MOBILIZING  INVESTMENT  SOURCES  FOR  VIETNAM  NDC  IMPLEMENTATION  

Realizing  Vietnam  NDC    by  VGGS,  SDGs  and  SEDP,    with  focus  on  priority  investment  policy  and  finance  

Dr.  Pham  Hoang  Mai,  Director    General    Department  of  Science,  Education,  Natural  Resources  and  Environment    Ministry  of  Planning  and  Investment  of  Vietnam  29th    August  2017  |  Hanoi,  Vietnam  

REALIZING  VIETNAM  NDC  IMPLEMENTATION  BY    VGGS,  SDGs  and  SEDP  

07/09/17

Links  of  SDGs,  SEDP,  NDC,  VGGS  •  VSSD  (2004)  Vietnam  Strategic  Orienta4on  for  Sustainable  

development  with  19  priori4es  including  climate  change;  •  NCCS  (Dec’  2011):  04  objec4ves,  in  which  to  turn  low-­‐carbon  

economy  and  green  growth  into  main  orienta4ons  for  SD;      •  VGGS  (Sep’  2012):  03  objec4ves,  in  which  GHG  emission  

reduc4ons  achieved  based  on  greening  produc4on  and  life  style.  That  means  VGGS  and  its  ac4on  plan  close  to  implement  for  realizing  primary  target  of  GHG  reduc4on;    

•  SEDP  2016-­‐2020:  21  targets  for  03  SD  pillars  (Nov  2015);  •  NDC  ac4on  plan:  CC  adapta4on  and  mi4ga4on  with  05  

implementa4on  components  (Oct’  2016)  with  revised  target  of  GHG  emission  reduc4on  and  ac4vi4es;  

•  VSDGs:  17  goals  and  115  specific  targets  03  SD  pillars:  Economic,  Social  and  Environmental  (May  2017);  

07/09/17

2004 - 2017

Mutual  benefits  between  NDC  and  SDGs  

VSDG  with  115  specific  targets NDC SDG  1:    4  targets,  1.1  -­‐  1.4 4/4* SDG  2:    5  targets,  2.1  -­‐  2.5 4/5 SDG  3:    9  targets,  3.1  -­‐  3.9 8/9 SDG  4:    8  targets,  4.1  -­‐  4.8 8/8* SDG  5:    8  targets,  5.1  -­‐  5.8 5/8 SDG  6:    6  targets,  6.1  -­‐  6.6 6/6* SDG  7:    4  targets,  7.1  -­‐  7.4 4/4* SDG  8:    10  targets,  8.1  -­‐  8.10 7/10 SDG  9:    5  targets,  9.1  -­‐  9.5 5/5*

07/09/17

SDG  10:    6  targets,  10.1  -­‐  10.6 3/6 SDG  11:    10  targets,  11.1  -­‐  11.10 10/10* SDG  12:    9  targets,  12.1  -­‐  12.9 9/9* SDG  13:    3  targets,  13.1  -­‐  13.3 3/3* SDG  14:      6  targets,  14.1  -­‐  14.6 6/6* SDG  15:      8  targets,  15.1  -­‐  15.8 8/8* SDG  16:      9  targets,  16.1  -­‐  16.9 6/9 SDG  17:    5  targets,  17.1  -­‐  17.5 4/5 Total 100/115

Actions in VGGS and Action Plan relate to 65 specific goals (57%) of SDGs.

SDGs  #   Governance  

MiOgaOon   AdaptaOon  

Finance   MRV  

1   x   x   x  

2   x   x  

3   x   x  

4  

5   x   x   x  

6   x   x  

7   x   x  

8   x   x   x   x   x  

9   x   x   x  

10   x   x  

11   x   x   x   x   x  

12   x  

13   x   x   x   x   x  

14   x   x  

15   x   x  

16   SDGs  &  NDC’s  modules  

x  

17   x   x   x  

Mitigation provides wider co-benefits in relation to climate change adaption, development, employment, ennergy security and public health (SDG 2, 3, 5, 9, 13, 15). Further more, it is for affordable and clean energy (SDG7), sustainable cities and communities (SDG11) and responsible consumption and production (SDG12).

Source: Planning for NDC implementation | Quick Start Guide, CDKN&Ricardo 2016

Linkages  between  NDC  and  VGGS  #   Items   VGGS  (2012)   NDC  (2015)   Remark    

1   Objec4ves   Green  growth/Low  carbon  development  with  GHG  emission  reduc4on,  greening  produc4on  and  greening  lifestyle.  That  implies  more  on  economic  restructure  

Respond  to  climate  change  and  contribute  to  the  objec4ve  of  the  UNFCCC  by  mi4ga4on  and  adapta4on  ac4ons  

VGGS  covers    mi4ga4on  only  

2   Targets   First  4me,  VN  informs  its  quan4ta4ve  determina4on  to  reduce  GHG  emission  intensity    voluntarily  and  with  interna4onal  support  

Update  the  quan4ta4ve  determina4on  to  reduce  GHG  emission  intensity  voluntarily  and  with  interna4onal  support  

NDC  same  but  update  

3   Key    tasks   VGGS:  17  solu4ons    VGGAP:  66  ac4ons  

09  tasks  in  mi4ga4on  component  

Same  

4   M&E   Not  clearly  defined   Set  out  briefly  

07/09/17

The  contribuOon  of  Green  Growth  to  NDC  q The  point  of  view  of  the  NDC  Ac4on  Plan:  “inherit  the  point  of  

view  and  policies  of  exis4ng  and  implemented  green  growth  and  climate  change  adapta4on  ac4ons”;  

q  Implement  Green  growth  Strategy  and  Ac4on  Plan  focusing  on:  §  Greening  Economy  for  long  term  mi4ga4on;  §  GHG  emission  reduc4on;    §  Resource   mobiliza4on:   human   resource;   technology   and  finance;    

§  Measurement,  Repor4ng  and  Verifica4on  (MRV  System).    §  Ins4tu4onal   framework   and   policy:   develop   and   finalize  legal  documents  and  technical  guidance.

Approach  SDGs  through  the  implementaOon  of  VGGS    

GHG Emission Reduction

Greening

Production

Greening Lifestyle, Sustainable

Consumption

Awareness rising, promote public and organization involvement

Develop institutions and policies: Review and revise Strategy and Planning; Promote economic restructuring, revise growth models Technology innovation, restructuring enterprises

Mobilize and efficient use of financial and technological resources

Institutional development, leading and coordinating operation

03 VGGS tasks

Implementing GG Action Plan

VGGS Indicators

Public and Private investment programs and projects

Annual Plan, GG Action Plan at sectorial and provincial levels

Socio-Economic Strategy and Action Plan at national, sectorial and provincial levels

SD Goals: 6, 7, 8, 9, 11, 12 and 13, 14, 15, 17, and

other relevant targets

VSDG APPS Indicators

VGGS

1 Poverty headcount ratio at $1.25 a day (PPP2005) (% of population)

Partly

2 Prevalence of undernourishment (% of population)

Partly

3 Physician density (per 1,000 people) n/a

Healthy Life Expectancy (HALE) at birth (years)

Partly

4 Youth literacy rate (% of population 15-24 years)

Partly

5 n/a n/a

6 Annual freshwater withdrawals, total (% of internal renewable water)

Y

7

Access to electricity (% of total population)

Y

Renewable electricity (% in total electricity output)

Y

Primary energy intensity (MJ / $PPP2011)

Y

8

GDP per capita annual growth (%) Y

GDP per person employed ($PPP2011) Y

Employment-to-population ratio (%) Partly

9 Manufacturing value added (% of GDP) Y

Total energy and industry-related GHG emissions over sectoral value added (t of CO2e / $PPP2011)

Y

10 Palma ratio Partly

11

PM2.5 pollution, mean annual exposure (micrograms per cubic meter)

Y

CO2 intensity of residential and transport sectors (t of CO2 / t of oil equivalent energy use)

Y

12 Material productivity ($PPP2011/ kg) Y

13

Net GHG emissions from AFOLU sectors per m2 of forest and agricultural land (t of CO2e / sq. m)

Y

Compliance to Conditional INDCs* Y

Gap from equitable and sustainable GHG emissions per capita in 2030 (t CO2eq) **

Y

14 Marine protected areas (% of territorial waters) Y

15

Terrestrial protected areas (% of total land area) Y

Forest area (% of land area) Y

Endangered and vulnerable (animals and plants) species (% of total species)

n/a

16 Corruption Perception Index n/a

17 Central government gross debt (% of GDP) Partly

Research and Development (R&D) expenditure (% of GDP) Y

Total Yes: 18/27; Partly 6/27.

q  If using 27 Indicators for Assessment, Projection and Policies of SDGs (APPS covering 16 SDGs (All but SDG5 – Gender Equality), we find VGGS and its actions contrbute to 18/27 indicators. (see the above table)

q  Actions in VGGS and Action Plan relate to 65 specific goals (57%) of VSDGs.

Need  for  synergies  with  other  plans    Key  tasks  related  to  NDC  implementa4on  are  divided  into  05  modules:  governance,  mi4ga4on  and  adapta4on,  finance  and  MRV;    To  achieve  targets,  it  requires  to  determine  priority  ac4ons  and  finance;      • Sector  targets  –  mi4ga4on  and  adapta4on  • Determining  priority  ac4ons  with  good  synergis4c  effects  • Integra4ng  priori4es  into  plans  &  investment  pipelines    • Finance  mobiliza4on  • MRVs  

Red  -­‐  linkages  to  ongoing  MPI’s  work  on  green  growth    

Determining  priority  acOons  with  synergisOc  effects  

Measures considered

NDC NAP GGS & GGAP

SGD Action Plan

Agriculture XXXX X Intervention 1 XX XXX Intervention 2 XX XXX ….. X Urban dev. XXX X Intervention 1 XXX Intervention 2 XXX XX XX ….. X X

Mutual SD, CC &GG benefits, but we may use Simple tools – e.g.

Other  simple  approaches  to  determine  priority  acOons  through  detailed  

examinaOon  Proposed actions for adaptation and mitigation in ..

CC potential Costs Risks and benefits

Adapt. potential

Mitigation potential

Econ. risks & benefits

Soc. risks & benefits

Env. risks & benefits

Agriculture …..

Forestry …

Fisheries …

Urban development …

Transport ….

Energy …

Consideration of multiple benefits and costs

THE  ROLE  OF  MPI  IN  VIETNAM  NDC  IMPLEMENTATION  

07/09/17

The  role  of  MPI  •  Leading   agency   in   charge   of   (i)   advising   policy   and   resource  

mobiliza4on   for   the   development   of   socio-­‐economic   to   the  Government;   (ii)   implemen4ng   Na4onal   Green   growth  strategy  and  Climate  finance.    

•  The  MPI  is  projected  to  be  responsible  for:  q Leading  and  implemen4ng  the  tasks  number:  29,  54,  56,  57,  58,  59,  72,  73  và  77  at  Annex  I;    

q Collaborate   with   Ministry   of   Science   and   Technology   to  implement  the  tasks  number  51,  52;  

q Collaborate  with  Ministry  of  Home  Affairs  to  implement  the  task  number  78;    

q Collaborate  with  Ministry  of  Natural  resources  and  Environment  to  implement  the  tasks  number  3,  27,  38,  42,  48,  61,  76;    

q Collaborate  with  Ministry  of  Informa4on  and  Communica4on  to  implement  the  tasks  number  50.  

The  role  of  MPI  •  Leading   agency   in   charge   of   advising   the  Government   to   prepare   and   implement   the  Na4onal  green  growth  Strategy  and  Ac4on  Plan,  and   Climate   finance.   Under   assigned   tasks,   the  MPI  has  been  implemented  the  tasks  number  29,  54,  56  and  77;  

•  The   MPI   will   collaborate   with   ministries,   line  ministries   and   development   partners   for   the  effec4ve  implementa4on  of  this  Ac4on  plan.  

CLIMATE  FINANCE  IN  VIETNAM  

Forms  of  Climate  Change  Finance    1. Public:  •   Government  investment  for  Climate  Change  projects  and  programs  including  Green  Growth  (around  $1  billion  annually):  -­‐  Na4onal  Targeted  Programs  (NTP-­‐RCC,  Energy  Efficiency,  

Reforesta4on);      -­‐      Projects  and  programs  directly  link  to  Climate  Change  and  Green  Growth.  •   Current  expenditure    for  research,  capacity  building  projects  •   ODA:  from  1993  of  about  $11  billion  under  the  forms  of  CC  related  projects  &  programs  and  budget  support;  •   Others:  REDD+,  Vietnam  Environment  Protec4on  Fund,  CDM.  

2.  Non-­‐Public:  Private  Investment  under  the  forms  of  FDI,  Equity,  Local  Investment  etc.  

SOURCES  OF  CLIMATE  FINANCE  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

80%  

90%  

100%  

MARD   MOC   MOIT   MONRE   MOT   NTPEE   NTPRCC  

ODA   Domes4c  

Of the total, domestic sources accounted for 64%

ODA  &  CLIMATE  FINANCE    

07/09/17

 

Total  annual  expenditures  for  Climate  Change  AdaptaOon  and  MiOgaOon  (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  

Adapta4on  

Adapt.&mi4.  

Mi4ga4on  

bill.  VND  

Total  annual  expenditures  for  Climate  Change  AdaptaOon  by  Ministries(2010-­‐2015)  

Total  annual  expenditures  for  Climate  Change  MiOgaOon  (2010-­‐2015)  

IntegraOng  priority  acOons  into  planning  and  investment  pipelines    

Plans  • Land-­‐use  plans    • SEDPs  • Green  Growth  Ac4on  Plans    • Investment  Plans    PrioriOzaOon  tools  for  public  investments  • Use  of  Green  Growth  Investment  Guidelines  (for  adapta4on  and  GG)    • Adapta4on  Priori4za4on  Framework  for  socio-­‐economic  development  

Financial  architecture  Need  to  design  a  systema4c  funding  scheme  for  priority  ac4ons:  •   Public  finance  (SEDPs  &  investment  pipelines)  •   Interna4onal  Climate  finance  (GCF,  CDM/SDM,  NAMA  facility,  etc.)  •   Private  banks  (SBV  Green  Investment  Catalogue  –  expected  future  expansion  of  Green  Bonds)  •   Investment  policies  leverage  Private  sector,  such  as  PPPs,  FIT  for  green  investment  projects,  esp.  RE  and  EE  Need  for  one  coordinated  framework  that  tracks  funding  op4ons  and  progress  for  all  priority  ac4ons  

Challenges    •  To   implement  Green   growth   strategy,   about  $30  billion  will   be  needed  by   2020  of  which  70%  would  come  from  non-­‐public  sources;  

•  To   recover   from   climate   change   damages,  2-­‐6%  of  GDP;    

•  Shortage   of   policies   to   mobilize   financial  sources,   par4cularly   Interna4onal   Climate  funds;  

•  Difficul4es  in  mobilizing  foreign  and  domes4c  investors.  

VIETNAM  READINESS  FOR  GCF  

Green  Climate  Fund  (GCF)  

Ø  NDA:   The   Prime   Minister  assigned   MPI   to   be   NDA   for  GCF  at  official   letter  No.  4478/HTQT-­‐VPCP;  

Ø  Establishment   of   Climate  Finance  Task  Force  (CFTF)  and  GC F   V i e t n am   S t e e r i n g  Committee;  

Ø  Procedure   harmonization  between   Vietnam,   GCF   and  MIEs.  

•  Green Climate Fund is a global climate initiative established in 2013 under UNFCCC

•  GCF aims to support developing countries to respond to climate challenge through GHG reduction actions and improving climate resilience

•  GCF has mobilized 10.3 billion USD and plans to achieve 100 billion USD by 2020.

Green  Climate  Fund  (GCF)  

v Approved  Projects/Programmes:    •  Improving  the  resilience  of  vulnerable  coastal  

communi4es  to  climate  change  related  impacts  in  Vietnam  (29.5  million  USD  -­‐  June  2016)  

•  Readiness  and  Preparatory  Support  for  Vietnam’s  NDA  (300,000  USD  -­‐  June  2017)  

v Call  for  proposals  and  Project  pipeline  to  be  submiqed  

v Direct  access  prepara4on:  State  Bank  of  Vietnam  and  Vietnam  Development  Bank    

GCF  Private  Sector  Facility  

•  A  pilot  programme  to  mobilize  resources  to  address  adapta4on  and  mi4ga4on.  

•  Allocated  up  to  USD  500  million  over  the  course  of  the  ini4al  resource  mobiliza4on  period.  

•  GCF  support  can  include  loans,  equity,  guarantees  and  grants.  

•  No  limitaOons  on  the  project  size.  •  Sub-­‐contracts  for  GoV  projects  under  GCF.    

Annex  

07/09/17

Update  VGGS  and  AcOon  Plans    

§  7  ministries  MOF,  SBV,  MONRE,  MARD,  MOT,  MOC,  MOIT  developed  GGAP  while  others  are  on  the  right  track;  

§  15  provinces  and  ci4es  approved  GGAP  while  20  others  are  about  to  be  finalized.  

07/09/17

Source: Planning for NDC implementation | Quick Start Guide, CDKN&Ricardo 2016

07/09/17

   

THANK YOU FOR YOUR ATTENTION!

Dr.  Pham  Hoang  Mai,  Director    General    Department  of  Science,  Education,  Natural  Resources  and  Environment    Ministry  of  Planning  and  Investment  of  Vietnam  29th    August  2017  |  Hanoi,  Vietnam