Green Inclusive Growth Conference SEA

The phase-out of inefficient lamps towards Green Growth: Case study in Viet Nam

Siem Riep, 3/2014

Contents• 1. Lighting industry in Viet Nam• 2. Current Policy on sustainable development

and green growth in Viet Nam• 3. Introduction of Project “Phasing out

Incandescent Lamps through Lighting Market Transformation in Viet Nam”

Lighting Industry in Viet Nam

From 1998 to 2012, energy demand in Viet Nam increased with about 18% of average annual growth. Energy demand is expected to increase by 2.5 times in 2015, and 5 times in 2025, in comparison with the present level of energy consumption.

Lighting for various purposes and uses accounted for around 30-35% of total electricity consumption in Viet Nam.

The current stock of indoor lighting lamps is estimated at around 200 million, in which about 60 million are incandescent.

The total electric consumption for Lighting by sectors

Economics of CFLs compared to ILs

 Incandescent Lamp

(IL)Compact Fluorescent

Lamp (CFL)

Initial cost of bulb (US$) 0.50 10

Light output (lm) 900 900

Lamp power (W) 75 15

Efficacy (lm/W) 12 60

Lifespan of bulb (h) 10,000 10,000

Calculation over a 10,000 h operating period, assuming an electricity tariff of US$ 0.1/kilowatt-hour (kWh)

Electricity consumption (kWh) 750 150

Cost of electricity (US$) 75 15

Cost of lamps (US$) 5 10

Total cost of lamps and electricity (US$) 80 25

Total savings for CFL (US$)   55

Source: IEA (2006)

Current Policy on sustainable development and green growth in Viet Nam

- Recently, Viet Nam has adopted national polices and strategies on sustainable development and green growth

+ Viet Nam's sustainable development strategy for the period 2011-2020;

+ The National Green Growth Strategy for the period 2011-2020 with a vision to 2050

+ The National Action Plan for Green Growth for 2014-2020

- The Government has recognized the importance of energy saving in both combating with GHG emissions in one hand, and to reduce energy losses on the other and is considered as one of the fundamental policies of the Vietnamese Government towards green growth.

- Some policies on Energy conservation and efficient use has been issued.

GEF-UNEP-MONRE Lighting Project

- Project title: “Phasing out Incandescent Lamps through Lighting Market Transformation in Viet Nam”

( The Project has been developed under the umbrella of the GEF-supported Global Lighting Initiative)

- Executing Agency: UNEP in cooperation with the Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE)/ Ministry of Environment and Natural Resources.

- Duration: 48 months, from 2012 to 2015

The Project Objectives and Components

Expected ResultsThe Project creates new Opportunities for sustainable

development includes GG in Viet Nam

Economic aspect: Social aspectEnvironmental aspect

- Create a significant transformation of lighting Market in Vietnam from manufacture to consumption through replacing ILs with ESLs. - Promote the local lighting manufacturers to upgrade their production line to manufacture high quality ESLs.- The use of ESL products in households will contribute to the reduction of electricity consumption.

- Create to issue relevant regulations to force manufacturers to take responsibility for recycling and treating used CFLs, and users to take responsibility for separating hazardous waste from the mainstream.- Reduce the overall country electricity consumption hence reducing the corresponding GHG emissions due to fossil fuel electricity generation.

- Improve the living standards of the concerned population through the use of more energy efficiency lighting, reduction of mercury pollution, economic development, and creation of jobs

Engaging related stakeholders to reduce energy consumption in lighting

A broad range of stakeholders involved

-Government: Organizations: Business sector:

+ MONRE is partner with the UNEP and GEF in the implementation of the project; + MOIT: take the lead in the development of ESL enhancing policy and roadmap/plan for phasing out the Ils; + MOST: in capacity building with regard to QA/QC of ESLs: relevant standards will be improved; the upgrade of a national laboratory testing capacity.+ MOF: in the development of financial incentive policies + MOET: in awareness raising activities mainly through the education system.

+ Engaging Vietnam Lamps Producers in strengthening lighting industry capacity in Viet Nam through technical aid on conversion of IL production lines to ESLs.+ EVN: in awareness raising and communication activities

+ VLA: in market survey and some communication activities + Universities & research institutes: in providing comments and consultation during the project implementation via consultation workshops.

Some main results achieved

Some main results achieved (cont’)

Before After CFLs demonstration in Ha Tinh ProvinceCFLs demonstration for dragon fruit

plantation in Binh Thuan rovince

Thank you for listening!

For more information:

Project “Phasing out incandescent lamps through lighting

market Transformation in Viet Nam” Address: No. 479 Hoang Quoc Viet, Ha Noi, Viet Nam Tel: +84-4-37931629 Fax: +84-4-37901730

Email: ttmai@isponre.gov.vn