Toward Green Energy Saving Economy

A Distant Learning Seminar on Restructuring the Economy toward a Green Energy Saving Economy was hosted in Hanoi by the Institute of Financial Personnel Training under the Ministry of Finance of Vietnam in collaboration with the Asia - Pacific Finance and Development Centre (AFDC) and the World Bank (WB). The international videoconference drew a broad participation of Vietnamese, Chinese, Mongolian, Malaysian, Japanese and WB specialists. This topic is a concern of not only Vietnam.

 

Before the fact that global economies are facing numerous environmental problems like resource depletion, air pollution, climate change, global warming, many countries have decided to restructure their economies toward ‘green’ models. They regard the development of new energy sources and the construction of a ‘low-carbon’ industry as an important driving force to propel economic development. This idea has caught the broad attention of the international community.

 

According to the World Bank, using clean energies and renewable energies is the key to sustainable development and stability for each country. A shift into a more environment-friendly economy is not only the matter of ‘morality, conscience or consciousness’ but also a target that many economies aim for.

 

For Vietnam, restructuring the economy toward a green energy saving economy is no longer a story of an agency, organisation or business but a concern of the entire nation which is presented in political determinations, policy structure and legal framework for the realisation of that advocacy.

 

However, according to many specialists, economic growth is essential but it must be reached with reasonable steps and effects to make sure that the economy go green while economic growth is ensured and hurts no human and natural environment.

 

According to Dr Ede Ijjasz, Sector Manager of China and Mongolia Sustainable Development at the World Bank, administrative tools play very important role in governing a green economy. In addition, although fiscal policy is not the only tool for make the economy go green and save energy, this can be seen as one of useful tools to cope with climate change.

 

He said governments need to deeply understand that the energy sector is also an economic sector; thus, it must be governed by the market mechanism. To do so, countries need to complete two things at the same time: Creating demand for appropriate and effective use of clean energy and building a appropriate price unit list, with outside factors like petroleum prices taken into account. Dr Ijjasz also noted that excessive reliance on administrative measures while ignoring market factors may lead to risks of distortion in clean energy market.

 

In addition, according to the WB, policy issues are also major barriers to developing nations to redirect the economy. To successfully build a ‘low-carbon’ economy, according to Dr Ede Ijjzasz, a consistent reform in both the structure and the market of energy sector must be undertaken.

 

Professor Federico M. Macaranas at the Asian Institute of Management (AIM) said emerging economies in Asia still have a great opportunity to develop low-carbon economies. Importantly, policy makers need to take appropriate measures as soon as possible. “Although each economy has different conditions to reach the goal, the difference is not too large. Countries may share experiences and adapt to practical situations and general practices,” said Professor Federico M. Macaranas.