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Introduction to CDM National Authority and CDM potential projects in Viet Nam

Introduction to CDM National Authority and CDM potential projects in Viet Nam. Nguyen Khac Hieu Deputy Director General International Cooperation Department Ministry of Natural Resources and Environment of Viet Nam. Overview. Vietnam ratified UNFCCC on 16 November 1994.

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Introduction to CDM National Authority and CDM potential projects in Viet Nam

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  1. Introduction to CDM National Authority and CDM potential projects in Viet Nam Nguyen Khac Hieu Deputy Director General International Cooperation Department Ministry of Natural Resources and Environment of Viet Nam

  2. Overview • Vietnam ratified UNFCCC on 16 November 1994. • Kyoto Protocol (KP): signed on 3 December 1998 and ratified on 25 September 2002. • Ministry of Natural Resources and Environment (MONRE) is assigned by the Government as a National Authority to implement UNFCCC and KP. • Submitted first national communication to UNFCCC in November 2003

  3. Overview • The project: “Capacity Development for the Clean Development Mechanism in Viet Nam”, phase 2 was carried out in Viet Nam in 2003 with 6 main tasks. • International Cooperation Department, MONRE is a Executing Agency to coordinate and carry out the project.

  4. Overview • Task 1: Public information for raising CDM awareness • Task 2: Capacity development on CDM for policy makers • Task 3: Establishment and capacity development for CDM National Authority (CNA) • Task 4: Capacity development for stakeholders relevant to CDM projects • Task 5: Capacity building on CDM research and education • Task 6: Creating a pipeline of CDM eligible projects

  5. CNA in Viet Nam To meet one of three basic requirement: • Ratification of the KP • Establishment of a CDM National Authority (CNA) • Voluntary participation in the CDM

  6. CNA in Viet Nam (cont.) Point of view on CNA * Based on existing organizations with neatly arrangement * Process quickly work related to CDM but keep within the existing law * Obtain maximum possible benefit from participation in the CDM market * Accord with Kyoto Protocol and domestic circumstance * Capacity development for the CNA to manage CDM activities plays an important role in CDM implementation in the country

  7. CNA in Viet Nam (cont.) 1. Establishment International Cooperation Department, MONRE • Foundation: - Official Document No. 502/BTNMT-HTQT dated 24 March 2003 - Promulgating CNA of Viet Nam at COP 9 of UNFCCC, Milano, Italy, 12/2003

  8. CNA in Viet Nam (Cont.) 2. Functions and tasks • Building national assessment criteria, regulations and guidelines on Clean Development Mechanism (CDM). • Assessing CDM projects at the national level. • Submitting potential CDM projects to CDM National Executive and Consultative Board (CNECB) for evaluating them. • Receiving, assessing and submitting Project Idea Note (PIN) or Project Design Document (PDD) of CDM projects to the Minister of MONRE for issuing a formal letter of endorsement or letter of approval respectively. • Providing CDM information to interested investors, related organizations, consultants and public. • Managing and co-ordinating CDM activities and investment in Viet Nam.

  9. CNA in Viet Nam (Cont.) • Documents regarding guideline for CDM activities: a.Document No. 465/BTNMT-HTQT dated 2/3/2003 regarding identification, development and registration of CDM projects b. Document No. 1022/BTNMT-HTQT dated 8/5/2003 to inform: 1. establishment of CDM National Executive and Consultative Board and, 2. prior investment fields and issues for CDM projects in Viet Nam in the next period

  10. CNECB in Viet Nam • Establishment • Decision No. 553/QD-BTNMT dated 29 April 2003 • Decision No. 813/QD-BTNMT dated 08 July 2004

  11. CNECB in Viet Nam (Cont.) Members of CNECB • MONRE (one chairperson, one permanent representative and one secretary) • Ministry of Foreign Affairs (MOFA) • Ministry of Finance (MOF) • Ministry of Planning and Investment (MPI) • Ministry of Trade (MOT) • Ministry of Science and Technology (MOST) • Ministry of Agriculture and Rural Development (MARD) • Ministry of Industry (MOI) • Ministry of Education and Training (MOET) • Viet Nam Union of Science and Technology Associations (VUSTA)

  12. CNECB in Viet Nam (Cont.) Functions and tasks • Providing consultation to MONRE on policies related to development, implementation, management of CDM activities in the country. • Providing consultation on guidance and assessment for CDM projects in Viet Nam under the Kyoto Protocol and UNFCCC. Annual meetings of CNECB: 2 times, one in April and the other in September.

  13. CDM’s Institutional Arrangement Ministry of Natural Resources and Environment CDM National Executive and Consultative Board EB International Cooperation Department - CDM National Authority - Project Developers CDM Secretariat (NOCCOP) Consultation Energy Technical Expert Group Non-Enegy Technical Expert Group

  14. + Project Document Vietnamese Opinion PP OE CNA NO Exclusive Criteria REJECTED YES Priority Criteria YES APPROVED Proposed approval procedure for CDM projects in Viet Nam

  15. Approval Procedure for CDM Project PIN Project Developer No National CDM criteria yes CNA Endorsement letter OE Project Developer PDD CNECB No CDM criteria yes CNA Letter of Approval CDM Executive Board Registration

  16. Agency Entity Project Design and Formulation Project participants (EB&COP/MOP) Designated Operational Entity (DOE) Approval/ Registration Designated Operational Entity (DOE) Executive Board (EB) CDM National Authority (CNA) Project participants Monitoring Designated Operational Entity (DOE) Validation/ Certification Issuance of Certified Emission Reductions (CERs) Executive Board (EB) Certified Emission Reduction CDM project cycle

  17. CDM Project Criteria 1. Exclusive criteria First criteria for screening, selecting possible CDM were developed including: a/ Sustainability b/ Additionality c/ Feasibility

  18. 2. Priority Criteria

  19. 2. Priority Criteria

  20. Potential CDM projects under consideration Under consideration

  21. Preliminary portfolio of CDM project

  22. Primary portfolio of CDM project (cont’.)

  23. Experiences from CNA • Strengthening cooperation between CNA and related ministries to facilitate CDM activities. • Process quickly work related to CDM but keep within the existing law • Obtain maximum possible benefit from participation in the CDM market • Accord with Kyoto Protocol and domestic circumstance

  24. Next CDM activities in Viet Nam • Enhance CDM project development skills (project design, documentation, negotiation) for project developers, stakeholders. • Improve capacity and skills for CNA (DNA) staffs and CNECB members. • Develop and implement CDM projects. • Integrate CDM issues into local and national development strategies, plans. • Participate in the international and regional conferences, workshops to learn and share experiences from other countries.

  25. CD4CDM Project Office57 Nguyen Du, Ha Noi, Viet NamTel: 844 8228974 - Fax: 844 8263847 Email: vnccoffice@fpt.vn

  26. Thank you very muchfor your attention

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