The socio-economic dimension of the energy transition
Keywords: Socio-economic effects, energy transition, renewable energy, greenhouse gas emissions, green hydrogen strategy, fossil fuels | Study published: March 2022
In the previous decades, climate protection measures have frequently been discussed in terms of “burden sharing”. In the last 10 years, the narrative and perspective has shifted. The opportunities and benefits related to the energy transition are now in the focus. The energy transition toward clean and renewable energy sources entails much more than just the reduction of greenhouse gas emissions. It is important for countries embarking on the energy transition to understand the potential socioeconomic effects of energy transition to be able to harness its benefits and prepare for the transition in fossil fuel dominated regions and industries. This study aims to provide an overview of such potential and suggest some recommendations for Vietnamese policymakers.
Well-structured policies can enable energy transition to trigger a large amount of socio-economic benefits for Vietnam, including increased energy security, improved trade balance due to reduced energy imports, job creation, reduced air pollution and related health costs, increased investment and GDP, and others.
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To harness these benefits, different policies and enabling frameworks need to be coordinated (e.g., energy policy, industry policy, labor policy, etc.) as part of an overarching green growth strategy.
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Policymakers need to anticipate potential negative socio-economic impacts on certain industries or in specific regions where the dependence on fossil fuels and fossil fuel-related jobs is greatest.
