REPORT Results of the Delegation's work in Denmark within the framework of the Vietnam-Denmark Energy Partnership Program 2020-2025 (DEPP3 Program)

REPORT
Results of the Delegation's work in Denmark within the framework of the Vietnam-Denmark Energy Partnership Program 2020-2025 (DEPP3 Program)

 
In accordance with Decision No. 2790/QD-BTP dated September 11, 2025, of the Minister of Justice on sending civil servants on overseas assignments, I, Nguyen Thuy Hang, Senior Specialist in the General Economic Law Department, Civil and Economic Law Division, participated in a working delegation to Denmark within the framework of the Vietnam-Denmark Energy Partnership Program 2020-2025 from September 29, 2025, to October 3, 2025 (excluding travel time) with the following results:
A. Basic Information about the Working Delegation
Time: From September 29, 2025, to October 3, 2025 (excluding travel time).
Composition: The delegation consisted of 10 members, including 5 from the Ministry of Industry and Trade, 1 from the Government Office, 1 from the Ministry of Justice, 1 from the Ministry of Finance, 1 from the Ministry of Construction, and 1 from the State Bank of Vietnam.
Program: During their time in Denmark, the delegation worked with the Danish Energy Agency, the European Commission's representative office in Denmark, the Danish Institute of Technology, Schneider Electric, the United Nations City (UN City) in Copenhagen, and Viegand Maagge.
B. Main Content
1. Overview of the Working Trip
The Law amending and supplementing a number of articles of the Law on Economical and Efficient Use of Energy was passed by the National Assembly on June 18, 2025. The Ministry of Industry and Trade is in the process of coordinating with relevant parties to implement the Law, developing a Decree detailing and guiding the implementation measures of the Law, and continuing to develop and finalize draft regulations under the Law. To support these activities, the Department of Innovation, Green Transformation and Industrial Promotion is organizing a working visit to exchange knowledge and experience with the Kingdom of Denmark from September 29th to October 3rd, 2025.
The visit aims to share experiences and enhance the capacity of Vietnamese stakeholders in the field of energy saving and efficiency, and low-carbon development in industry. This includes sharing information on mechanisms, policies, and legal systems related to energy saving and carbon emission reduction in Denmark, as well as experiences in implementing financial models and fund mechanisms in Denmark and Europe to support the promotion of energy saving and efficiency in industry. This will support Vietnamese stakeholders in the implementation of the Law amending and supplementing certain articles of the Law on Energy Saving and Efficiency, and in the development of a Decree detailing and guiding the implementation of the Law.
2. Denmark's Energy Saving and Carbon Emission Reduction Policies
In 2020, the Danish Government passed the Climate Act, setting a target of reducing greenhouse gas (GHG) emissions by 70% by 2030 compared to 1990 levels and achieving climate neutrality by 2050. This Act plays a crucial role in promoting the green transition in Denmark. To achieve the goals in the Climate Act, the Danish Government also set phased targets, including: achieving 100% of electricity supply from renewable energy sources by 2030 and at least 55% of total energy consumption from renewable energy sources. At the political level, the Danish government aims to achieve climate neutrality sooner, by 2045, and reduce emissions by 110% by 2050 compared to 1990 levels. Annually, the Danish government reviews and assesses progress toward achieving these goals and identifies measures to ensure they are met.
One of the new policies contributing most significantly to Denmark's 2030 climate goals is the green tax reform program for industry, implemented from 2025. The carbon tax is set to gradually increase from 2025 and be fully implemented by 2030, allowing businesses time to transition to new technologies and implement carbon emission reduction solutions. The carbon emission tax is differentiated by production type to minimize carbon leakage risks. The minimum tax rate for companies not participating in the European Emissions Trading Scheme (ETS) is 750 DKK by 2030 per ton of CO2. Companies already participating in the ETS will pay a lower carbon tax, proposed at 375 DKK, in addition to the ETS rate. Companies in the mineral production sector, etc. (e.g., cement), will pay an additional tax of approximately 125 DKK.
To support businesses in their green transition in sectors most affected by the carbon tax, the Danish government is implementing support programs totaling up to 5 billion DKK, which include operational support, investment support, technology transition, and incentives for the application of carbon capture and storage (CCS) technologies. To receive support for the green transition, businesses are required to conduct both energy audits and CO2 emission reduction audits to determine the potential for emission reductions when transitioning to alternative green solutions. These audits, including energy and greenhouse gas (GHG) emission audits, will be conducted by qualified and certified entities. The Danish Institute of Technology is the authorized certifying body and is currently implementing a new certification program for energy and climate audits in Denmark. The initial certification fee is approximately $2000 USD, and the annual maintenance fee for five years is $500 USD. Certification is renewed after five years at the same fee of $2000 USD. Currently, 25 entities in Denmark have been certified under this program.
Energy conservation and efficiency have been a priority in Denmark's energy policy since 1979. From 1979 to 1990, Denmark focused on saving thermal energy in buildings. Since 1990, Denmark has strived to reduce electricity consumption, primarily from coal-fired power plants. Today, Denmark focuses on reducing gas consumption and increasing electrification to reduce greenhouse gas emissions and ensure energy security. Key solutions and policies aimed at promoting energy conservation and efficiency in the industrial sector in Denmark include: voluntary agreements for key energy-consuming businesses, energy saving programs for utility systems, mandatory energy audits for large businesses, development of energy saving centers in small and medium-sized enterprises, awareness campaigns, programs supporting research, development and demonstration of energy-saving and carbon emission-reduction technologies, and energy tax policies.
 
The Voluntary Agreement for Promoting Energy Efficiency is a highly successful program implemented in Denmark since 1993 and managed by the Danish Energy Agency (DEA). To participate, businesses need to have ISO 50001 energy management system certification and meet additional DEA requirements regarding equipment procurement, system design, reporting, implementation of energy saving projects with a payback period of up to 5 years, conduct in-depth energy efficiency surveys in required areas or as directed by the DEA, and submit annual reports to the DEA on the progress of energy saving projects (completed and new projects), energy consumption levels, etc. The Voluntary Agreement is valid for 3 years. Businesses will receive tax or fee reductions upon participation. If a business fails to meet the requirements, it will have to repay the received subsidy.
Some findings and experiences from Denmark regarding the deployment and use of Energy saving and efficiency in industry through Voluntary Agreements includes: Most industries have significant energy saving potential of 30-40%. Energy efficiency needs to be continuously improved. Energy-efficient design should be applied at the start of a new project due to its large energy saving potential and cost-effective investment. Electrification is the preferred solution in most sectors.
The Energy Service Company (ESCO) model is not widely developed in Denmark. However, the ESCO model has been developed with a global network of units in many countries to enhance and support the achievement of ambitious national energy saving targets in their Nationally Determined Contributions (NDCs). According to experiences shared by the UNEP office in Copenhagen, the development of a public sector super-ESCO model originating from electricity companies needs careful consideration and should be oriented towards providing services to large projects, rather than small ones. The ESCO model and the minimum services it provides also need to be clearly defined.
Some models of energy efficiency and carbon emission reduction funds shared by Denmark include:
- The Danish Enterprise Fund: This fund started operating in 2020, with capital of 3.5 billion DKK (500 million USD) from the state budget, allocated over the period 2020-2030 to support carbon emission reduction and energy saving projects in the industrial sector. The fund finances 30% to 50% of project costs, with higher support for smaller companies. The funding amount is 1.6 US cents per kWh saved or 78 USD per ton of CO2 over the project's lifespan, whichever is higher. Projects eligible for funding must meet the criterion of having a payback period of over 2 years. After approval by the Danish Energy Agency, the project can be implemented. The fund aims to achieve a reduction of 300,000 tons of CO2 by 2030. To date, the fund has received 3,224 applications, approved 2,474 projects, and disbursed funding to 1,322 projects with a total funding of approximately 50 million USD.
- The State Fund for Carbon Emission Reduction and Efficient Energy Transition of Ukraine: The fund's funding comes from CO2 emission tax revenue, government revenue, and other legally mandated sources. Ukraine's carbon tax is among the lowest in Europe, at approximately 0.72-0.77 Euros per ton of CO2 equivalent. The fund supports projects by providing preferential financing for energy-saving and carbon emission reduction measures approved through Voluntary Agreements (VAS) and financial support in two parallel forms: interest rate subsidies on loans from partner banks (commercial banks with at least 50% state ownership), and direct loans at preferential interest rates from the Carbon Emission Reduction Fund. Eligible recipients include: businesses, local and municipal authorities, and energy service companies. As of February 28, 2025, the fund had financed 21 energy efficiency projects, with a total allocation of 212 million UAH (equivalent to 5,150,000 USD).
Through this working trip, the delegation exchanged, shared, and learned practical experiences in developing and implementing policies in the field of energy saving and efficiency, experiences in managing key energy-consuming enterprises, and ensuring the quality of energy audits. In particular, they learned about building and supporting the development of energy service companies (ESCOs) and establishing an energy saving fund to provide flexible and preferential financial solutions to promote energy saving and efficiency in Vietnam. The trip also helped members from various ministries and agencies update useful information on energy saving and efficiency activities in Europe and Denmark to support the process of developing and refining legal regulations on energy saving and efficiency in Vietnam.
The above is the result of the delegation's work in Denmark within the framework of the Vietnam-Denmark Energy Partnership Program for the period 2020-2025. I respectfully report this to the Minister and Deputy Ministers for their consideration and guidance./.