nguyen manh hai - draft green growth strategy as a leds and its implications for clean energy...

7/31/2019 Nguyen Manh Hai - Draft Green Growth Strategy as a LEDS and Its Implications for Clean Energy Development in Vietnam

1/11

Draft Green Growth Strategy as a LEDS

and its implications for clean energydevelopment in Vietnam

By Nguyen Manh Hai,

Central Institute for Economic Management (CIEM)

Hanoi, Vietnam

Asia Clean Energy Forum (ACEF)

4-8 June 2012

Manila, Philippines


2/11

Vietnamese Economy:: GDP growth by

sectors, 20062010

Source: CIEM (2010).


3/11

GDP structure by sectors, 2000-2010 (%)

Source: Adopted from Le X.B.(2011).


4/11

Why Green Growth Strategy for

Vietnam ?

Vietnam has reached relatively impressive socio-economicachievements over the last decades, however, there are signs ofslowing-down growths recently.

The economic development has become increasinglyunsustainable: Environmental pollution, loss of natural resourcesand their inefficient use, increasing energy demand vs. supplyconstraints.

Economic restructuring toward industrialisation andsustainability. This calls for a Green Growth Strategy (GGS) to bedeveloped in Vietnam.

GGS for the period 2011-2020 and vision to 2050: Up to now, 7thdraft of GGS. The Strategy is expected to be issued in June, 2012


5/11

Concept/definition of green growth in

Vietnams GGS

Green growth is the process of restructuring the economic

activities and infrastructure to obtain better results from investments

in natural, human and financial resources, while reducing

greenhouse gas emissions, exploiting and using less natural

resources, creating less waste and reducing the social inequality

- Green growth does not conflict to economic growth target.

- GGS is an integrated part of Agenda 21 program on sustainable

development of Vietnam.

- GGS is closely related to the National Strategy for Climate change

which was issued in December, 2011


6/11

Objectives of GGS: LEDSs contents

Overall objectives:

Green growth as a mean to achieve the low carboneconomy will become the dominant trend in sustainable

economic development which:

+ Requires mitigation of GHG emissions and

+ Increased capability to capture GHG

---gradually becoming essential indicators in socio-economic development.


7/11

Major targeted indicators

By 2020: i) GDP per capita at least doubled compared to2010; ii) Energy consumption per GDP unit reduced by 1-1.5%/year; GHG intensity per unit of GDP reduced by 10-15% compared to BAU scenario of 2010.

By 2030: i) Reaches upper-middle income economystatus; ii) Natural resources are sustainably used andprocessed intensively; iii) GHG emissions are reduced byat least 1.5-2% per year; iv) The environment is restored

and improved based on basic standards for cleaning andgreening

By 2050: Green energy and technologies are commonly

utilised.


8/11

Strategic tasks in GGS

A. Reduce GHG intensity of the economy (per unit ofGDP) while promoting the use of clean and renewableenergy

B. Greening existing production processes.

C. Greening lifestyle and promoting sustainableconsumption patterns

----- GGS is in fact largely served as a LEDS inVietnam. Clean energy development is supposed to beone of the main sollutions for achieving green growthobjectives.


9/11

Energy consumption per GDP unit of Vietnam is 1.5-1.7times higher than that of Thailand and Malaysia and about2 times higher than the world average. (low energy useeffciency, energy wasteful utilisation etc)

Energy consumption growth is about double that of

economic growth.

Increasingly dependent on imported energies (e.g. coalwould be imported by 2015).

Implementation of the Law on economical and efficientuse of energy (June, 2010)

Challenges ahead


10/11

Mobilising resources for GGS

A potential budget line for GGS: 2% of budgetexpenditure for 2020, of which 1% for improvement of

energy and renewable energy use efficiency.

Adequate central and local state budget for GGS. Inaddition, encourage investment from financialinstitutions and businesses.

Market-based mechanism and financial instruments willalso be encouraged: taxes, charges, concessional loansand other incentives.

Establish Green Growth Fund


11/11

Thank you very much

for your attention !

nguyen manh hai - draft green growth strategy as a leds and its implications for clean energy...

Documents