U.S. firm's Vietnam coal deal 'undermines' climate goal: report

Think tank warns emissions may increase under 'fossil fuel-centric' new owner

U.S. energy company AES holds a groundbreaking ceremony for the Mong Duong 2 power plant in Vietnam's Quang Ninh province. © Reuters

LIEN HOANG, Nikkei staff writer

April 13, 2024 14:29 JST

HO CHI MINH CITY -- A U.S. company's planned sale of its coal assets in Vietnam, a measure to help it hit its green targets, might end up allowing for more carbon emissions, new research suggests.

New York-listed AES plans to sell its 51% stake in northern Vietnam's Mong Duong 2 coal plant to Czech investor Sev.en as part of efforts to rid its portfolio of the fossil fuel by 2025.