Mainstreaming Climate Change and Public Expenditures for Climate Change

Nguyễn Tuấn AnhDeputy Director General

Department of Science, Education, Natural Resources and Environment Ministry of Planning and Investment

Legal documents and tools

• 5-Year Socio-economic Development Plan 2016-2020

• Draft Law on Planning (in pipeline)• Mekong Delta Development Plan with climate

change adaptation (WB – Department of Planning Management - MPI)

• Decision by MPI issuing tools for prioritizing adaptation of climate change in planning (APRT: in collaboration with WB)

• Classification of investments for climate change response (to be issued soon)

PUBLIC INVESTMENT AND EXPENDITURES FOR CLIMATE CHANGE

(2010-2015)

MPI, WB and UNDP, 2015, Financing Viet Nam’s Response to Climate Change: Smart investment for a sustainable future. Climate Public Expenditures and Investment Review (CPEIR), April 2015.

Total annual expenditures for CC mitigation and adaptation decreasing (2010-2015)

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

2010 2011 2012 2013 2014 2015

Adaptation

Adapt.&miti.

Mitigation

bill. VND

Annual expenditures for CC adaptation of different Ministries (2010-2015)

Annual expenditures for CC mitigation of different Ministries (2010-2015)

SHORTAGE OF INVETSMENT for CC Adaptation and Green Growth period 2016-2020 (billion USD)

CC Adaptation

(at 4% of GDP)

GG ($9 Bil.)

GG (NDC)

Total demand

MTIP2016-2020

Shortage

46,85 9 17,9 24

Scenario

155,85 31,85

Scenario

2 64,75 40.75

* 20% of investment for green growth will be used for the 5 key Ministries, at 17.3 billion USD;

** 5% of investment for green growth will be used for all the provinces, at 1.57 billion USD;

*** Major target programs: 5.2 billion USD

ODA for Green Growth

– ODA Fund for Green Growth:

• Over 10 billion USD has been pledged to support about 180 programs and projects to implement 36 priorities listed in Viet Nam’s Green Growth Strategy (VGGS);

• 30 priorities in VGGS haven’t received any ODA support.

– Support Program to Respond to Climate Change (SP-RCC):

The fundings from development partners are merged into the state budget and allocated for the formulation of policies within the framework of the SP-RCC, as well as prioritized projects within the National Target Program on Climate Change and Green Growth

– ODA Resource Mobilization Framework:

Support the planning and implementation of the Green Growth Strategy through technical assistance and direct or indirect financing in a suitable manner and time, based on the strengths of each development partner.

Climate Private Expenditures and Investment Review

(CPrEIR)

CPrEIR 2010-2015

Climate investment with participation of all

economic sectors in Viet Nam, including SOEs.

Investment overview of some selected sectors

(energy, industry, agriculture, transportation,

forestry) both in adaptation and mitigation.

Timeline: late 2016

No statistics on private investment, scattered data,

in various forms and sources, many locations...

- Total investment in renewable energy: ~ 8.5 billion

USD for period 2010-2015; approximately 1.7

billion USD/year;

- Private investment for climate change mainly in

mitigation.

International

experience:

• 60% (about 200

billion USD) of

global climate

investment comes

from private sector.

• Private sector is the

biggest contributor

of investment in

developed

countries.

CPEIR in economic sectorsCC

Activities

Economic

sector

Type of project Industry Studies/Implementation

Mitigation

Industries

Renewable energy

(RE)

Hydropower, biomass Power Engineering (PE)

Wind, solar energy,

biogas

Power Engineering and heating

Energy efficiency

(EE)

Cement Heat recovery from waste, change of

co-production technologyIron and steel

Sugar

Chemical Improving or renovating technology;

recovering biogas and waste

treatment; 3R, using energy efficient

equipment and technology.

Pulp and paper

Food, beverages and

apparel

Commerce and

Domestic

Construction,

domestic

Transportation EE, biofuels,

Modal conversion

Cargo transportation,

passenger

transportation

Ethanol, LPG, electric bikes

Agriculture Projects not

reducing and/or

improving carbon

capture and

storage

Rice farming,

livestock production

Composting agricultural waste to

make fertilizers, dry/wet irrigation

for systems of rice intensification

(SRI), biogas production from

livestock waste...

Forestry - Afforestation in non-forest areas

- Restoring forest in areas of degradation

Adaptation

NFV Year Objectives Current fund

availability

Managed

by

Strategic Fund

for Green

Growth

2014 Mobilise and allocate national and

international finance;

Goal: Expanding scale of assistance

for prioritized areas.

5.5 million EUR MPI

Environmental

Protection Fund

2014 Providing finance for environmental

protection, natural resources and

biodiversity

1,000 billion VND

(44.6 million

USD)

MONRE

Climate

Innovation

Center Viet Nam

2015 Supporting enterprises using clean

technologies in first 3 years after

establishment;

Improving accessibility to climate-

friendly products and services

4.18 million USD MOST

Green Credit

Trust Fund

(GCTF)

2007 Promoting investment of clean

technology SMEs.

5 million USD Viet Nam

National

Cleaner

Production

Center

(VNCPC)

FUNDING FOR CC AND GREEN GROWTH

CC, GREEN GROWTH AND PRIVATE SECTOR

• Obvious opportunities for private sector, especially in green growth (requiring about 70% of investment);

• Reformed legal framework to facilitate private investment in climate change and green growth (PPP, Taxes, Fees);

• List of climate change and green growth projects has been approved by formulation of Action Plan.

Thank you for your attention!

Department of Science, Education, Natural Resources and EnvironmentMinistry of Planning and Investment