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IMPLEMENTATION OF CLEAN DEVELOPMENT MECHANISM IN VIETNAM

Fourth Regional Workshop and Training on Capacity Development for the Clean Development Mechanism. IMPLEMENTATION OF CLEAN DEVELOPMENT MECHANISM IN VIETNAM. Nguyen Khac Hieu International Relations Department Ministry of Natural Resources and Environment. Contents. Overview

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IMPLEMENTATION OF CLEAN DEVELOPMENT MECHANISM IN VIETNAM

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  1. Fourth Regional Workshop and Training on Capacity Development for the Clean Development Mechanism IMPLEMENTATION OF CLEAN DEVELOPMENT MECHANISM IN VIETNAM Nguyen Khac Hieu International Relations Department Ministry of Natural Resources and Environment

  2. Contents • Overview • Major activities • Implement CDM and establish the CNA • CDM project in Vietnam

  3. 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.

  4. 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 (ICD), MONRE is a Executing Agency to coordinate and carry out the project

  5. CNA in Viet Nam • 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

  6. 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.

  7. 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

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

  9. 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)

  10. 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.

  11. 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

  12. + 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

  13. 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

  14. Potential CDM projects Under consideration

  15. Approved CDM Projects • To recover and use associated gas at Rang Dong oil well in Vung Tau • Potential reduction of CO2 emission: 6,74 tons during beneficial period (10 years) • Goal: To recover and use associated gas from the production process in the Rang Dong oil well. In the past associated gas was burned that caused a huge amount of CO2 • 2. Sample project to increase energy efficiency in Thanh Hoa Beer Company • Goal: To completely change the technology in order to save energy for medium-size beer factory in Thanh Hoa. To reduce the emission of greenhouse gas by increasing energy efficiency during production. • Potential reduction of CO2 emission: 100.476 tons CO2

  16. Preliminary portfolio of CDM project

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

  18. Signing Cooperation Agreement between CNA and JBIC for development of projects within the framework of KP MONRE, 29 Mar 2005

  19. 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

  20. Next steps for CDM implementation • Review existing laws and regulations • Develop a suitable legal framework for CDM • Develop and submit a Draft Instructions of Vietnamese Government to implement KP and CDM (completed by Nov. 2005) • Integrate CDM into existing development strategy and programs • Create favorable conditions for foreign investors by approving the amendment and completion of current legal framework to support CDM • Encourage participation of foreign investors in CDM projects • Strengthen and develop relationship among CNA, CNECB and relevant bodies • Advocate for awareness raising • Develop a more transparent and effective system for approving CDM projects • Strengthen capacity for CNA to promote CDM activities in the country

  21. Conclusion • Implementation of CDM projects in Vietnam plays a key role in the sustainable socio-economic development, contribute to the poverty reduction and hunger alleviation and environment protection. • A legal framework for CDM activities is being formed. • Vietnam has created favorable conditions for foreign investors to Vietnam to invest on CDM projects. • Need to establish a CDM Fund to support local CDM activities. • Vietnam has potentials to enter the CDM market.

  22. For further information, please contact:CD4CDM Project Office 57 Nguyen Du, Hanoi, VietnamTel: 844 8228974 - Fax: 844 8263847 Email: vnccoffice@fpt.vnWebsite: www.noccop.org.vn

  23. Thank you for your attentions!

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