Vietnam’s Perspective

Presenter : MSc. Vuong Xuan Hoa

Content Section Details

I NAMAs in Vietnam

II 1. A specific NAMA in Vietnam

2. NAMA intervention-need assessment

3. Lesson learned and success factors

III INDC of Vietnam

IV NAMA supporting INDC

V Where can you find more about our NAMA?

I. NAMAs in Vietnam

Currently, DMHCC is a representative for national focal point for NAMA registry to the UNFCCC Secretariat

• Policies, institutions for NAMA/MRV is in the process of completion. • Some Activities for NAMA preparation is underway. • Some NAMA proposals have been developed but not yet accessible to international assistance

NAMA potential in policies/plans/progra

mmes

Mitigation targets in Decision 1775/QĐ-

TTg dated 21/11/2012)

National Greenhouse Gas Inventory (GHG)

for Viet Nam National

Communications to UNFCCC

Orientation on mitigation in

strategies Developing and

identifing mitigation options (E.g. CDMs)

Develop NAMA framework in Viet

Nam

Completing the technical guideline

for developing NAMA in Viet Nam (IMHEN&UNDP)

Decree 21/2013 / ND-CP dated 03/04/2013 MONRE is responsible for: Developing and deploying systems for domestic and international MRV

The working team (DMHCC) for integrating NAMA was established by MONRE

Decision No. 187/QĐ-BTNMT dated 21/02/2013

NAMAs ongoing in Vietnam No. NAMA Projects/Proposals Organizations Involved/Donors Time frame

1 NAMA in the Waste Sector: Waste-to-resource for cities in Viet Nam IMHEN; UNESCAP 2013-2016

2 Pilot programme for supporting up‐scaled mitigation action in Vietnam’s

cement sector Nordic Partnership Initiative

3 Vietnam‐Japan Capacity‐building Cooperation and Joint Study Project for

NAMA in waste sector in a MRV manner (Phase 1 & 2)

Oversea Environmental Corporation Center

(OECC) ; IMHEN; sponsored by MOEJ

2012

4 Vietnam– Japan JCM Project Finding and NAMAs Capacity Building

Cooperation Programme OECC

5 Support wind power development in Viet Nam IMHEN; DMHCC; UNEP Risoe 2013-2014

6 Wind NAMA proposal MOIT; GIZ 2013

7 Support bioenergy development in Viet Nam Climate change and Sustainable Development

Center; DMHCC; UNEP Risoe 2013-2014

8 Production and application of hybrid and electric cars in Vietnam (Phase 1

& 2) IMHEN; Mai Linh Corporation 2013-2020

9 Energy efficiency in commercial buildings DMHCC; UNEP 2014

10 Renewable energy Development Fund (REDF) MOIT; GIZ

2013

11 Biogas electricity production in Medium and large sized Livestock farms Center for climate change and sustainable

development; DMHCC, UNEP Risoe

12 Low-carbon bus NAMA GIZ; IMHEN 2016

13 NAMAs Supported by Fast Start Climate Finance: Danish Support for the

Vietnam Energy Efficiency Programme (Phase 1 & 2) Danish 2016-2015

II.1. NAMA in the Waste Sector: Waste to Resources for Cities in Vietnam

Objective: To support Viet Nam in reducing GHG emissions from the solid waste sector through the implementation of waste management practices that are in line with the principles of 3R and the recovery of resources from waste, while at the same time contributing to sustainable development goals in Viet Nam.

A baseline and emission reduction (NAMA) scenarios were modelled to assess the GHG emission reduction impacts of fully implementing the NAMA programme

A complete transformation of Viet Nam’s solid waste sector whereby all waste generated by 2030 is collected and treated through the methods and technologies endorsed by the NAMA

GHG emissions from the solid waste sector could be reduced by 71% by 2030, i.e. by 41.4 million ton CO2eq in relation to the business-as-usual scenario

II. 1. NAMA in the Waste Sector: Waste to Resources for Cities in Vietnam (cont)

• Reduction of waste disposal costs incurred by municipalities;

• Potential source of revenues through the sale of compost, biogas, electricity, heat, RDF, etc.

Economic benefits

• Reduced dependence on inorganic fertilizers by capture and reuse of nutrients;

• The use of compost enriches soils with nutrients;

• Protection of groundwater and surface water resources.

Environmental benefits

• Elimination of malodorous compounds;

• Reduction of vermin and pathogens;

• Deactivation of weed seeds;

• Potential for creating new jobs;

• One ton of waste processed can directly benefit 2,000‐3,000 people;

• Increases the awareness of the community to 3R principles.

Social benefits

GHG reduction benefits

A typical IRRC facility can process

up to 20 ton organic waste per

day, which can potentially reduce

6,600 tonnes of methane per year compared to BAU

II.2. NAMA intervention-need assessment

Criteria when developing/prioritizing NAMAs:

development benefits;

mitigation potential;

cost;

other barrier during NAMA implementation

Steps in prioritization

Identifying technologies /

measures

Assessing the technologies

through

Multi Criteria Analysis

Making the final decision

Steps in NAMA activity and measure identification and planning

-Identify and prioritise mitigation (NAMA) opportunities

• Multi criteria analysis, development priorities, marginal abatement costs, local employment, etc

- Barrier analysis for market penetration

• Legal, institutional, social, knowledge

- Identify policy and measure options

•Legal, institutional, Finance

Assess the policy and measure options, and select policies and measures to be included in a NAMA

II.2. NAMA Financing

Source of Funds International Public Finance – GEF, GCF, Bilaterals, Multilateral Banks, etc. Domestic Public Finance – Budgetary resources, Development Financial Institutions National and International Financial institutions – Banks, Large Scale Investment Funds (e.g., Pension Funds, VEPF) Equity Investors – the Private sector (e.g., operator of the wind power plant) Carbon markets

The order of the financial leverage from various sources

Source: UNDP, UNFCCC, UNEP RisØ 2013

Private sector

investments

Public funds

International climate

finance

National public

finance

Enabeling environment: Policies, regulation, capacities, information…

Source: GIZ

(Source: World Bank group)

A sustainable investment in a NAMA improves • liquidity, (transformation will increase capital flows in targeted market) • revenue, (transformation secures long-term profitability and enhances enabling environment) • risk reduction (sustainable goals will secure public protection of investments to a certain degree) (compared to a non-sustainable investment, which is characterized by equal quantitative financial values)

II.2. NAMA Financing (cont)

Initial investment guidelines will be composed of the following criteria:

Impact potential

Paradigm shift potential (transformational change)

Sustainable development potential

Needs of the recipient (host countries)

Host country ownership

Efficiency and effectiveness

II.2. NAMA Financing (cont)

II.3. Lesson learned and success factors

Source: Nicholas Harrison, 2014

Success Factors for Mitigation Initiatives

Engaging and

Managing Stakeholders

Mainstreaming and

Institutionalising

Transparent, Verifiable

Information

Process and Framework

Target, Incentivise and Enforce Mitigation

Actions

Technical Capacity

Finance

Leadership and Political Commitmen

t

Financial support:

securing adequate financial resources and implementing the right incentives.

Ensuring financial transparency and active stakeholder engagement

Building on existing policies/structures: Integrating actions with existing policies

Involving the right partners at the right time, deciding on ideal size of the group: have a large impact on the success of projects, avoid problems later.

Providing a long-term perspective: to reassure and convince private companies and other stakeholders about the benefits and potential return on investments, can enhance political acceptability.

Involvement of subnational actors: to act and support delivery of national policies, better information for national adaptation and mitigation planning.

II.3.Lesson learned and success factors (cont)

Lesson learned

III. INDC of Vietnam

Ob

ject

ives

• Vietnam’s INDC puts forward a target to reduce emissions by 8% relative to BAU in 2030, and proposes that a 25% reduction can be achieved conditional on support. While Vietnam has made no formal commitments or pledges under the Cancun Agreements, the country’s INDC builds largely on existing policies and incentives for energy efficiency and renewable energy generation, as well as forestry and land use policies (CCAP, 2015) • The INDC describes intended sectoral actions in broad terms, based on mitigation options developed and assessed using macroeconomic models. Key challenges identified in this process included some inconsistency in baselines (Tran Mai Kien, 2015) • The INDC does not specify a national system for GHG accounting and measurement, reporting and verification (MRV) (CCAP, 2015)

Type of contribution

GHG emission reduction compared to the Business-As-Usual scenario (BAU scenario)

Scope Entire economy (Energy; Agriculture; LULUCF, Waste)

GHGs CO2, CH4, N2O

Period 01/01/2021 - 31/12/2030

Methodologies IPCC guidelines; CDM methodologies

Data National statistics; National socio-economic development plans and sectoral activity data

Metric Applied GWP 100y values published in IPCC AR4 (CO2e): CO2 = 1 CH4 = 25 N2O = 298

Baseline scenario based on the assumption of economic growth in the absence of existing CC policies. GHG emissions in 2010 & projection for 2020, 2030: 2010: 225.6 million tCO2e 2020: 466 million tCO2e 2030: 760.5 million tCO2e

Contribution 10%-20% with and without international support

Mitigation component

Capacity building in prediction and warning natural disasters, climate monitoring;

Actively prevent natural disaster and reduce loss and damage;

Implement measures to ensure food and water resource safety, gender equality, social security, public health, enhance life and protect natural resources in the context of CC;

Protect coastal deltas and avoid flooding in big cities.

Adaptation component

IV. NAMA supporting INDC

The roles of NAMAs in the new post-2020 global climate agreement can be summarised as follows:

NAMAs can be a part of national climate change mitigation efforts and the Green Growth Strategy, a means for international technical and financial support, and a tool for implementing international commitments under the new post-2020 global climate agreement.

NAMAs comply with the principles of the new post-2020 global climate agreement: it requires the participation of relevant parties, the inclusion of diversified efforts and the possibility to combine different tools, such as market mechanisms and other commitments.

At present, a number of mechanisms support NAMA development and implementation, such as the NAMA Facility and the Green Climate Fund (GCF).

NAMAs can be transformed or mainstreamed into a country’s INDC and link to other mechanisms within the Convention on Climate Change.

IV. NAMA supporting INDC (cont)

Source: Prof. Tran Thuc, IMHEN

Timeline Prior to 2008

2008-2012

2013-2020

Post 2020

Annex I

Economy-wide GHG

emissions reduction

targets

Quantitative GHG

emission reduction

targets according to Kyoto Protocol (Period 1)

Quantitative GHG

emission reduction

targets according to Kyoto Protocol

(Period 2)

INDCs

Non Annex I

Voluntarily mitigate

GHG emissions

NAMAs

IV. NAMA supporting INDC (cont)

can be actions to implement INDCs;

can be an entry point for the determination of INDCs;

can be considered a “contribution”, which means that once an INDCs becomes a commitment NAMAs will no longer be voluntary efforts;

Parties who already submitted NAMAs that contain GHG emission reduction targets under the Copenhagen agreement can transform them into their INDCs.

NAMAs

NAMAs are voluntary (a key to this

approach’s success) INDCs are implicitly legally

binding (especially when INDCs are converted into official commitments).

INDCs and NAMAs are closely linked, but they are not the same thing

NAMAs can be considered as a part of INDCs and represent an entry point for determining INDCs using a bottom up approach. If NAMAs contain clear objectives, they can be an important tool for the implementation of a country’s INDC. Therefore, a country’s INDC acts as a general target while NAMAs clarify necessary action. INDCs can accelerate NAMA development and implementation.

NAMA INDC

a flexible framework to diversify GHG emission reduction efforts while also contributing to national development strategies

V. Find more about our NAMA?

Links to website, reports, articles, etc. • International climate finance sources: www.climatefinanceoptions.org

• www.mitigationpartnership.net/gpa

• UNEP Risø Center – URC NAMA pipeline: http://namapipeline.org

• Ecofys – Ecofys NAMA database: http://nama-database.org

Contact details of national focal point for this NAMA

• DMHCC website: http://www.dmhcc.gov.vn/en/

Thank you for your

attention!