Using energy economically and efficiently: Expectations from the new legal corridor

"Dual" motivation promotes energy saving and efficiency

At the recent Conference on “Disseminating legal policies on energy saving and efficiency, responding to climate change”, Deputy Director of the Legal Department ( Ministry of Industry and Trade ) Pham Thanh Trung said that climate change is having a profound impact on all aspects of life. Vietnam’s commitment to the goal of achieving net zero emissions by 2050 has raised urgent requirements for a fair and sustainable energy transition.

In recent years, many energy-saving models have spread positively, from green buildings, public lighting to community movements. However, challenges remain: high investment costs, lack of appropriate financial models, unsynchronized energy management and, in particular, uneven social awareness. In light of this reality, the National Assembly 's passing of the Law amending and supplementing a number of articles of the Law on Economical and Efficient Use of Energy in June 2025 is a breakthrough.

Mr. Truong Minh Tu, Department of Legal Affairs, Ministry of Industry and Trade, said that the scope of this amendment includes 19 articles and 1 additional article, focusing on the following groups of issues: improving the effectiveness of state management; developing consulting services, energy auditing; human resource training; establishing incentive tools, financial support; managing equipment performance; promoting technological innovation and digital transformation. A notable point is the establishment of a Fund to promote the use of energy economically and efficiently, along with regulations to encourage technological innovation and digital transformation in energy management.

Early establishment of a Fund to promote energy saving; development of tax incentives and financial support policies. Photo: An Ha

The Law amending and supplementing a number of articles of the Law on Economical and Efficient Use of Energy will take effect from January 1, 2026. According to Dr. Nguyen Thang Long, Vietnam Association for Science and Technology on Economical and Efficient Use of Energy, the Law will create a dual driving force: both improving the effectiveness of state management and expanding access to green finance for businesses through the Fund for Promoting Economical and Efficient Use of Energy. At the same time, it will encourage technological innovation and enhance decentralization and reform of administrative procedures. These positive impacts not only contribute to improving energy efficiency in the whole society but also help Vietnam move closer to the goal of green, sustainable development and fulfill its commitment to reduce greenhouse gas emissions.

Mr. Hoa Thai Thanh, Energy Auditor, VETS Company, said that the Law will create a legal corridor for the energy service model (ESCO), which is highly appreciated by the world. This will be the foundation to improve the market and promote energy saving investment activities.

Comprehensive solutions from legal to finance and technology

Mr. Hoa Thai Thanh proposed that it is necessary to quickly issue documents guiding the implementation of the Law, shifting from "encouragement" to "mandatory sanctions" for key energy-using facilities. At the same time, tax incentives, financial support, and regulations on ESCO must be specified.

From a management perspective, Mr. Pham Thanh Trung said that for the policy to be effective, it needs to be synchronized with green growth strategies and climate change response. Key enterprises must have feasible savings plans, replace outdated equipment according to a clear roadmap, and apply management systems according to international standards.

A series of solutions were highlighted: standardizing energy audits; promoting digital transformation in load management; building a shared database; raising energy efficiency standards; encouraging technological innovation and mobilizing green capital. In particular, it is necessary to link energy saving activities with the carbon market, requiring businesses to inventory emissions and choose cost-optimal solutions.

Along with the legal framework, training and communication also play an important role. Capacity building for managers and auditors, as well as spreading awareness to the community will help policies not only stay in writing but also enter into life.

The Ministry of Industry and Trade affirmed that it will continue to accompany businesses and localities through detailed guidance, support for digital transformation and mobilization of green financial resources. This is considered the foundation for Vietnam to achieve the goal of reducing greenhouse gas emissions, moving towards sustainable development.

Source: https://daibieunhandan.vn/su-dung-nang-luong-tiet-kiem-va-hieu-qua-ky-vong-tu-hanh-lang-phap-ly-moi-10388225.html