Monday, November 3, 2014

13. DEVELOPMENT OF GREEN TECHNOLOGY IN THE XXI CENTURY THE FUTURE OF WORLD AND VIETNAM’S ECONOMY



Vo Minh Tap
Ph.D. Candidate, College of Social Sciences and Humanities,
Vietnam National University - Ho Chi Minh City

Proceedings of International Conference on Green Technology and Sustainable Development 2014 (GTSD'14), HCMC. (Phát triển công nghệ xanh trong thế kỉ XXI: Tương lai của nền kinh tế thế giới và Việt Nam).PROCEEDINGS OF GTSD'14 HAVE ISBN: 978-604-73-2817-8 (Vol. 1) and 978-604-73-2818-5 (Vol. 2) , Decision of HCMC-VNU Publishing House

ABSTRACT
This article will analyze and clarify the context of developing green technology; activities and solutions which are using to expand green technology around the world. From that, look into the actual situation about promoting green technology in Vietnam and solutions oriented to develop green technology in the near future. Clarification on the above problems of green technology which is considered a strategic priority economic of all countries, including Vietnam, also answering the question about future of world economy in XXI century.
Key words: green technology, economic, Vietnam and the World, development…


1. THE CONTEXT OF GREEN ECONOMY DEVELOPMENT

In the early XXI century, humanity faces many challenges, which are greatly impacts on many areas of social life, particularly in the economic field – the determiningfactor in national development. Many issues are set out in the new century. According to study recently, 80% of the energy demand worldwide particularly the fossil fuels (oil, gas, coal) are depleted in the next 60 to 100 years[1].
Energy needs of the world is increasing rapidly due to the demand for energy use and investment in developed and developing countries, mostly in the new consumption centers emerging as China, India, industrialization process in developing countries while there are still limiting alternative energy resource, rapid population growth, making the world oil demand growing rapidly[2]. On the other hand, resource contention issues and energy security in the world is also make the global energy problem more difficult to solve. In order to solving the problem, the solution was made to develop new, clean technologies.
Especially the issue of climate change with the reducing of CO2 emissions in recent years require increasingly urgent for the development of clean technology, green technology. The global economic crisis in 2008 was the explosion of contradictions mentioned above, it is not only a financial crisis, but also the energy, food crisis and the crisis of poor growth mode sustainability at the global level.
Global economic recession, energy shortages serious, climate change and its serious consequences to the economic life - human society... all factors that lead to the development of clean technology.
Development of green technology has become a urgent needs, as a priority strategy to cope with the crisis and after the economic crisis in many countries According to experts, green development strategy has become a turning point for the recovery of the global economy and also a new impetus to the promotion of global economic sustainable development. The United Nations also said that economic policy is clear development path required by the global economy in the future.
2. WHAT IS THE GREEN TECHNOLOGY?
In general, green technology is the activities aimed at two purposes: (1) reducing the toxicity of old technology, (2) creating new technology environmentally friendly and does not cause more harm to the environment. Green technology is the technology used primarily renewable energy, bio-energy, reducing consumption of gasoline, oil and reducing CO2 emissions.
The goal of green technology is geared towards the sustainable economic development. Green technology is considered important technological quality, not quantity, enhance valid for use not only enhance the value and money...
The fields of green technology platform are: clean energy and clean technology, energy efficiently, reducing the energy which cause environmental pollution, build housing with clean material, set transportation systems and infrastructure which are environmental friendly, sustainable agricultural development…
3. GREEN TECHNOLOGY  DEVELOPMENT IN THE WORLD: ACTION AND SOLUTIONS
In the context of the post-crisis global economy, leaders of countries around the world are trying to find a new growth impetus for the economy, in order to quickly overcome the economic downturn, conversion growth model and restructuring the economy. New energy field has been selected as the key to open up an outbreak period of new economy.
At international level, the 16 Conference of the Parties (COP 16) in 2010 in Cancun (Mexico) suggested an idea of “intergrating green growth in economic activities” to cope with climate changes and energy crisis. At the first Global Green Growth Forum–3GF in Copenhagen in Denmark (October 2011) with the main target is to encourage green growth through public and private mechanism among government and coporate sector and at the Summit Rio+20 in 2012 together make an agreement about green growth. All of 30 international speciality organizations directly under United Nation, which was the result of the combination of  UNEP with top countries in the global green wave such as Japan, China, Korea, EU, especially Germany and Nothern Europe countries, together release the message “The World Community should quickly shift to a global green economy to save the Earth and humanity”.
In America,  U.S. President Barack Obama regarded the new energy policy development is an vital means to revive the U.S. economy. He wanted to rely on the economic recovery by development of green energy sources. He said that any countries move first in the establishment of a clean energy economy will take control of the economy in the twenty-first century[3].
In Europe, energy consumtion and gas emission come from 3 main industries: 25% from industry, 30% from transportation and 30% form household electric devices and commercial[4]. Therefore, EU works as pioneers in developing green technology and green ecnomy. In 2013, EU deployed to build clean technology and green economy in all EU27, Germany is in the lead – the country builds the first strategy of green economy in the world. Germany also makes an effort to become industrialized power in the world using 100% renewable energy in 2050. In 2010, England is marked as the country with large development of green technology with from electric car to wind farm and solar energy plane. In England, households, which use green energy resources with small scale as installing solar panels instead of turbine, will receive up to 1.000 pounds per year for the electric energy created from those green energy resources. Wind farm with 8 lines of turbine with total up to 100 turbine create capacity around 300MW, which may supply enough electricity for around 200.000 households. In September 2010, 9 contries: Germany, France, Belgium, Netherland, Luxembourg, Denmark, Sweden, Ireland, and England begin to deploy the project “super electric grids” renewable energy. They will exploit “clean” energy around North Sea–North Atlantic Ocean like solar energy, wind energy and wave energy. Once this project is successful, it will be an important first step to continue to accomplish engage of Europe United (EU) which states that trying to use 20% renewable energy resource in 2020[5].
In Asia, Korea, Japan, China, ASEAN do as pioneers. China which has largest developing economy in the world has become a big player in the green technology revolution. China made an investment plan about 738 billion USD to develop clean energy from 2011 to 2020. At the end of 2007, China decided to take 774 million USD to invest in saving energy project, closing 2000 factories which directly harm the environment (August 2010). China made an argeement for the world to reduce gas emission around 40-45% in comparison with 2005, building Green Economic Zone. In 2010, China also invested 49 billion USD for green economy. At the same time, to have green development, China also carried out clean revolution, green revolution, high technology revolution,… In recycling and renewable energy, each year, China received 17 billion USD and created job for 10 million people[6]. Ms.Wu Changhua, Director of non–govermental evironmental organization in China states that: new energy is seen as a motivation of new growing cycle of the economy in the world. There is no doubt about it… Like the changes which information technology, outer space and nuclear bring to the world after the previous technology revolution, new energy will decides the future of the world[7]. In Korea, from 2008, Korea used 80% from economic stimulus package (around 38,1 billion USD) to use in shifting from brown to green economy. Nation strategy about “green growing, low carbon” of Korea define the proportion of renewable energy in total energy supported is 2,7% (2009), 3,78% (2013) and more than doubled up to 6,08% (2020); in 2010, Korea announced “Strategy of developing green industry”, financing is designed to use 81% for the aim shifting growing model, top of the world, being a head of EU (59%), China (38%). For example, using 10,5 billion USD investing in improving the river, 5,8 billion USD in using energy effectively, 1,8 billion USD in growing forest[8],… Korea also invested around 40 billion USD during 4 years (2008–2012) to develop industry and green technology with general spearhead industry. The government also builds “green transportation” system, including railway which releases low carbon and 3.000 km bicycle trails around four green river, as well as sets the medium term goal to decrease gas emission which cause greenhouse effect down to 30% before 2020[9]. From 2003, Japan enforced “Strategy of biomass energy” and built biomass city. In 2009, there were 208 cities and in 2010, there were 300 cities which win this title. In 2008, Japan made a plan of “Action plan for a low carbon society” like producing solar energy, taking the best position in the world with the aim of increase 10 times in 2020, 40 times in 2030, developing new car generation, implementing life style of reducing CO2, reducing using fossil fuels, and saving energy aim to decrease green house gas emissions, saving the economy and civil in case of rising the price of energy. Japan promoted to produce and use non–fossill fuel energy including renewable energy and nuclear energy. Because of the changes in situation of the world, region and domestic, Japan’economy has sluggished and recession would last long. Japan made “New growing strategy”, reconstructing the economy 2011–2020 with 7 fields and 21 national projects, among them, green changing and growing are the mosturgent with the aim of creating the demand around 50 billion Japanese yen and 1,4 million jobs through developing and publicing green technology to reduce green house emissions gas 25% in 2020. To implement effectively green growing, Japan made some solutions such as setting clear price for releasing carbon, strengthening using environmental taxs, developing renewable energy, abrogating subsidy for fossil fuels and taxs amount[10]
ASEAN gave out General Statement (July 2010) giving out growing model “lowing carbon – green growing” and promoting coporating energy with East Asia region, in there, taking most care of Clean Development Mechanism (CDM), developing millitary nuclear energy…to limit negative effects of climate changes. Nowaday, ASEAN countries are concentrating in investing and innovating energy technology to increase energy productivities. Applying technology of simultaneous producing energy (at the same time producing both electricity and heat from a raw material) which is applying effectively in Thailand, Indonesia, Malaysia,…
At Asia – Europe Meeting (ASEM) at Hanoi (Octorber 2011), many countries gave out ideas, green stable developing models; experiences of building institution, policy, legal corridor to promote green growing, and state that green growing is the solution helping the world overcome serious challenges of economic crisis, population explosion, exhaustion of natural resources, declining biodiversity, environmental pollution, and climate changes. The forum promoted, oriented the policy of Asia – Europe of green growing, ASEM promoted green growing model aiming to action to greening ASEAM to become nuclear for the process of greening the world economy.
At Asia – Pacific Economic Cooperation (APEC) closing at November 13, 2011, Hawaii, America, APEC leaders passed Honolulu announcement, in there, APEC defined solving regional environmental and economic challenges byshifting to green economy, low carbon, increasing energy security and creating new resources for economic growing and jobs. In 2012, APEC developed environmental catalogue (green products) and decided to decrease tax for those products in the end of 2015. APEC will remove non–tariff barriers including requirements of localization ratio with services and environmental products. To promote aims of green growing, APEC will implement some methods such as decreasing 45% energy intensity of APEC in 2035 in comparison with 2005, combining developing strategy about releasing low carbon with ecnonomic growing plan through Low Carbon City Form project[11].
According to SHBC estimates (as of early 2009), the investment for green development accounted for 14% of total the stimulus package globally, with a focus on: building house which use energy efficiency, alternative energy and renewable, transport energy saving, sustainable agricultural development, water use efficiency.
Besides investments from the stimulus package of the government, the country focus on using leverage measures, particularly carbon taxes and fees, including the USA, the EU... This will cause discharging emission more expensive and will increase the pressure on polluting industries, encourage investment and consumer cleaning products. For example, to encourage energy saving in transport, many countries are adopting fuel taxes (such as Poland, Sweden ...); tariff quota licenses and vehicles (such as the EU, Japan...). In addition, several countries are going to make land planning at urban and rural such as China, India, changed Environmental Law towards improving environmental standards, recycling regulations in some sectors, environmental labeling for agricultural products...
4. OBSTACLES IN GREEN TECHNOLOGY DEVELOPMENT
The implementation of green technology is not the immediate solution, but a long-term solution. The transition to green technology is very difficult, not simple . The transition to clean energy still must overcome many obstacles:
(1) In terms of infrastructure. Electric power supply network from 50 to 100 years old need to change to be able to use all the alternative fuels;
(2) Energy technology is a difficult problem, turn wind power into energy is technology was relatively complete but still has a lot to do with the different types of renewable energy such as solar, geothermal, bio-energy...;
(3) The cost to implement green technologies is very large, it requires a huge financing costs of countries. Implementing green technologies also touching forces are benefiting as oil companies, coal, cars, insurance... For example, one of the first factors that may hinder the intent of President Obama's green technology is the powerful influence of coal and oil groups;
5. VIETNAM WITH GREEN TECHNOLOGY AND POLICY IMPLICATIONS
            During more than 27 years of innovating, Vietnam’s economy reached a quite impressive grow rate, this also cause a large demand of energy. According to forecast, the grow of energy demand in Vietnam is 8,1 – 8,7% in (2001 – 2020). Then, energy demand in industry increases significantly: from 4,36 million tons TOE (3) (2000) up to 16,29 million tons TOE (2010); 23,74 million tons TOE (2015) and 33,12 million tons TOE (2020). Rate of using energy of Vietnam is twice as big as regional countries in Asia. To create 1.000 USD GDP, Vietnam use around 600 Kg TOE, 1,5 times higher comparising with Thailand and twice higher comparising with the average amount of the world. In 2010 – 2020 the energy demand of Vietnam will increase 3 times. Vietnam is facing with depending on importing energy[12].
            Scientists claim that Vietnam is one of countries which are most affected negatively by climate changes. Now, natural disaster – related damages each year take 1,5% GDP of Vietnam. In 2100, average temperature in Vietnam will increase around 2,30C,sea level increase around 0,74 m. According to estimation of Asian Development Bank (ADB), average damages of climate changes in 4 countries: Indonesia, Philippines, Thailand, and Vietnam may be 6,7% GDP in 2100, twice as big as the world’s rate. According to estimation of World Bank, Vietnam is one of 12 countries which are most affected negatively by increasing sea level because of climate changes, around 16% areas, 35% populations, and 35% GDP of this country may be damaged seriously if the sea level increase 5 m[13]. If Vietnam do not shift to develop clean technology, lowing CO2 technology, the risk from environmental pollution and climate changes will be unpredictable. Deploying using energy effectively and applying low carbon technology on large scale can stabilize CO2 of Vietnam untill 2030, reducing by half domestic environmental fees, strengthening energy security without negative effects to growing. In the present and future, Vietnam has a lot of advantages to develop green technologies and aim to stable development of economy. Vietnam is country locating in central of Southeast Asia with tropical monsoon climate with a lot of sunshine, wind, and rain, natural conditions are very appropriate to develop renewable energy with 2.500 MW biomass, small hydro electric power at 7.000 MW, wind electricity at 3.000 MW… However, the ability of exploiting those energy resources is low with around 150 MW biomass, 1.100 MW small hydro electric power, 55 MW windelectricity has been exploited[14]. According to World Bank (WB), potentiality of wind electricity of Vietnam is top of Sountheast Asia with total capacity estimated around 513.360 MW (10 times higher than electricity demand in 2020). Wind power is the most important source of electricity and will be develop up to 1.000 MW (2020) and 6.200 MW (2030). Electrical energy producing from wind power takes from 0,7% (2020) to 2,4% (2030). Next, other renewable energy such as heat power from solar energy (the most additional, active, cleanest, cheapest electric sources comparing to gas electricity, diesel, nuclear), photo– electric, tide, geothermy, biomass, biodiesel combining gas electricity, coal–fired power, hydro electric power[15]. However, according to estimated, Vietnam will need around 130 billion USD in 2010– 2030 to invest in energy industry, in there, 65,5% will be used for development of electricity. Besides, oil and gas are also one of the top priorities in Vietnam. To make that a reality, Vietnam needs to continue to attrack technology investigation, especially exploration and exploition technologies.
Model of economic development in Vietnam over time primarily developed in width, based on the exploitation of natural resources, raw materials and semi-processed. Therefore requires urgent to switch to the model developed in depth, using clean energy. Thus maintain economic growth, reduce climate change, strengthen energy security are posing an urgent need for green technology development in Vietnam. In addition, the potential of new and renewable energy in Vietnam is very large, so the diversification of energy supply in Vietnam is necessary and urgent.
As the above analysis of the role and significance of green technology is huge, not only at national level but also at the global level, which is focus on sustainable economic development in the future. The trend in green technology around the world opens up opportunities for Vietnam to go straight to proactively develop green technologies and the green economy, but also create lagging behind further if Vietnam don't seize opportunities.
For developing countries like Vietnam, the pursuit of a new economy, with innovation technology needs are becoming the major task. Therefore, development issues and sustainable green technology should become a strategic priority in Vietnam's economic development for next decade.
Economic Development Strategy - Social 2011-2020 of Vietnam has emphasized the importance of developing green technologies and the green economy: focus on the development of green economy, environmental friendly. Perform sustainable production and consumption, step by step development of clean energy and clean production[16]. At the Asean Ministers on Energy Meeting conference of South East Asia (AMEM 28) in Vietnam dated 27-7-2010, Prime Minister Nguyen Tan Dung emphasized further cooperation in ASEAN to promote power projects, oil and gas, energy efficiency, renewable energy, clean development mechanism. Deputy Prime Minister Hoang Trung Hai emphasized the exhibition opening remarks green technology Green Biz 2009 and conference on environmental solutions business of European green for Vietnam in Hanoi that day 17-9-2009, Vietnam government consistently advocated economic development - society must be associated with environmental protection, applaud and encourage the exchange of experiences, collaborative research, development and application of green technologies with foreign partners, including Europe, one of the most development technology center in the world.
In 2007, the Energy Development Strategy of Vietnam country until 2020 and vision to 2050 approved.  Law saving energy use in 2010... As such, revolution transition to clean energy demand asked Vietnam to make significant domestic policy and deploy institutional reforms. However, in policies, programs and strategies for energy in Vietnam has not mention about reduce using technology which is exhaust the carbon emissions, carbon charge, and the specific tasks in development sources of renewable energy.
In 2011, Vietnam deployed building Green growing strategy (2011–2030) and forecasting 2050. This strategy is the process of reconstruction the economy to go to use natural resources effectively, decrease release green house gas emissions through examining and applying modern technology; develop infrastructure system to increase economy effectiveness, cope with climate changes.
In order to make sustainable development of the energy industry, Vietnam needs to invest huge funds in the next few decades, Vietnam enterprises account for over 90% of Vietnam's economy is not ready to the energy saving and using new energy.
Because of these reason above, we offer some suggestions as follows:
Should concretize and realize the Law used to save energy in many different levels.
- Need to promulgate new laws such as the Law on clean energy.
- Must have pricing policy, charging carbon on confidence level, consistent with Vietnam, the region and the world in long term.
- There are specific policies for development and using energy sources that Vietnam has strength as source of new and renewable energy. The government encourages enterprises to participate effectively use.
- International cooperation on developing energy technology, clean technology and make the commitment to effective.
6. CONCLUSION
The development trend of green technology is a strategic priority for many countries in the world selected to respond to the crisis and after the economic crisis, it is considered the turning point for the recovery process of the global economy and a new impetus to the promotion of global economic sustainable development in the twenty-first century.
Vietnam needs to continue innovation economy and restructure national economy towards developing dynamic, efficient and sustainable, should enlist the development trend of green technology in the world, at the same time institutional innovation, consolidation and implementation of policies and guidelines for the development of green technology in order to overcome challenges to restructure the economy, putting the economy flourished in the decades to come.






REFERENCES

 [1] Communist Party of Vietnam, The draft of economic- social development strategy  2011 – 2020, Ha Noi, Vietnam, 24 October 2010a.
[2] Brack Obama, New energy policy of Brack Obama, Politique International Journal, No. 125, 2009.
[3] Changhua, Wu, New Energy: Key era of economic boom, Economic news, Vietnam News Agency, 15 September 2009.
[4] World Bank, Global Economic Prospects 2009, Forecast Update, Washington D.C, 2009.
[5] IMF, World Economic Outlook (WEO), Washington D.C, 2010.
[6] VietnamAcademy off Social Sciences, Economic Restructuring towards the model of green growth – International Exxperience and Implication for Vietnam, Publising Social Sciences, Hanoi, Vietnam, 2012.
[7] Vo Minh Tap (Co-author), Green growth in the Era of Globalisation, Publising Economics Ho Chi Minh City, Vietnam, 2013.
 [8] Vo Minh Tap (Co-author), Sustainable Energy Development, Publising Houese for Science and Technology, Hanoi, Vietnam, 2013.
[9] Werner Pascha, South Korea’s Economic policy response to the global Economic crisis – A Comparative perspective, Feiburg, 20-22 September 2010.
 [10] Sustainable Development with green technology, http://www.tienphong.vn/Kinh-Te/phat-trien-ben-vung-voi-cong-nghe-xanh-697346.tpo
 [11] Quang, Vu Nhat (2014), Solutions to ensure energy security for Asia, http://nangluongvietnam.vn/news/vn/an-ninh-nang-luong-va-moi-truong/giai-phap-dam-bao-an-ninh-nang-luong-cho-khu-vuc-chau-a.html, 23 April 2008.
[12] Binh, Pham Thi Thanh (2014), Growth Economic and Vietnam ‘s energy security issues, http://nangluongvietnam.vn/news/vn/an-ninh-nang-luong-va-moi-truong/tang-truong-kinh-te-va-van-de-an-ninh-nang-luong-cua-viet-nam.html, 27 March 2014.
[13] The Steering Committee for Climate Change Mitigation and Adaptation (Vietnam), http://occa.mard.gov.vn.
[15] Viet Nam Government Portal, Vietnam, http://www.chinhphu.vn   





[1] According to the figures from Environmental Work Group (EWG) locating in Germany, there are around 1.255 billion cans of underground energy, which are enough for people to use in the next 42 years. With the speed of exploitation today, within the next 30 years, the sources of underground paraffin oil will decrease significantly and will become exhausted within the next 50-60 years. Meanwhile, according to International Energy Agency (IEA), coal and natural gas reserves now remain around 909 billion tons and will become exhausted within the next 155 years. Online: http://www.tapchicongsan.org.vn, 4 April, 2008.
[2] Vo Minh Tap (Co-author), Sustainable Energy Development, Publising Houese for Science and Technology, Hanoi, 2013, p.55.

[3] Brack Obama, New energy policy of Brack Obama, Politique International Journal, No. 125, 2009.
[4] Online: Sustainable Development with green technology, http://www.tienphong.vn/Kinh-Te/phat-trien-ben-vung-voi-cong-nghe-xanh-697346.tpo
[6] Tap, Vo Minh (Co-author, 2013), Green growth in the Era of Globalisation, Publishing Economic, pp.70.
[7] Changhua, Wu, New Energy: Key era of economic boom, Economic news, Vietnam News Agency, 15 September 2009.
[8] Werner Pascha (2010), South Korea’s Economic policy response to the global Economic crisis – A Comparative perspective, Feiburg, 20-22 September 2010, pp.20.
[9] Tap, Vo Minh (Co-author, 2013), Green growth in the Era of Globalisation,...pp.70.

[10] Tap, Vo Minh (Co-author, 2013), Green growth in the Era of Globalisation, … pp.71.
[11] Available at: Viet Nam Government Portal, Vietnam, http://www.chinhphu.vn   
[12] Quang, Vu Nhat (2014), Solutions to ensure energy security for Asia, Available at: http://nangluongvietnam.vn/news/vn/an-ninh-nang-luong-va-moi-truong/giai-phap-dam-bao-an-ninh-nang-luong-cho-khu-vuc-chau-a.html, 23 April 2008.
[13] Available at: The Steering Committee for Climate Change Mitigation and Adaptation (Vietnam), http://occa.mard.gov.vn.
[14] According  of Mr.Nguyen Duc Cuong - Director, Centre for Renewable Energy and the Clean Development Mechanism, Institute of Energy Science, Ministry of Industry and Trade.
[15] Binh, Pham Thi Thanh (2014), Growth Economic and Vietnam ‘s energy security issues, Available at: http://nangluongvietnam.vn/news/vn/an-ninh-nang-luong-va-moi-truong/tang-truong-kinh-te-va-van-de-an-ninh-nang-luong-cua-viet-nam.html, 27 March 2014.

[16] Communist Party of Vietnam (2010a), The draft of economic- social development strategy  2011 – 2020, Ha Noi, Vietnam, 24 October 2010, pp.45.
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