2.7 WORKSHOP ON PARTNER COUNTRY PERSPECTIVES FOR TRACKING DOMESTIC AND INTERNATIONAL CLIMATE- AND...
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Transcript of 2.7 WORKSHOP ON PARTNER COUNTRY PERSPECTIVES FOR TRACKING DOMESTIC AND INTERNATIONAL CLIMATE- AND...
VIETNAM MINISTRY OF PLANNING AND INVESTMENT
Paris, 19 May, 2015
Tracking international climate-related finance in Vietnam
Ma. Nguyen Thi Dieu Trinh, Senior Official Department of Science, Education, Natural Resources and
Environment, Vietnam Ministry of Planning and Investment
Outline:
•Background: VGGS and GGAP
•Demand for Climate Finance
•Efforts in tracking resources for CC and GG •Recommendations
INVESTMENT NEEDS FOR CLIMAGE CHANGE
•Over the past decade, climate related disasters (particularly storms and floods) have caused an annual average cost in damages of 2-6 percent of GDP. •Viet Nam’s rate of emissions growth currently outstrips that of its GDP growth and committed to reduce the emissions.
Vietnam Green Growth Strategy
• Green Growth Strategy in Viet Nam: A strategy to promote the process of restructuring and improving economic institutions towards more efficient use of natural resources, improved competitiveness of the economy which will be achieved through increased investments in technological innovation, natural capital and economic instruments. This will contribute to respond to climate change, reducing poverty and ensuring sustainable economic development.
Vietnam Green Growth Strategy
• Strategic Task 1 of Low Carbon Growth: by 2020 to reduce voluntarily the intensity of greenhouse gas emissions by 8-10% as compared to the 2010 level and 20% with additional international support;
• Strategic Task 2: Greening Production with the aim to encourage the development of green industry and green agriculture based on environmentally friendly structures, technologies and equipment;
• Strategic 3: the Greening of Lifestyles and promoting sustainable consumption.
VGGS Action Plan
Total: 12 task groups with 66 activities dealing with several aspects:
- Institutional arrangements - Revision of Master plans - Technological transfer - Business promotion of enterprise development - Financial arrangements
DEMAND FOR GREEN/CLIMATE FINANCE
Sub-sector No. of options
Total capital cost (mil.
US$)
Total annual CO2 emission
saved (MtCO2)
Average MAC (US$/ton
CO2)
Building 3 3.33 0.17 -69.46
Construction materials 1 17.54 0.49 -14.39
Cement 3 725.00 2.61 -45.27 Textile 2 0.00 0.08 -60.28 Household 10 2,279.19 16.54 -32.32 Pulp and paper 2 0.00 0.19 -93.46
Electricity Generation 10 27,625.00 61.37 16.11
Iron and steel 3 79.50 0.22 -44.60
Road transportation 1 0.00 3.45 0.00
Total 35 30,729.56 85.12
List of GHG emission options and the result of MACC, 2020 (discount rate = 12%)
Situation of climate finance
Efforts in tracking Climate Finance Conduct a Climate Public Expenditure and Institutional
Review to assess current climate costs and development investment guidelines
Develop the Vietnam version of the Climate Option Framework to increase access to climate change.
Do mapping exercises Rio markers pilot at some provinces MPI lead national efforts to mobilized
Green Growth and Climate Financing. development partner input.
10
Data Analysis (Different Sources)
Gaps!!!
Categorizing Projects
/Programs
Overview of mapping exercise
11
Key information
152 on-going projects/programs in line with 21 ACTIONS in the VGGAP
26 on-going projects/programs contributing to 5 PRIORITIZED ACTIONS out of 23 in the VGGAP
45 ACTIONS remained blank 57 projects/programs on of 152 are
not directly in line with VGGAP ACTIONS (Code Z)
Climate Public Expenditure & Investment Review:
Objectives: 1. Review the state of spending on climate change / green growth (CC / GG) under the
national budget, including alignment with Government priorities and policies such as Green Growth Strategy, National Action Plan on Climate Change.
2. Assess options for tracking climate change / green growth expenditures (direct and indirect) in the budget against existing national policy frameworks, and in reference to international standard typologies.
3. Develop analytical framework to assess trends in climate change / green growth expenditure through selected channels and over a selected period.
4. Address institutional gaps at national and local levels and recommend steps to integrate climate change / green growth objectives in government planning, budgeting, monitoring and review processes.
5. Strengthen climate finance architecture to help improve existing capacity, systems, and
fiduciary procedures to: a) improve access to sources of international climate finance, b) strengthen harmonization of policies, and targets, c) scale up impact on the ground of climate change mitigation and adaptation programming.
SOURCES OF CLIMATE FINANCE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MARD MOC MOIT MONRE MOT NTPEE NTPRCC
ODA Domestic
Of the total, domestic sources accounted for 64%
ODA & CLIMATE FINANCE
21-May
-2015
CLIMATE FINANCE NEEDS TO BE LINK TO POLICY
Technical Services
Government
To be def ined
Government agencies, private sector, academia and indigenous groups
Umbrella fundSteering
committee (SC)reviews and
approves projects
SecretariatForwards project
concept notes forreview & approval to SC
Benef iciaries/implementing ent it ies
Private sectorPublic sector
Communit ies and States
Disbursefundingaf ter approvalof SC
Let ter of approval
Submitconcept notes
Tax incent ives
Loan, Grant funding,
guarantees
Technicalassistance
Technical committeefor dif ferent windows:
Incent ives/f inancial
mechanism
RE/RE Adaptat ion Conservat ionTrustee (TBD)
Ensures transparencyand accountability,
releases funding
Capitalisation (hybrid)Nat ional: Polluter-pay principle
Voluntary carbon cert if icatesPayment for ecosystem services
Internat ional: bilateral, mult ilateral
16
Thank you for attention!