Case #1: The Development and Financing of a Green Growth Action Plan: Thanh Hoa Province, Vietnam

Presented by:

Mr. Le Ngoc Hop – Vice Chairman of Thanh Hoa Department of Planning and Investment, Hanoi, 28, June 2016

THANH HOA

PROVINCIAL

PEOPLE’S

COMMITTEE

Overview of Thanh Hoa Province, Vietnam

Why Green Growth in Thanh Hoa?

Green Growth Action Plan (GGAP) development process

Objective and target

Key elements of the Green Growth Action Plan - what makes Thanh Hoa’s plan unique?

Priority areas and key projects

Financial strategies for implementation

Lession learned on preparation and implementation

Presentation Overview

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Area: 11,130 km2; ranks 5th nationwide

Population: 3.513 million; ranks 3rd nationwide

Administrative units: 27 administrative units; including 24 districts, 2 towns and 1 city; 637 wards (biggest nationwide, Ha Noi: 576, Nghe An: 480)

THANH HÓA

Overview of Thanh Hoa Province

Thanh Hoa locates in the North Central region, which is the large province in term of area, population and administrative units:

Thanh Hoa is the province of traditional culture and history

- 1535 cultural and historical relics ( ranks 4th nationwide), national relics, Citadel of the Ho Dynasty - World Cultural Heritage

- The birth-place of many feudal dynasties in Vietnam with Three Kings and two Lords

Citadel of the Ho Dynasty (XIV Century)

UNESCO World Cultural Heritage

Lam Kinh historical relics

(XV Century) Special National Relics

Con Moong Cave – Viet ancient traces from

7,000 - 13,000 years

Dong Son Bronze Drum –metalware

period ( 2,000 years ago)

Overview of Thanh Hoa Province

Thanh Hoa has big potentials and advantages

- Road traffic System: Roads, railways, seaport system, air systems: Tho Xuan Airport

- 04 Industrial Zones: Le Mon IZ, Bim Son IZ, Tay Bac Ga IZ, Hoang Long: 1,119.61 ha; 01 Economic Zone: Nghi Son EZ 106,000 ha; 01 Hi- tech Zone Lam Son- Sao Vang: 1,000 ha

- Thanh Hoa has many 1st ranked products: Cement: 11 million tons/year, ranks 1st nationwide; Sugar cane: 14,000 tons of raw materials/day; Thermoelectricity, hydroelectricity: 3,200 million kWh; Foods: 1.7 million ton; Luong Bamboo: 71,375 ha

Overview of Thanh Hoa Province

Challenges and Current Context

– Unsustainable economic growth and inefficient utilization of resources

– Limited application of science and technology

– Impacts of climate change in mountainous/forested and coastal regions and increasing levels of environmental pollution

– International economic integration requires economies to shift their growth model

– Vietnam COP 21 climate change commitments to reduce GHG emissions

Thanh Hoa’s vision is to modify its growth model towards a greener, lower carbon, and more environmentally friendly pathway

Why Green Growth in Thanh Hoa?

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Aims to achieve three main goals:

Greener lifestyles

Cleaner production

Reduced GHG emissions

Driven by a participatory process

Technical assistance by USAID.

It included gender-sensitive representatives

Selection of priorities was supported by training in policy analysis tools such as use of Marginal Abatement Cost Curves (MACCs)

GGAP Development Process

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Participatory process that included four steps: 1. Establishment of the Green Growth Task Force

developed vision, provided technical inputs, and outlined action plan

2. Inventory development and calculation of GHG emissions using various estimation tools

• Sectors addressed: energy, industry, agriculture, forestry and land use, and waste

• Period: 2010 - 2014

3. Development of an emissions baseline and targets

• Baseline: Period 2015 - 2030

4. Selection of priority intervention actions

• Target to reduce GHG by 14% by 2020 and 23% by 2030

Green Growth Development Process

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Objectives and target

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Emissions levels

2014 2030

Base line

GG target

GG scenario

An illustration of GHG Baseline and Grenn growth scenario

Objectives and target

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GHG Baseline and Green growth scenario

0

5000

10000

15000

20000

25000

30000

35000

2014 2020 2030

Em

issi

on level (1

.000 t

on C

O2-e

q)

Baseline

GG Senario

Year 2014 2020 2030

Baseline 16,109 22,353 30,364

GG Senario 16,109 19,263 23,475

Key Elements of the Green Growth Plan

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Completion mechanism and capacity enhancement: 15 activities

Cleaner production: 45 activities

Green Lifestyle: 13 activities

Reduction of GHG emissions and using renewable energy: 56 activities

Priority projects for investment: 19 projects

Total capital needed: 62,000 billion VND (USD$2.7 billion) through 2030

What makes Thanh Hoa’s plan unique?

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Comprehensive GGAP that has specific objectives and targets for green production, green lifestyle and gender

– Green Lifestyles: maintain and improve quality of life in parallel to sustainable development, and ensure that air, water, and land pollution are reduced and public health is safeguarded

– Clean Production: increase efficiency in utilization of natural resources, as well as reduce pollution, protect health and endure sustainable development

– Gender: address issues of equity and women’s leadership and empowerment to ensure that benefits are shared

Participatory approach to plan development, including input from various sectors

Priority Areas and Key Projects

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Prioritized actions based on three main criteria:

– Potential and strategic advantages of province

– Financial resources of province

– Contribution to GHG reductions

Bim Son Cement Company

Priority Areas and Key Projects

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Institutional improvement and capacity enhancement: – Communications campaign on green growth

– Improve environmental standards of construction industry

Agriculture sector: – Organic rice production

– Encourage development of Luong bamboo sector

– Promote water saving technologies

Forestry sector: – Replant coastal forest area

Energy sector: – Solar power

– Energy efficient public lighting

Waste treatment sector – Domestic solid waste treatment through combustion technology

Financial strategies for implementation

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Thanh Hoa has identified resources for development of selected priority projects

Provincial budget support: – Mechanism and policies for waste disposal at urban and district levels

– Development of policies to support development of Luong bamboo sector

– Supporting policy for on-farm sugarcane irrigation systems

Local business support: – Strand-woven bamboo processing facility

development

– Bamboo Eco-park

Donors support: – Proposal development for energy-efficient lighting and solar power

generation

– Additional support to bamboo sector development

Financial strategies for implementation

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Additional external support still required for:

Technical support:

– Institutional improvement and capacity building

– Proposal development to meet investor/donor requirements

– Financial support to meet infrastructure development goals

Call for implementation of green growth projects:

– Direct investment into energy sector.

– Wood processing

– Industrial bamboo sector development.

– Infrastructure development to response climate change (road, dams, sea dike, replant coastal forest, etc.)

Lessons learned on preparation and implementation

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Identify exactly the position, potential, and advantages of the province for Green growth

Drastic direction of Thanh Hoa PPC.

Active participation of various departments

Technical support of international organizations is necessary

Priority areas must be consistent with the specific condition of the locality

The participation of private sector is important

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Le Ngoc Hop

Vice chairman of Thanh Hoa Department of Planning and Investment

Email: hopwb@yahoo.com

Telephone: 0978147999

Contact