monre unep-riso national workshop on capacity development for cdm hanoi, 27-28/11/2002 proposal for...

MONRE UNEP-RISO

NATIONAL WORKSHOP

ON CAPACITY DEVELOPMENT FOR CDM Hanoi, 27-28/11/2002

Proposal for establishing National Authority on CDM in Vietnam

Dr. Dao Duc Tuan

Ministry of Natural Resources & Environment

Dr. Bui Huy Phung

National Centre for Science & Technology

Proposal for establishing National Authority on CDM

Contents:

I- Reality Requirements

II- Point of view

III- Initial assessment research

IV- Reforming existing structure

V- Establishing new organizations

I- Reality requirements:

1- International requirements

* Kyoto Protocol is coming enter into force;legal framework and international organizations relating CDM are being developed

* CDM activities contribute to sustainable development in developing countries

* CO2 markets is nearly established in fact



2 - National requirements * Development demand is increasing quickly in Vietnam and CDM is a suitable mechanism. * Renovation process requires reform of structure, institution and development programme* Need to establish CDM National Authority according to Kyoto Protocol requirements* After ratification of Kyoto Protocol (25/9/2002), it is necessary to have government organization and NGOs with relevant function to cooperate and facilitate national CDM activities.


II- Point of view on CDM structure formulation 1- Short term

* Neat arrangement, based on existing organizations * Process work quickly but keep within the law * Obtain high effect in CDM market * Accord with Kyoto Protocol and domestic circumstance

2- Long termDevelopment of CDM activities and a lot of works

* Establish organizations with international level * Organization framework need strengthening to undertake whole cycle of CDM projects.


III- Initial research for establishing CDM Offices1- Kyoto Protocol and related documents 2- CDM Project Cycle

- Project design- National approval - Registration- Finance- Monitoring- Verification, certification - Insurance of CERs

1. Project design

2. Validation 4. Registration

5. Monitoring

6. Verification

7. Certification

8. Issuance of certified emission reductions :

3. Project Approval

DNA PP

NOE OE

NOE OE

PP NOE OE

1. Project design

2. Validation 4. Registration

5. Monitoring

6. Verification

7. Certification

8. Issuance of certified emission reductions :

3. Project Approval

DNA

DNA & CDM

Executive Board

NOE OE

CDM Executive

Board

PP

NOE OE

NOE OE

PP NOE OE

CDM Project Cycle in Vietnam


3- Review framework structure of relevant ministries, agencies: * Ministry of Foreign Affairs* Ministry of Finance

* Ministry of Industry* Ministry of Planning and Investment* Ministry of Science and Technology* Ministry of Agriculture and Rural Development* Ministry of Transport* Hydro-meteorological Service of Vietnam (HMS)* NGOs


Comments* Related Ministries haven’t got function and framework structure to meet CDM activity requirements at present* Only HMS (now HMS belongs to Ministry of Natural Resources & Environment) is assigned by the Government as a National Authority for implementing UNFCCC and KP * It is necessary to replenish structure to promote CDM activities in the country


4- Review existing law, organization, policy and development programme relating CDM activities * Law of land, environment, minerals, oil and gas ,...* Circular Letters, Decrees, Regulations in relevant sectors such as: Industry, Energy, Agriculture, Forestry, Transportation, Finance, etc.

Comments:* Legal framework was established that is base of sectoral activities* It is necessary to reform existing organization framework to promote CDM activities


IV Reforming of existing structure:1- Supplement core groups on CDM (e.x department,

division) in relevant ministries * Ministry of Natural Resources and Environment* Ministry of Planning and Investment

* Ministry of Finance * Ministry of Foreign Affairs

* Ministry of Industry* Ministry of Agriculture and Rural Development* Ministry of Transportation

2- Supplement CDM function for People’s Committee, special departments at local level


3- Supplement CDM function for big enterprises such as Vietnam Petroleum, Vietnam Coal Corporation (VINACOAL), Electricity of Vietnam (EVN), etc.

4- Supplement CDM function for NGOs such as science unions, private enterprises

5- Develop main research institutions related to CDM activities

6- Create favourable environment, determine relationship between organizations, guide to reach effective activities and capacity building for CDM


V. Establishing new organizations

1- According to Kyoto Protocol and CDM it is necessary to establish CDM National Offices such as Designated National Authority (DNA) and Executive Board (EB)

2- Function of DNA:

* Identify national criterion and guide to CDM activities

* Submit CDM projects to EB and monitor projects

* Collaborate with relevant international organizations in registration, monitoring, certification and insurance of CERs for CDM projects


3- Function of EB

* Approve CDM projects

* Decide and coordinate CDM activities between

ministries, provinces, NGOs and other important

activities.

* Cooperate with relevant international organizations


4- Organization proposals

a- In the short term, CDM activities are only in beginning stage, so work-load is not much

* DNA should be formulated neatly and located in Ministry of Natural Resources & Environment

* Supplement function of EB to the Office of Vietnam’s Government

b- In the long-term, when CDM activities is increased, workload will be also increased

* DNA should be strengthened and developed

* EB should be a independent organization with its power function

State management structure for sectors and proposal CDM unit

Prime MinisterPrime Minister

Ministry of industry Ministry of industry + CDM Cell or functiom+ CDM Cell or functiom

Ministry of Agriculture and Rural Ministry of Agriculture and Rural DevelopmentDevelopment

+ CDM Cell or function+ CDM Cell or function

PetroVietnamPetroVietnam+ CDM function+ CDM function

OthersOthers Other IndustriesOther IndustriesCoal VietnamCoal Vietnam+ CDM FUNCTION+ CDM FUNCTION

EVNEVN+ CDM Function+ CDM Function

National ENERGY COMMITEENational ENERGY COMMITEE+ CDM function+ CDM function

Executive BoardExecutive Board

MORI (HMS)MORI (HMS)DNA of CDMDNA of CDM

Others Others ministriesministries

monre unep-riso national workshop on capacity development for cdm hanoi, 27-28/11/2002 proposal for...

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