Vietnam’s Green Growth Pathway:
Taking Stock and Setting Future
Directions
Dr. Pham Hoang Mai
Director General
Department of Science, Education, Natural Resources and Environment (DSENRE)
Ministry of Planning and Investment
Launch of the MPI-USAID-UNDP Initiative on “Strengthening Capacity and Institutional Reform for Green
Growth and Sustainable Development in Vietnam (CIGG)”
January 21, 2015
Outline:
• Key achievements in Green Growth
• Challenges and Opportunities
• Mobilizing and Allocating Resources for Green
Growth
• Future Directions
• Key Achievements in Green Growth
•
Viet Nam has moved green growth from being a Strategy to an
important driver forces for Sustainable Growth.
•
National Green Growth Strategy (VGGS) approved by the Prime
Minister in 2012, followed by the national Green Growth Action
Plan (VGGAP) in 2014.
•
Over three years, Viet Nam has turned strategy into reality.
• Key Achievements in Green Growth
•
Additional work is needed on the policy framework, but Viet Nam
is ready to move from policy to implementation.
•
Under the National Climate Change Committee, established the
Inter-ministerial Coordinating Board (ICB) to guide VGGS
implementation.
•
Many partners have joined Viet Nam’s ‘green coalition’, such as
UNDP, KOICA, GIZ, Belgium, the EU, ADB, USAID, and the
World Bank.
• Key Achievements in Green Growth
Under national Green Growth Action Plan, 12 task groups with 66
activities are advancing on several fronts:
•
Examining institutional arrangements for green growth
•
Revision of master plans such as the SEDP
•
Promotion of technology transfer
•
Business promotion, enterprise development, PPPs
•
Reviewing fiscal and financial arrangements
• Key Achievements in Green Growth
•
16 provinces are preparing their own Provincial GGAPs
(PGGAPs) to integrate green investment.
•
MPI, in consultation with other ministries, is formulating
templates and guidelines to support the PGGAPs.
•
MoIT, MARD, MoC, MoT, MoF, MoNRE are preparing sectoral
GGAPs.
•
MPI continues to mobilize domestic and international resources
for VGGS implementation (CFTF, REDD+, Green Climate Fund).
• Key Achievements in Green Growth
•
With Global Green Growth Institute (GGGI) and UNDP, are
working on Guideline for Green Growth Investment, ready by
April.
•
With World Bank and UNDP, conducting first Climate Public
Expenditure and Investment Review (CPEIR) to map resources
and strengthen implementation of VGGS, ready for release about
two months.
• Challenges and Opportunities
•
To implement VGGS, about $30 billion will be needed by 2020, of
which 70% targeted from non-public sources.
•
To recover from climate change damages, 2-6% of GDP.
•
Shortage of policies to mobilize financial sources, particularly
international climate funds. A work in progress.
•
Difficulty mobilizing foreign and domestic investors: need to
strengthen policy incentives.
•
Catalyze and crowd-in investment by leveraging public funds and
create PPPs supportive of green growth (e.g., transport, energy).
• Mobilizing and Allocating Resources for
Green Growth
Public:
• Government investment for climate change programs and projects,
including green growth, total 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, about $11 billion under the form of CC related projects &
programs and budget support.
• Other sources: REDD+, Vietnam Environment Protection Fund, CDM,
Green Climate Fund, other climate finance.
• Mobilizing and Allocating Resources for
Green Growth
Non-Public:
• Private investment in the form of FDI and equity, local investment,
guarantees, and specialized on-lending by state and commercial
banks.
• Government investment and ODA will be used as a catalyst to
create and attract favorable environment for private investment in
climate change and green growth (technology transfer; pilot
projects, good practice).
• Introducing on PPP modalities (infrastructure, power
generation).
• Mobilizing and Allocating Resources for
Green Growth
Public Expenditure & Investment for 5 Ministries and 2 NTPs from 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
• Mobilizing and Allocating Resources for
Green Growth
• Of total finance,
domestic sources
accounted for 64%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
ODA
Domestic
• Mobilizing and Allocating Resources for
Green Growth
•
177 programs, projects (USD 10.8 bill) related to 36 actions of
the VGGS
•
48 programs and projects related to 10 priority actions of VGGS
•
129 programs, projects related to 26 actions of VGGS
•
30 actions in the VGGS do not receive ODA supports
• Future Directions
Initiative on “Strengthening Capacity and Institutional
Reform for Green Growth and Sustainable Development in
Vietnam (CIGG)”
•
Jointly designed by MPI, UNDP, USAid in consultation with line
ministries.
•
Builds on UN, UNDP, USAid significant technical assistance during
the development of the VGGS and VGGAP.
•
Complements existing green growth initiatives by other
development partners.
• Future Directions
Specific Objectives (SOs)
SO1: To build capacities of MPI, MOF, MOT and provinces for
effective implementation and monitoring of the VGGS and VGGAP and
mainstreaming of green growth into the Socio-Economic Development
Plan.
SO2: To develop policies and regulations to promote green growth
investments and sustainable development.
SO3: To improve access to green growth financing and pilot green
projects with the private sector.
• Future Directions
Overview of activities:
• Strengthen measurement, reporting and verification (MRV)
mechanism for mitigation actions and GHG emission targets under
the VGGS.
• Support a M&E mechanism for the VGGS to report to the Interministerial Coordinating Board (ICB) under the National Climate
Change Committee.
• A well functioning Standing Office for VGGS/AP coordination, and
coordination actions implemented.
• Future Directions
Overview of activities:
• Support the preparation of policies and guidelines to assist ministries,
sectors and provinces to integrate green growth into planning,
budgeting and spending.
• Undertake policy analysis to provide inputs and support stakeholder
consultations (especially private sector) to MPI’s Department of
Local Economy to integrate green growth into the next SEDP (20162020).
• Future Directions
Overview of activities:
• Provide technical training and support to undertake marginal cost
curve studies and relevant research to define GHG emission targets
and policy options for preparation of GG action plans of
transportation sectors and target provinces.
• Design a joint training of trainers (TOT) programme on climate
change and green growth.
•
Review investment policies and barriers to identify gaps for new
policies to stimulate green investments, including renewable and
clean energy.
• Future Directions
Overview of activities:
• Revised/new public green procurement and expenditure investments
policies introduced.
• Provide technical advice and inputs for the formulation of feasible
fiscal policy frameworks and fiscal tools (e.g., environment and
resources taxes, levies) to advance green growth in Viet Nam.
• Improve Viet Nam’s climate finance architecture for green growth, as
well as reporting on effective planning, budgeting, and tracking of
climate finance spending.
• Future Directions
Overview of activities:
• Introduce a green growth investment network to facilitate dialogue
and information-sharing and best practices between private sector
investors and government.
• Provide training and technical support for project developers, private
sector and investors to get access to green financial mechanisms and
develop green projects.
THANK YOU FOR YOUR
COOPERATION & SUPPORT!
Dr. Pham Hoang Mai
Director General
Dept. of Science, Education, Natural Resources and Environment
Ministry of Planning and Investment of Vietnam
Email: hmaipham@mpi.gov.vn