High-level inter-ministerial workshop held in Hanoi June 6-7, 2017 hosted by the Ministry of Agricultural Development (MARD) of Viet Nam and supported under the Integrating Agriculture in National Adaptation Plans (NAP-Ag) Programme. The meeting was attended by over 75 national and provincial level government officials, including MONRE, MARD, MPI and the Ministry of Finance (MOF), UN and development partners, private sector representatives including insurance companies, as well as non-governmental organisations.

1. Vietnam Experience with
CPEIR & CC finance tracking
Glenn S. Hodes
Climate Policy & Finance Specialist
UNDP Bangkok Regional Hub
Hanoi, 6 June 2017

2. • Governments are increasingly planning and implementing action plans
linked to their national CC policies & the Paris Agreement.
• There is often a large disconnect between these and realistic financing
--> creates an implementation gap.
• Decision-support tools can help track and prioritize resources
• While climate finance (both int’l and domestic) is expected to
increase, demand is likely to far outstrip supply.
• Better management of climate spending is strongly correlated to
more equitable, responsive actions to address the vulnerable
• Viet Nam can pioneer efforts to base its NDC and NAP on
evidence of financing gaps and analysis of the effectiveness of
budget allocations to promote resliency
Context:

3. More effective climate budgeting
• What gets monitored gets managed
• Budgets are how CC funds are often utilized and are the most
important documents to translate policy into action
• National (and local) budgets are critical for the implementation of
adaptation plans and objectives, including NAPs
• Contributes to better understanding of the economics of various
options and CCA measures through better costing & prioritizing.
• Better management strongly correlates to more equitable and
gender-responsive spending

4. What is adequate spending?
• The Government of Vietnam’s Target Program on Climate Change and Green
Growth estimates that Vietnam needs to spend (between 2016-2020):
– 4-6% of GDP for CC adaptation
– US$ 30 billion for GG promotion (approximately US$ 9 billion from State budget)
• ADB analysis (2009) concluded that to reduce CC related losses, 0.2% of GDP
needs to be invested in CC adaptation, mitigation and adaptation investment of
0.5-1.5% of GDP offer a better scenario for the national response to CC. World
Bank similar estimation of 4-6% of GDP.
• 2015 CPEIR found 18% of total expenditure was CC relevant equivalent to 0.1%
of GDP
4

5. Vietnam CPEIR – Key results
5
Total annual expenditures for
Climate Change Adaptation by key
Ministries (2010-2015)

6. Viet Nam: DISASTER RISK MANAGEMENT
PUBLIC EXPENDITURE REVIEW
DRM-PER is based on dataset of 2015 Climate Change Public
Expenditure and Investment Review (CPEIR)
• 5 Ministries: MARD, MONRE, MOIT, MOT, MOC
• 3 Provinces: An Giang, Quang Nam, Bac Ninh
• Data type: Recurrent and investment expenditure
• Time period: 2010 – 2013 PLUS: MARD Investment expenditure 2010–15
6

7. Some key findings
• DRM relevant expenditure was equivalent to 0.2% of GDP, 8.9%
of central government budget, and 22.3% of combined budget of
central government and 3 provinces.
• Similar to Thailand and Lao PDR, agriculture ministry accounted
for the highest proportion of budget relevant to DRM. In Vietnam,
MARD accounted for 39.4% of all DRM-relevant expenditure
7

8. KEY FINDINGS
Among 5 ministries, MARD had the highest number of DRM/DRR related
projects as this ministry is the focal point in dealing with natural disasters
863
416
170 26 1
0
100
200
300
400
500
600
700
800
900
1000
MARD MONRE MOT MOIT MOC
Number of projects
Filter 1
• Identify
DRM/DRR
related
projects

9. “Key word approach to filtering”
• Capacity, protection, warning, safety, safe
• Prevention, mitigation, response, emergency, recovery, rehabilitation,
reconstruction
• Disaster, flood, inundation, storm, surge, salt, salinity, earthquake,
landslide, landslip, tsunami, tide/tidal, fog
• Forest/Forestry, irrigation, water resoures management, hydo-
meteorology/Hydology/Hydrological, Meteorology/Meteorological
• Dyke, embankment, dam, weir, sluice, canal, harbor, bridge

10. DRM Relevancy as Share of Spending
10
0% 0% 0%
16%
84%
MOIT
18%
8%
68%
6% 0%
MONRE
18% 0%
24%
0%
58%
MOT
Very High High Mid Low Minor
0%
100%
MOC
Filter 2
• Identify
degree of
DRM/DRR
relevance
25%
51%
13%
10%
1%
MARD

11. Some lessons & key recommendations
• Tracking and tagging finance is important for advocacy
• Options for annual disaster relief funds allocations to
contribute to preparedness in ‘good’ years
• Linking DRM and CCA makes sense in creating an enabling
environment for investment
• Mainstreaming into national, sectoral, provincial plans
ensures funding is available when required
• Development of a budget tagging system for DRM and CC
expenditure within national FMIS

12. • Nepal: CC Budget Code implemented following a National Process which
led to a Multi-Sectoral consensus (2012). Revised high-level criteria used to
set budget ceilings by National Planning Commission to give more priority
to capital investment proposals that integrate CC & DRM risk management.
• Bangladesh: CCFF (2014) recommends integration of CC into the Budget
and Accounting System similar to what was done in gender and poverty.
• Indonesia: Ministerial Decree (No.136/2014) introduces Budget Tagging for
CC Mitigation system mandatory for seven key line ministries under the
RAN-GRK.
• Philippines: developed a common typology and guidelines for tagging CC
spending in the budget. CCC able to take stock of and monitor the national
climate response based on tagged data submissions for four fiscal years.
CC Mainstreaming in Budget
Examples in Asia
12

13. climate budget coding and tagging
systems

14. Climate Change Financing
Frameworks

15. • An integrated, strategic framework to better mobilize,
manage and target climate finance so as to bridge
existing finance and policy implementation gaps.
• Outlines a reforms road map to enhance fiscal planning
and budget management by systematically integrating CC
and improving inter-ministerial coordination.
• Supports decision-makers to strengthen capacity of
country systems to deliver climate finance in a more
effective, equitable, and accountable way.
• Recognizes broad range of funding modalities, sources
and uses that comprise a integrated financing plan.
What is a CC Financing Framework (CCFF) ?
Download NOW at
www.CFADE.org

16. “Integrating Agriculture into NAPs” Results & Plans
• THAILAND
– Upgrading sector CC policy & Action Plan, links to operational planning & budgeting
– Strengthening project design procedures and appraisal processes to integrate CC risk
into internal project guidelines
– Costing and developed more bankable programme proposals based on MCA & CC-CBA.
• VIETNAM
– Work with selected Mekong Delta provinces on CPEIRs and prioritized investment
programmes in water supply linked to target programe and Decision 593 scheme
• NEPAL
– Appraisal of key sector CCA measures in partnership with GCF Readiness Programme
– Enhancing project preparation guidelines and CC budget coding, expenditure tracking
capacities in MoAD, MoLD
16

17. Sector Plans Reflect
CCA & Policy
Targets/Guidance
Local Vulnerability
Assessments,
Adaptation Plans &
Budgets
Adaptation
projects costed
& prioritized
National
Adaptation
Plan
Implementing
adaptation
practices
Monitoring
CCA & DRR
interventions
Target resources
to priority effective
measures
UNDP Model for National Planning &
Budgeting Process & NAP entry points National
Development
Plans &
Budget/MTEF
Sector Plans
& Guidance
Sub-National
Plans & Budget
Allocations
Project
Formulation
Guidance &
Practice
Program/Project
Implementation
Monitoring,
Reporting &
Evaluation
Sector Performance
Review & Impact
Evaluation