Energy Transition Update: 15-22.6.2026
Energy Transition Update: 15-22.6.2026
---
Energy Transition Update: 15-22.6.2026 ---
FORECAST OF A VERY STRONG EL NIÑO IN 2026 RAISES RISKS OF HEATWAVES, DROUGHT AND WATER SHORTAGES IN VIETNAM
VnEconomy – 15 June 2026
Vietnam may face a very strong El Niño event from mid-2026 through early 2027, increasing the risk of prolonged heatwaves, drought, water shortages and saltwater intrusion across several regions. Forecasts suggest the event could be comparable to the severe 2015–2016 El Niño, which caused significant disruptions to agriculture, water supply and livelihoods. Lower rainfall and higher temperatures are expected to place additional pressure on reservoirs, irrigation systems and urban water supplies, particularly in the Central Coast, Central Highlands and Mekong Delta. The implications extend beyond agriculture, as reduced water availability could also affect hydropower generation and increase pressure on the national electricity system during periods of peak demand. The forecast highlights the growing economic and social costs associated with climate variability in Vietnam. It also underscores the importance of early planning, water conservation measures and climate-resilient infrastructure to reduce vulnerability to future extreme weather events.
VIETNAM, ANGOLA EYE CLOSER COOPERATION IN AGRICULTURAL EXTENSION SERVICES, TECHNOLOGY TRANSFER
VietnamPlus – 16 June 2026
Vietnam and Angola are seeking to deepen cooperation in agricultural extension services, technology transfer and human resource development as part of broader efforts to strengthen agricultural productivity and food security. Discussions focused on sharing Vietnam’s experience in agricultural extension, crop production, irrigation and value chain development, while supporting Angola’s efforts to modernise its agricultural sector. The cooperation builds on a growing South-South partnership between the two countries, including technical assistance projects, training programmes and knowledge exchange initiatives. The move reflects Vietnam’s increasing role in agricultural cooperation with developing countries, particularly in Africa, where its experience in agricultural transformation is being applied to support sustainable rural development and food production.
EU TIGHTENS CONDITIONS FOR SUSPENDING CARBON BORDER TAX ON IMPORTS
VnEconomy – 16 June 2026
The European Union is tightening the conditions for temporarily suspending its Carbon Border Adjustment Mechanism (CBAM), signalling a strong commitment to long-term carbon pricing. CBAM requires importers of emissions-intensive products such as steel, cement, aluminium and fertilisers to pay a carbon cost equivalent to that faced by producers within the EU. Under the proposed rules, a suspension would only be considered in exceptional circumstances, such as when the price of a covered product rises by more than 50 per cent for at least six consecutive months compared with its historical average. The move is intended to provide greater certainty for businesses investing in low-carbon technologies and cleaner production. For exporting countries such as Vietnam, it suggests that carbon-related trade requirements are becoming a permanent feature of global markets. As a result, businesses may face growing pressure to improve emissions reporting, reduce carbon intensity and comply with increasingly stringent environmental standards.
GREEN BUILDING TREND FLOURISHES IN HO CHI MINH CITY’S REAL ESTATE LANDSCAPE
VietnamPlus – 17 June 2026
Green buildings are becoming a more visible part of Ho Chi Minh City’s real estate market as sustainability moves higher on the agenda for businesses and investors. Demand for certified green office space is growing, particularly among multinational firms that need to meet environmental, social and governance (ESG) commitments and reduce their carbon footprint. These buildings typically incorporate energy-efficient systems, water-saving technologies and improved indoor environmental quality, helping to lower operating costs while creating healthier workplaces. Developers are also responding to changing market expectations, as tenants increasingly consider sustainability alongside location and rental costs when choosing office space. Industry forecasts suggest that green projects could account for around 31 per cent of the city’s real estate market by 2026. The trend highlights how ESG considerations are becoming embedded in investment decisions and shaping the future direction of urban development in Vietnam.
UK TO SUPPORT VIETNAM’S OFFSHORE WIND DEVELOPMENT
VietnamPlus – 17 June 2026
The United Kingdom has reaffirmed its support for Vietnam’s offshore wind ambitions through a new cooperation initiative focused on policy development, technical expertise and investment facilitation. The partnership comes as Vietnam seeks to accelerate the deployment of offshore wind projects under its revised Power Development Plan VIII and reduce reliance on fossil fuels over the long term. Support from the UK will include knowledge sharing on regulatory frameworks, project development and grid integration, areas that remain critical for scaling up the sector. Offshore wind is widely viewed as one of Vietnam’s most promising renewable energy resources given its extensive coastline and favourable wind conditions. By helping address technical and institutional barriers, the cooperation could strengthen investor confidence and contribute to the development of a domestic offshore wind industry. The initiative also reflects broader UK-Vietnam collaboration on clean energy and climate transition.
DEPUTY PM IDENTIFIES THREE MAJOR ENVIRONMENTAL ISSUES REQUIRING SPECIAL ATTENTION
VietnamPlus – 18 June 2026
Deputy Prime Minister Ho Quoc Dung has highlighted three pressing environmental challenges facing Vietnam: persistent pollution hotspots in industrial parks and industrial clusters, worsening air and water pollution in major cities, and shortcomings in waste management and wastewater treatment across river basins and rural areas. These issues continue to affect public health and environmental quality despite improvements in environmental governance in recent years.
The discussion comes as Vietnam prepares amendments to the Law on Environmental Protection. Beyond addressing existing pollution problems, the proposed reforms seek to promote the circular economy, strengthen extended producer responsibility (EPR) for recycling, establish a legal framework for the carbon market and better integrate environmental protection with water security, food security and climate resilience. The message is clear: environmental management is increasingly being treated not as a standalone policy area, but as a core component of Vietnam’s long-term development strategy.
Summarised by Phan Le and Hai Thanh Nguyen
In collaboration with the ANU Institute for Climate, Energy & Disaster Solutions