Transcript The Viet Nam Green Growth Strategy

Viet Nam
Green Growth Strategy
Dr. Pham Hoang Mai
Director General
Dept. of Science, Education, Natural Resources and
Environment
Ministry of Planning and Investment of Vietnam
VIETNAM and MDGs
• Vietnam has completed three MDGs:
(i) to eradicate extreme poverty and hunger,
(ii) to achieve universal primary education,
(iii) to promote gender equality and empower women.
• There is big possibility that Vietnam complete MDG 4
and MDG 5 of reducing Child mortality rates and
improving maternal health before 2015.
• Three other MDGs including (i) to combat HIV/AIDS,
Malaria and Other Diseases, (ii) to ensure
environmental sustainability, (iii) global partnership
for development have created positive outcome.
CHALLENGES
•
•
•
•
•
•
Economic Challenges:
Existing Growth model of Vietnam based on:
Extensive exploitation of natural resources;
Investment from Government (including ODA) and foreign
direct investment;
Low competitiveness;
Social and Environmental Challenges:
Many MDGs have been achieved but still fragile;
Low quality of life due to pollution, decreasing traditional
cultural values;
New challenges such as climate change, widening the gap
between developed and developing countries.
New Way of Growth – GREEN GROWTH.
VIETNAM GREEN GROWTH
• Vietnam Green Growth Strategy:
To promote the process of restructuring and improving
economic institutions towards more efficient use of
natural resources, improved competitiveness of the
economy.
This will contribute to respond to climate change,
reducing poverty and ensuring sustainable economic
development.
Vietnam Green Growth Strategy
• Strategic Task 1 of Low Carbon Growth: by 2020
to reduce voluntarily the intensity of greenhouse
gas emissions by 8-10% as compared to the 2010
level and 20% with additional international
support;
• Strategic Task 2: Greening Production with the
aim to encourage the development of green
industry and green agriculture based on
environmentally friendly structures, technologies
and equipment;
• Strategic 3: Greening of Lifestyles and promoting
sustainable consumption.
MACC OPTIONS
CO2 emission reduction potential of sub-sectors/options by cost
2020
Cost of CO2 emission reduction (US$/ton CO2)
<=0
Sub-sector
<=5
<=10
<=20
Amount of
Amount of
Amount of
Amount of
No. of emission No. of emission No. of emission No. of emission
option reduction option reduction option reduction option reduction
(MtCO2)
(MtCO2)
(MtCO2)
(MtCO2)
Building
3
0.17
3
0.17
3
0.17
3
0.17
Construction material
1
0.49
1
0.49
1
0.49
1
0.49
Cement
Textile
3
2
2.61
0.08
3
2
2.61
0.08
3
2
2.61
0.08
3
2
2.61
0.08
Household
8
14.80
9
16.22
9
16.22
9
16.22
Pulp and paper
2
0.19
2
0.19
2
0.19
2
0.19
Electricity Gen.
0
0
1
15.49
3
17.96
9
61.23
Iron and steel
Road transportation
2
1
0.09
3.45
3
1
0.22
3.45
3
1
0.22
3.45
3
1
0.22
3.45
Total
22
21.88
25
38.92
27
41.38
33
84.65
KEY SOLLUTIONS
•
•
Review and adjust sectoral and regional master
plans towards limiting the development of
economic sectors that generate significant
environmental pollution and degradation of
natural resources, while creating favourable
conditions for the development of new green
production sectors;
Create legal frameworks supporting Green
Growth;
KEY SOLLUTIONS
• Development of sustainable infrastructure for:
transportation, energy, irrigation and urban
works
• Promote clean and green technological
innovation
• Sustainable Urbanization
• Develop the new rural model with lifestyles in
harmony with environment
• Promoting sustainable consumption and
building green lifestyles
• Human Resource Development
VGGS Action Plan
Total: 12 group of activities with 66 activities
dealing with several aspects:
- Institutional arrangements;
- Revision of Master plans;
- Technological transfer;
- Promotion business involvements;
- Financial arrangements.
Challenges
• Total economic costs of CC are about 2-6% GDP or $3-9
billions (ADB 2009) and $1-2,5 billion will be needed for
adaptation;
• To implement Green growth strategy, about $30 billion will
be needed by 2020;
• Shortage of policies to mobilize financial sources, particularly
International Climate funds;
• Difficulties in mobilizing international and domestic investors.
DEMAND FOR GREEN FINANCE
List of GHG emission options and the result of MACC, 2020 (discount rate = 12%)
Total annual CO2
emission saved
Average MAC
No. of
options
Total capital
cost (mil. US$)
Building
3
3.33
0.17
-69.46
Construction materials
1
17.54
0.49
-14.39
Cement
3
725.00
2.61
-45.27
Textile
2
0.00
0.08
-60.28
10
2,279.19
16.54
-32.32
2
0.00
0.19
-93.46
10
27,625.00
61.37
16.11
Iron and steel
3
79.50
0.22
-44.60
Road transportation
1
0.00
3.45
0.00
35
30,729.56
85.12
Sub-sector
Household
Pulp and paper
Electricity Generation
Total
(US$/ton CO2)
(MtCO2)
THE ROLE OF GOVERNMENT
• Revise development strategy toward scale down
industries which heavily based on the exploitation and
consumption of natural resources;
• Create social security system to maintain the MDGs
achievements;
• Set up legal framework for Green Growth;
• Promote the participation of private sector;
• Facilitate the transfer of modern technology;
• Implement pilot Green projects and disseminate good
practices.
Forms of Climate Change Finance
1. Public:
• Government investment for Climate Change projects and programs
including Green Growth (around $1 billion annually):
- National Targeted Programs (NTP-RCC, Energy Efficiency,
Reforestation);
- Projects and programs directly link to Climate Change and Green
Growth.
• Current expenditure for research, capacity building projects
• ODA: from 1993 of about $12 billion under the forms of CC related
projects & programs and budget support;
• Others: REDD+, Vietnam Environment Protection Fund, CDM.
2. Non-Public: Private Investment under the forms of FDI, Equity,
Local Investment etc.
PUBLIC EXPENDITURE & INVESTMENT FOR
5 MINISTRIES & 2 NTP (2010-2013)
Total expenditure, planned, constant price 2010, VND bill.
4500
20.00
4000
18.00
16.00
3500
14.00
3000
12.00
2500
10.00
2000
8.00
1500
6.00
1000
4.00
500
0
2.00
2010
2011
2012
2013
Mitigation
91.05
7.11
24.51
121.07
Adapt.&miti.
215.61
192.97
171.46
182.94
Adaptation
3712.85
2913.782
2832.653
3377.874
18.56
15.96
13.99
18.86
Share of state budget (%)
0.00
ODA & CLIMATE FINANCE
7/18
/201
5
Solutions
• Legal Framework: Formulating Action plans/ Priority Projects for
Climate Change & Green Growth strategies.
• Climate Financial Mobilization:
+ Develop market based mechanism to generate financing for green
growth (NAMAs, future cap and trade system).
+ Improve existing capacity and consolidate the set up and
strengthening of fiduciary procedures for resource mobilization
(VEPF, VGGSF…) and formulating national institutions eligible for
direct access to funds.
+ Set up Climate Finance Task Force & Climate Finance Options.
• Climate Finance Utilization:
+ Formulating Adaptation Prioritization Framework & Green
Investment Guidelines for public investment.
Solutions
• Engagement of private sector:
+ Government investment and ODA will be used as a catalyst
to attract/create favorable environment for private
investment in Climate Change/Green Growth (Technology
transfer/Pilot projects/Good practice);
+ Introducing on PPP modalities (infrastructure, power
generation ).