Presentation CDM in VN

Project Review Meeting Vienna, Austria 7-8 November 2005 IMPLEMENTATION OF CLEAN DEVELOPMENT MECHANISM IN VIETNAM Nguyen Khac Hieu Vietnam DNA - International Relations Department Ministry of Natural Resources and Environment Contents Overview Implement CDM and establish the DNA, CNECB Criteria for CDM Projects Potential CDM projects Medium-term CDM plan of Vietnam Next steps for CDM Overview Vietnam ratified UNFCCC on 16 November 1994 Kyoto Protocol (KP): signed on 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 CD4CDM Project has been carried out since 2003 in Vietnam DNA in Viet Nam Establishment International Cooperation Department, MONRE Foundation: - Official Document No 502/BTNMT-HTQT dated 24 March 2003 - Promulgating CNA of Vietnam at COP of UNFCCC, Milano, Italy, 12/2003 DNA in Viet Nam (Cont.) 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 evaluation 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 a 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 DNA 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: establishment of CDM National Executive and Consultative Board and, prior investment fields and issues for CDM projects in Vietnam in the next period CNECB in Viet Nam Establishment ƒDecision No 553/QD-BTNMT dated 29 April 2003 ƒDecision No 813/QD-BTNMT dated 08 July 2004 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) 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: times (in January, April and August) CDM’s Institutional Arrangement Ministry of Natural Resources and Environment CDM National Executive and Consultative Board International Cooperation Department - CDM National Authority - EB Project Developers CDM Secretariat (NOCCOP) Consultation Energy Technical Expert Group Non-Enegy Technical Expert Group 10 Main Criteria for CDM projects assessment (cont.) Exclusive criteria Feasibility: ¾Support of the Government shall be secured ¾Monitoring methodology and performance shall be clearly described 18 Priority criteria for CDM Project in viet nam Category Criterion content A-Sustainability Economic Sustainability National Income Generation -Growth of national income -CER revenues Economic Externalities -Technology transfer -Import Substitution Environmental GHG Sustainability Non GHG Air Pollution Social and Institutional Sustainability - GHG emission reduction -Non GHG Air Pollution emission - Non GHG water pollution Waste - Waste generation rate Ecosystem -% Poverty eradication -Creation of rural employment -Reduction in number of poor households Quality of life -People in come - Improving of living conditions Readiness of implementing agencies -Public change in forest cover -Soil erosion -Likely effect on biodiversity sector -Private sector 19 Priority criteria for CDM Project in viet nam Category Criterion content BInternational Demand Commer cial Viability Attractiveness to investors CGet strong support from the Feasibility Government and be more attractive for investors Having adequate infrastructure and manpower 20 Approved CDM Projects To recover and use associated gas at Rang Dong oil well in Vung Tau Sample project to increase energy efficiency in Thanh Hoa Beer Company Ngoi Duong Hydro Power Project Song Con Hydro Power Project 21 Endorsement letters for CDM PIN Landfill sites in Ho Chi Minh, Ha Noi, Vinh cities Bio-Diesel Fuel switching for transport vihicles Wind power 22 Preliminary portfolio of CDM project No Name of project Developer Capacity Expected GHG reduction (KT CO2) Electricity of Vietnam (EVN) 440 MW 378/y QuangTri Electricity Company 20 MW 129/y ORMAT private 50 MW 310/y Upgrading existing coal fired thermal of Pha Lai power plant Wind power plant in Quang Tri Province Geothermal power plant in QuangNgai Province Dak Pone hydro power RCEE 14 MW 40/y Cogeneration for PhongKhe paper village RCEE 6.4 MW 74/y Rice husk power plant in Tien Giang Area Institute of Energy MW 56/y 23 Primary portfolio of CDM project (cont’.) Developer Capacity Expected GHG reduction (KT CO2) Improvement of oil fired boilers in DongNai pulp and paper factory DongNai paper factory 25,000 t paper/y 4.3/y Improvement of energy efficiency in SongDa cement factory SongDa cement factory 85,000 t/y 18.2/y Efficiency of public lighting system in big city Institute of Material Science 100,000 units 190/y 10 Advanced sedimentary brick kiln in BacNinh province Institute of Thermal Engineering 400 mill.pieces/y 49/y 11 Reforestation of newly allocated land in ALuoi district SNV Farmer Union of ALuoi 3,000 28/y No Name of project 24 Medium-term CDM plan of Viet Nam Phase (2005 – 2006): Pilot and consolidation I Objectives 1) Framework for CDM is fully developed and operational 2) Two to four core institutions for CDM project development are functional 3) Ten CDM projects have been approved and are ready for implementation II Action Plan: 1) To support the Government of Vietnam to finalize the CDM framework 2) To support the development of Vietnamese “CDMdrivers” by developing a number of demonstration 25 projects Medium-term CDM plan of Viet Nam Phase (2007 – 2008): Large scale implementation: Integration of policies and broadening of sectoral scope I Objectives: 1) Integrate CDM as a policy option in relevant sector analysis and policies 2) Reduce transaction and management costs by 3) Broad mobilization of stakeholders II Action Plan: To support to broaden the implementation of CDM, it will focus on Government sector and aim to: - Provide training on the inclusion of CDM in broad planning and policy analysis activities in relevant sector - Reduce transaction costs - Train a large pool of new possible CDM project developers 26 Conducting Press Conference on KP and CDM (Ha Noi, 11 March 2005) 27 Signing Cooperation Agreement between CNA and JBIC for development of projects within the framework of KP MONRE, 29 Mar 2005 28 Next steps for CDM implementation Review existing laws and regulations Develop a suitable legal framework for CDM Carry out the Instructions of Vietnamese Government (No 35/2005/CT-TTg issued on 17 Oct.2005) to implement KP and CDM 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 DNA, CNECB and relevant bodies Advocate for awareness raising Develop a more transparent and effective system for approving CDM projects Strengthen capacity for DNA to promote CDM activities in the country Develop and sign MoU / Agreement on CDM with international organizations / Annex I Countries 29 Experiences from DNA 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 Encourage private sector and NGOs taking part in CDM Accord with Kyoto Protocol and domestic circumstance 30 Conclusion ƒ ƒ ƒ ƒ ƒ Implementation of CDM projects in Vietnam plays a key role in the sustainable 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 31 For further information, please contact: International Cooperation Department, MONRE 83 Nguyen Chi Thanh, Hanoi, Vietnam Email: vnccoffice@fpt.vn Website: www.noccop.org.vn Thank you for your attention! 32 ... Managing and co-ordinating CDM activities and investment in Viet Nam DNA in Viet Nam (Cont.) Documents regarding guideline for CDM activities: a Document No 465/BTNMT-HTQT dated 2/3/2003 regarding... 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... Document (PDD) of CDM projects to the Minister of MONRE for issuing a formal letter of endorsement or a letter of approval respectively Providing CDM information to interested investors, related