Energy Transition Update: 18.5 - 25.5.2026
Energy Transition Update: 18.5 - 25.5.2026
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Energy Transition Update: 18.5 - 25.5.2026 ---
HANOI PROPOSES DEADLINE FOR ALL TAXIS AND RIDE-HAILING CARS TO SWITCH TO GREEN ENERGY
VnEconomy – 18 May 2026
Hanoi has proposed a roadmap requiring all taxis and ride-hailing cars with fewer than eight seats to transition to clean or green energy vehicles by 2030 as part of broader efforts to reduce urban emissions and promote green transport. Under the proposal, all newly purchased or replacement vehicles in these categories would need to use clean energy from July 2026, while transport operators would be required to achieve a 50 per cent green vehicle share by 2028 and 100 per cent by 2030. The draft policy also includes plans to expand public charging infrastructure and provide financial support for charging station investment. The proposal reflects growing pressure to accelerate transport decarbonisation in major cities amid worsening air pollution and rising urban transport demand.
22 LOCALITIES IMPLEMENT LOW-EMISSION CROP PRODUCTION PLANS
VnEconomy – 18 May 2026
Twenty-two provinces and cities in Vietnam have issued action plans to implement low-emission crop production under the government’s 2025-2035 agricultural emissions reduction programme. The initiative focuses on developing low-emission farming techniques, establishing monitoring and verification systems for greenhouse gas emissions, and expanding pilot models for crops such as rice, maize, coffee and durian. Several provinces have already launched large-scale low-emission rice cultivation projects using water-saving techniques and emissions measurement technologies. The programme reflects broader efforts to align Vietnam’s agricultural sector with climate commitments and emerging carbon market requirements, while improving the sustainability and export competitiveness of agricultural products.
HANOI BREAKS GROUND ON 200-MILLION-USD WASTE-TO-ENERGY PLANT
VietnamPlus – 19 May 2026
Hanoi has begun construction of the Nui Thoong high-tech waste-to-energy plant in Xuan Mai commune with a total investment of more than USD 200 million. Designed to process 2,000 tonnes of waste per day and generate 45 MW of electricity, the facility will become the first large-scale waste-to-energy plant in southwestern Hanoi, where modern waste treatment infrastructure has remained limited. The project will apply advanced incineration and heat recovery technologies commonly used in Japan, South Korea and Europe, while recycling ash residues into construction materials. The development reflects Hanoi’s broader push to reduce reliance on landfill disposal, expand circular economy practices and strengthen urban environmental management amid rapidly rising waste volumes.
EU’S CBAM MECHANISM MARKS HISTORIC TURNING POINT IN GREEN TRADE
VnEconomy – 19 May 2026
The European Union’s Carbon Border Adjustment Mechanism (CBAM) is reshaping global trade by shifting competition beyond price and product quality toward carbon intensity and environmental performance. From 2026, importers of emissions-intensive products such as steel, cement, aluminium and fertilisers will face carbon-related financial obligations when entering the EU market. The mechanism is designed to prevent “carbon leakage” and reinforce the EU’s decarbonisation agenda, but it also introduces new pressures on exporting economies such as Vietnam. Businesses will increasingly need transparent greenhouse gas monitoring systems, stronger emissions reporting and lower-carbon production processes to maintain access to major export markets.
The impact extends beyond environmental compliance and may accelerate broader economic and institutional changes within Vietnam. CBAM is likely to strengthen pressure for renewable energy expansion, domestic carbon pricing and greener industrial policies as carbon transparency becomes embedded within global supply chains. However, the transition may be particularly challenging for small and medium-sized enterprises because low-carbon technologies often involve high investment costs and long adjustment periods. The broader shift suggests that carbon efficiency is increasingly becoming a core dimension of international competitiveness and industrial strategy.
LG ENERGY SOLUTION, HONDA EYE VIETNAM’S E-MOTORBIKE MARKET
VietnamPlus – 20 May 2026
LG Energy Solution, Honda and Hanoi authorities have agreed to develop a public battery-swapping network for electric motorbikes in the Vietnamese capital as part of broader efforts to accelerate green transport transition. The pilot project, scheduled to begin in the third quarter of 2026, will include around 50 battery-swapping stations and 500 electric motorbikes deployed across key areas of Hanoi. The cooperation also covers battery standardisation, safety management systems and the development of electric motorbike business platforms. The initiative reflects growing momentum in Vietnam’s electric two-wheeler market as authorities seek to reduce urban air pollution and gradually shift away from petrol-powered motorcycles, while positioning Hanoi as a major testing ground for green mobility infrastructure in Southeast Asia.
FOREST CARBON CREDITS MAY ONLY BE TRADED THROUGH EXCHANGE CONTRACTS
VnExpress – 25 May 2026
Vietnam plans to require forest carbon credits to be traded through officially recognised exchange contracts under proposed regulations aimed at strengthening transparency and oversight in the emerging carbon market. The draft framework would centralise transactions through organised trading platforms rather than allowing unrestricted direct sales, with the objective of improving monitoring, price management and legal accountability. The move reflects broader efforts to formalise Vietnam’s carbon market architecture as the country expands forest-based emissions reduction programmes and prepares for deeper integration into international carbon trading systems. At the same time, clearer trading rules may help improve investor confidence and create more stable conditions for the development of forest carbon projects.
Summarised by Phan Le and Hai Thanh Nguyen
In collaboration with the ANU Institute for Climate, Energy & Disaster Solutions