Implementation of Capacity Development for CDM Project in Viet Nam

Nguyen Khac HieuClimate Change Coordinator

Vietnam National Office for Climate Change & Ozone ProtectionMinistry of Natural Resources and Environment

Contents Current StatusPreparation for CDM implementation Capacity Development for CDM Work Plan to carry out the CD4CDM

Project Conclusion

Current StatusADVANTAGES

Vietnam signed Kyoto Protocol (PK) on 03 December 1998 and ratified it on 25 September 2002.

Article 12 of KP to UNFCCC created CDM to assist developing countries like Viet Nam in achieving sustainable development and in contributing to the ultimate objective of UNFCCC.

Implementation of CDM by means of developing and carrying out CDM projects will play an important role in sustainable socio-economic development in Viet Nam

Current StatusMinistry of Natural Resources and Environment (MONRE) is assigned by the Government as a National Authority for implementing UNFCCC and KP as well as a CDM National Focal Point Agency.Under UNEP Project: “Capacity Development for CDM”, National Office for Climate Change & Ozone Protection (NOCCOP) – Country Executing Agency of the project - belongs to MONRE.Final Work Plan to carry out the UNEP project has been completed since March 2003. The plan is being

submitted to the Government for approval.

Current Status•Viet Nam carried out a National Strategy Study on CDM project (NSS) supported by the Government of Australia through World Bank (WB).•National Steering Committee and Study Team of NSS have been established.•Country GHG emission reduction potential and costs are assessed. • CDM potential projects are identified and developed.•Outcomes of NSS will be fruitful for implementation the UNEP Project in Viet Nam.

Current StatusDISADVANTAGES• Policy makers and business circle: Low awareness about CDM.•Lack of manpower.• Development strategies, policies, plans of sectors are available but the CDM was not taken into consideration•Legal framework for CDM activities need improving.• National Steering Committee established under NSS project need reorganizing and strengthening to meet CDM requirements.

Preparation for CDM implementationEvaluate of Vietnam’s supply potential

Based on National GHG Emission Projection in the period of 2000-2020. Bottom-up approach: Development and assessment of GHG mitigation options focusing on energy and land use change & forestry sectors.

Research CDM market opportunities for Vietnam Building up the MACs curves of Vietnam based on results of GHG abatement potential Using data of GHG abatement potential for evaluation The GHG market size of Vietnam is rather small. It is accounted for 0.75% of Non-Annex I export revenue.

How to realize CDM Opportunity ?

Three issues need considering: Criteria for CDM projects:

Sustainability Additionality Feasibility

Approval process (Viet Nam CDM project cycle). Domestic prerequisites.

Capacity Development for CDM

•The Project “Capacity Development for CDM” launched by UNEP with the support of Dutch Government.• Main objectives:

–To improve understanding on CDM –To create a better management of CDM activities.

• Project period: 2002-2005 with two phases

Capacity Development for CDM

Phase 1 (Project preparation) :• Review issues regarding the KP & CDM regulatory framework on institutional set-up.• Identify initially capacity building needs for CDM in the country.• Gather and prepare related documents to raise public awareness on UNFCCC, KP and CDM.• Translate CDM Booklet of UNEP into Vietnamese. Publish this Booklet with 1500 volumes to use for raising public awareness on CDM in the country.

Capacity Development for CDM• Establish a Project Core Team including key persons and senior experts to prepare a multi-year work plan.• Organize and conduct a 2-day National Workshop on Capacity Development for CDM (Hanoi,27-28 Nov 2002).• Develop and finalize a Draft Work Plan for CDM Capacity Development in the period of 2003-2005. • Take part in the Regional Workshop on Capacity Development for CDM. (Thailand, 16-18 Jan 2003).

Capacity Development for CDMPhase 2 (Project Implementation) :

Work Plan for CDM Capacity Development (CD) in 2003-2005 is completed. Six specific tasks for this period are identified:

–Task 1: Public information for raising CDM awareness–Task 2: CD on CDM for policy makers–Task 3: Establishment and CD for CDM National

Authority (CNA)–Task 4: CD for stakeholders relevant to CDM projects–Task 5: CD on CDM research and education–Task 6: Creating a pipeline of CDM eligible projects

Organization Chart for Implementing

Project on CDM Capacity Development

MONRE

UNEP Steering Committee

Project Coordinator

Task 1 Leader

Secretariat

International Experts

National Technical Experts

Task 2 Leader

Regional Centre (AIT)

Conclusion• Prior activities in the country for phase 2:

Carrying out in-country necessary procedure to establish National offices for CDM :

CDM National Authority (CNA) National Executive Board

Stepping up activities regarding CDM Capacity Development for policy makers in order to obtain their supports for CDM activities and investments in the country

Conclusion• In order to obtain the maximum possible benefit from participation in the CDM:

Reforming existing structure to involve relevant ministries in CDM management.Integrating CDM issues into development strategies, policies, plans of main sectors. Setting up legal basic for CDM activities.Developing criteria for CDM project assessment in a view of SDFormulating rule and regulation agreement with related project partners.

Conclusion

• The UNEP Project: “Capacity Development for CDM” will contribute an important part in facilitating CDM activities and CDM implementation in Viet Nam.

Thank you for your attention

National Office for Climate Change & Ozone Protection

Ministry of Natural Resources & Environment