation, limitations have been reported, necessitating a review and amendments to the Law on Energy Efficiency and Conservation, as well as related laws, to effectively address newly arising social and industrial energy usage challenges,” Giang said.

Nguyen Thi Lam Giang, Head of the Ministry of Industry and Trade’s Energy Efficiency and Sustainable Development Department gives a speech at the conference

Following the provisions of the Law on Promulgation of Legal Documents, the Ministry of Industry and Trade has collaborated with relevant ministries and agencies to draft a proposal for amendments to the Law on Energy Efficiency and Conservation. The proposed amendments have been shared with conference attendees and are also publicly available for feedback on the Government’s e-portal and the Ministry of Industry and Trade’s website.

Key amendments in the draft law

Presenting the contents of the draft law on amendments to the Law on Energy Efficiency and Conservation, Hoang Viet Dung from the Ministry of Industry and Trade’s Energy Efficiency and Sustainable Development Department outlined four key policy areas of revision, including enhancing the effectiveness of state management in energy efficiency and conservation; regulating and developing energy consultation services, energy audits, and human resource training in the field of energy efficiency and conservation; introducing incentive policies and financial support mechanisms for energy efficiency and conservation initiatives; and facilitating market transition and managing energy efficiency of appliances and equipment.

Legal framework needed for ESCO activities

According to experts and relevant stakeholders, the current Law on Energy Efficiency and Conservation has yet to provide a legal framework for developing the energy-saving market through the implementation of energy performance contracts under the Energy Service Company (ESCO) model. Currently, ESCO activities lack a clear legal foundation, particularly regarding key aspects, such as ESCO company operations, methods for determining energy savings, contract dispute resolution, asset transfer (for state-owned enterprises), and eligible users of ESCO services, such as public administrative units using state budgets.

“Vietnam Electricity (EVN) proposes that the amended Law on Energy Efficiency and Conservation should include policy mechanisms to establish a legal framework that encourages ESCO companies, thereby accelerating the growth of the energy service market in Vietnam,” said Tran Viet Nguyen, Deputy Head of the Business Department at EVN.

Tran Viet Nguyen, Deputy Head of the Business Department at EVN gives a speech at the conference

At the conference, participants were updated on the latest policies and key provisions of the would-be-amended law. Experts shared practical experience and proposed solutions to enhance energy efficiency and ensure sustainable development.

The conference in Hanoi not only served as a forum for stakeholders to contribute feedback, but also represented an essential step in ensuring that the amendments and supplements to the law bring practical benefits, promote a green and sustainable economy, and optimize energy use in Vietnam.