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Mainstreaming Climate Change and
Public Expenditures for Climate Change
Nguyễn Tuấn Anh
Deputy Director General
Department of Science, Education, Natural Resources and Environment
Ministry of Planning and Investment
Legal documents and tools
• 5-Year Socio-economic Development Plan 2016-2020
• Draft Law on Planning (in pipeline)
• Mekong Delta Development Plan with climate
change adaptation (WB – Department of Planning
Management - MPI)
• Decision by MPI issuing tools for prioritizing
adaptation of climate change in planning (APRT:
in collaboration with WB)
• Classification of investments for climate change
response (to be issued soon)
PUBLIC INVESTMENT AND EXPENDITURES FOR
CLIMATE CHANGE
(2010-2015)
MPI, WB and UNDP, 2015, Financing Viet Nam’s Response to Climate Change:
Smart investment for a sustainable future. Climate Public Expenditures and
Investment Review (CPEIR), April 2015.
Total annual expenditures for CC mitigation and adaptation
decreasing (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
Adaptation
Adapt.&miti.
Mitigation
bill. VND
Annual expenditures for CC adaptation of
different Ministries (2010-2015)
Annual expenditures for CC mitigation of
different Ministries (2010-2015)
SHORTAGE OF INVETSMENT for CC Adaptation and Green
Growth period 2016-2020 (billion USD)
CC
Adaptation
(at 4% of
GDP)
GG ($9
Bil.)
GG
(NDC)
Total
demand
MTIP
2016-
2020
Shortage
46,85 9 17,9 24
Scenario
1
55,85 31,85
Scenario
2 64,75 40.75
* 20% of investment for green growth will be used for the 5 key Ministries, at 17.3 billion USD;
** 5% of investment for green growth will be used for all the provinces, at 1.57 billion USD;
*** Major target programs: 5.2 billion USD
ODA for Green Growth
– ODA Fund for Green Growth:
• Over 10 billion USD has been pledged to support about 180
programs and projects to implement 36 priorities listed in
Viet Nam’s Green Growth Strategy (VGGS);
• 30 priorities in VGGS haven’t received any ODA support.
– Support Program to Respond to Climate Change (SP-RCC):
The fundings from development partners are merged into the state
budget and allocated for the formulation of policies within the
framework of the SP-RCC, as well as prioritized projects within the
National Target Program on Climate Change and Green Growth
– ODA Resource Mobilization Framework:
Support the planning and implementation of the Green Growth
Strategy through technical assistance and direct or indirect
financing in a suitable manner and time, based on the strengths of
each development partner.
Climate Private Expenditures and Investment Review
(CPrEIR)
CPrEIR 2010-2015
Climate investment with participation of all
economic sectors in Viet Nam, including SOEs.
Investment overview of some selected sectors
(energy, industry, agriculture, transportation,
forestry) both in adaptation and mitigation.
Timeline: late 2016
No statistics on private investment, scattered data,
in various forms and sources, many locations...
- Total investment in renewable energy: ~ 8.5 billion
USD for period 2010-2015; approximately 1.7
billion USD/year;
- Private investment for climate change mainly in
mitigation.
International
experience:
• 60% (about 200
billion USD) of
global climate
investment comes
from private sector.
• Private sector is the
biggest contributor
of investment in
developed
countries.
CPEIR in economic sectors
CC
Activities
Economic
sector
Type of project Industry Studies/Implementation
Mitigation
Industries
Renewable energy
(RE)
Hydropower, biomass Power Engineering (PE)
Wind, solar energy,
biogas
Power Engineering and heating
Energy efficiency
(EE)
Cement Heat recovery from waste, change of
co-production technologyIron and steel
Sugar
Chemical Improving or renovating technology;
recovering biogas and waste
treatment; 3R, using energy efficient
equipment and technology.
Pulp and paper
Food, beverages and
apparel
Commerce and
Domestic
Construction,
domestic
Transportation EE, biofuels,
Modal conversion
Cargo transportation,
passenger
transportation
Ethanol, LPG, electric bikes
Agriculture Projects not
reducing and/or
improving carbon
capture and
storage
Rice farming,
livestock production
Composting agricultural waste to
make fertilizers, dry/wet irrigation
for systems of rice intensification
(SRI), biogas production from
livestock waste...
Forestry - Afforestation in non-forest areas
- Restoring forest in areas of degradation
Adaptation
NFV Year Objectives Current fund
availability
Managed
by
Strategic Fund
for Green
Growth
2014 Mobilise and allocate national and
international finance;
Goal: Expanding scale of assistance
for prioritized areas.
5.5 million EUR MPI
Environmental
Protection Fund
2014 Providing finance for environmental
protection, natural resources and
biodiversity
1,000 billion VND
(44.6 million
USD)
MONRE
Climate
Innovation
Center Viet Nam
2015 Supporting enterprises using clean
technologies in first 3 years after
establishment;
Improving accessibility to climate-
friendly products and services
4.18 million USD MOST
Green Credit
Trust Fund
(GCTF)
2007 Promoting investment of clean
technology SMEs.
5 million USD Viet Nam
National
Cleaner
Production
Center
(VNCPC)
FUNDING FOR CC AND GREEN GROWTH
CC, GREEN GROWTH
AND PRIVATE SECTOR
• Obvious opportunities for private sector,
especially in green growth (requiring about
70% of investment);
• Reformed legal framework to facilitate private
investment in climate change and green
growth (PPP, Taxes, Fees);
• List of climate change and green growth
projects has been approved by formulation of
Action Plan.
Thank you for your attention!
Department of Science, Education, Natural Resources and Environment
Ministry of Planning and Investment

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NAP Training Viet Nam - Mainstreaming Climate Change and Public Expenditures for Climate Change

  • 1. Mainstreaming Climate Change and Public Expenditures for Climate Change Nguyễn Tuấn Anh Deputy Director General Department of Science, Education, Natural Resources and Environment Ministry of Planning and Investment
  • 2. Legal documents and tools • 5-Year Socio-economic Development Plan 2016-2020 • Draft Law on Planning (in pipeline) • Mekong Delta Development Plan with climate change adaptation (WB – Department of Planning Management - MPI) • Decision by MPI issuing tools for prioritizing adaptation of climate change in planning (APRT: in collaboration with WB) • Classification of investments for climate change response (to be issued soon)
  • 3. PUBLIC INVESTMENT AND EXPENDITURES FOR CLIMATE CHANGE (2010-2015) MPI, WB and UNDP, 2015, Financing Viet Nam’s Response to Climate Change: Smart investment for a sustainable future. Climate Public Expenditures and Investment Review (CPEIR), April 2015.
  • 4. Total annual expenditures for CC mitigation and adaptation decreasing (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 Adaptation Adapt.&miti. Mitigation bill. VND
  • 5. Annual expenditures for CC adaptation of different Ministries (2010-2015)
  • 6. Annual expenditures for CC mitigation of different Ministries (2010-2015)
  • 7. SHORTAGE OF INVETSMENT for CC Adaptation and Green Growth period 2016-2020 (billion USD) CC Adaptation (at 4% of GDP) GG ($9 Bil.) GG (NDC) Total demand MTIP 2016- 2020 Shortage 46,85 9 17,9 24 Scenario 1 55,85 31,85 Scenario 2 64,75 40.75 * 20% of investment for green growth will be used for the 5 key Ministries, at 17.3 billion USD; ** 5% of investment for green growth will be used for all the provinces, at 1.57 billion USD; *** Major target programs: 5.2 billion USD
  • 8. ODA for Green Growth – ODA Fund for Green Growth: • Over 10 billion USD has been pledged to support about 180 programs and projects to implement 36 priorities listed in Viet Nam’s Green Growth Strategy (VGGS); • 30 priorities in VGGS haven’t received any ODA support. – Support Program to Respond to Climate Change (SP-RCC): The fundings from development partners are merged into the state budget and allocated for the formulation of policies within the framework of the SP-RCC, as well as prioritized projects within the National Target Program on Climate Change and Green Growth – ODA Resource Mobilization Framework: Support the planning and implementation of the Green Growth Strategy through technical assistance and direct or indirect financing in a suitable manner and time, based on the strengths of each development partner.
  • 9. Climate Private Expenditures and Investment Review (CPrEIR) CPrEIR 2010-2015 Climate investment with participation of all economic sectors in Viet Nam, including SOEs. Investment overview of some selected sectors (energy, industry, agriculture, transportation, forestry) both in adaptation and mitigation. Timeline: late 2016 No statistics on private investment, scattered data, in various forms and sources, many locations... - Total investment in renewable energy: ~ 8.5 billion USD for period 2010-2015; approximately 1.7 billion USD/year; - Private investment for climate change mainly in mitigation. International experience: • 60% (about 200 billion USD) of global climate investment comes from private sector. • Private sector is the biggest contributor of investment in developed countries.
  • 10. CPEIR in economic sectors CC Activities Economic sector Type of project Industry Studies/Implementation Mitigation Industries Renewable energy (RE) Hydropower, biomass Power Engineering (PE) Wind, solar energy, biogas Power Engineering and heating Energy efficiency (EE) Cement Heat recovery from waste, change of co-production technologyIron and steel Sugar Chemical Improving or renovating technology; recovering biogas and waste treatment; 3R, using energy efficient equipment and technology. Pulp and paper Food, beverages and apparel Commerce and Domestic Construction, domestic Transportation EE, biofuels, Modal conversion Cargo transportation, passenger transportation Ethanol, LPG, electric bikes Agriculture Projects not reducing and/or improving carbon capture and storage Rice farming, livestock production Composting agricultural waste to make fertilizers, dry/wet irrigation for systems of rice intensification (SRI), biogas production from livestock waste... Forestry - Afforestation in non-forest areas - Restoring forest in areas of degradation Adaptation
  • 11. NFV Year Objectives Current fund availability Managed by Strategic Fund for Green Growth 2014 Mobilise and allocate national and international finance; Goal: Expanding scale of assistance for prioritized areas. 5.5 million EUR MPI Environmental Protection Fund 2014 Providing finance for environmental protection, natural resources and biodiversity 1,000 billion VND (44.6 million USD) MONRE Climate Innovation Center Viet Nam 2015 Supporting enterprises using clean technologies in first 3 years after establishment; Improving accessibility to climate- friendly products and services 4.18 million USD MOST Green Credit Trust Fund (GCTF) 2007 Promoting investment of clean technology SMEs. 5 million USD Viet Nam National Cleaner Production Center (VNCPC) FUNDING FOR CC AND GREEN GROWTH
  • 12. CC, GREEN GROWTH AND PRIVATE SECTOR • Obvious opportunities for private sector, especially in green growth (requiring about 70% of investment); • Reformed legal framework to facilitate private investment in climate change and green growth (PPP, Taxes, Fees); • List of climate change and green growth projects has been approved by formulation of Action Plan.
  • 13. Thank you for your attention! Department of Science, Education, Natural Resources and Environment Ministry of Planning and Investment