Translating Viet Nam s INDC into Investment Opportunities

Transcription

1 Workshop of the Asian Regional Group Unpacking (I)NDCs identifying, prioritising, planning and implementing mitigation and adaptation measures Translating Viet Nam s INDC into Investment Opportunities Dr. Tran Thuc Vice Chairman, Vietnam Panel on Climate Change thuc@netnam.vn Ha Noi, July

2 Paris Agreement Open up a huge opportunity for investment. An era of low-carbon investment. Investment in fossil fuel becomes very risky. Reestablished market mechanism becomes a key tool. PA is the foundation for national action in short-term, medium term - actions that can bring immediate benefits for 2015/2030, or long term strategy for 2050 and further. 2

3 3 Translate the Contribution in INDC into investment opportunity 1) Identify effective roadmap. 2) Synergy between GHG mitigation and development. 3) Make proposal more attractive to funders. 4) Attract private sector investment. 5) Support long-term, low carbon development strategies.

4 INDC Conversion National circumstance and political priorities Converted INDC Cost + Benefits (GHG & SD) Target Formally confirmed Policy & Measures Context & priorities Intended target SD goals Financing situation CCAP, 2015 Sectoral objectives Qualitative goals Infrastructure needs Identify options Public finance outlays? Policy tool? Mandate? Sector-specific Cross-cutting Public finance intervention Fiscal outlays Public finance institutions Investment strategy Basis for seeking support and targeting private finance

5 5 Viet Nam s Plan to Prepare for Implementation of PA 1. Objective - Targets up to Targets oriented to Main tasks up to Mitigation Readiness Actions - Adaptation Readiness Actions - Transparency Readiness Actions (CC response and CC support) - Governance Readiness Actions - Financial Readiness Actions 3. Priority Actions up to 2020: (Mitigation, Adaptation, Transparency, Institutional, Financial) 4. Actions Oriented up to 2030

6 (5) Governance (1) Mitigation (2) Adaptation Harmony $ $ $ $ (4) Transparency (MRV) $ $ $ $ (3) Climate Finance 6 Chris Dodwell - Ricardo,

7 Monitoring Transparent MRV system Enhance the capacity of MRV implementation Clear Institutional roles and arrangement Mega data for monitoring at national database Benefit not only CC targets but also development targets. Linkable to development plans/strategies. Attractive for climate actors/donor. Link national reports (data, targets, implementation, plan ) toward the reports to be submitted to UNFCCC. Review existing reports (NC, BUR, INDC ) to address gaps, challenges. Follow international requirements. Harmonize MRV processes for those reports.

8 Establish MRV system Mitigation Operate National GHG inventory system Enhancing capacity on MRV, GHG inventory Develop cooperation mechanism Establish National & Sectoral MRV systems Adaptation Establish MRV system Indicators from INDC (SEDP, SDG on CC, Sendai Framework). Indictors for outcome (vulnerability) and activity monitoring. Link MRV to planning processes. Enable of capacity on planning and MRV at all levels. Select appropriate set of indictors for monitoring Link MRV to planning processes Enable capacity on planning & MRV at all levels Others Improve ICA process Information sharing and coordination Enhance Institutional capacity Develop database for CC

9 Principles for MRV System On the basis of policies and legislation at national level. To ensure consistency, efficiency and conformity: 1) Consistent with socio-economic development through various phases. 2) Match specific state management in each economic sector. 3) Decentralized to and responsibilities of each entity. 4) Government state management authority. 5) Exclusive functions and mandates of line ministries. 6) Functions and mandates of two (or several) ministries and the Government s mechanisms on coordination. 7) Financial conditions, organizations and personnel to ensure the implementation of assigned authority. 8) Mechanisms for monitoring and inspection of the implementation authority.

10 Information for Baseline Development (R) Information for Measurement and Verification (R) & (V) Information and Data Flow for MRV Systems Information on Baseline Development Information on Baseline development (R) Information on Baseline development (R) Approval of National and Sectoral Baseline Methodology to develop/update Baseline (M) Activities in province/sector Achievement in province/sector Methodology to develop/update Baseline (M) Allocate/Propose targets for province/sector Adjust and supplement target for each province /sector (M) & (V) Adjust and supplement target for project (M) & (V) Develop action for province/sector (R) Verification methodology for province/sectors / project (V)

11 Requirements Ensure financial neutrality, simplicity and reduce administrative costs and impact on allocations. Policy consistency and efficiency through a complete MRV system. Creation of new financial resources for adaptation and mitigation. Market solutions and policy tools to support operation of MRV system. Enhance scale and efficiency of future carbon market. Take advantages of private financing. Ensure transparency, efficiency and equity in the use of financial resources. Synthesized demands for financial investment and mobilization.

12 Challenges and Capacity Needs MRV system for mitigation: set up MRV system; GHG inventory system; CC response technologies. More challenges on MRV for adaptation: Lack of guidance on MRV for adaptation. Coordination among institutions. Common appropriate set of indictors applied to sectors, localities. Resources for implementation. Capacity needs: Review and potentially revise INDC. Coordination, information sharing and linkage between ministries. Strengthen cooperation with the international network. Set up MRV system and bring GHG inventory system into operation. Roadmap to implement INDC. Capacity for attracting private and international funding to implement INDC. 12

13 13 Challenges and Capacity Needs Questions: How to bring sectoral target in to obligation? How to make adaptation become contribution? How to develop transparency system along with what already have nowadays? Should MRV be conducted with the financial support from domestic and international or only from domestic?

14 Climate Finance Overall picture of climate investment? Availability of finance Capacity of finance sector Key economy-wide barriers Investment / Financial intervention to meet INDC? Means to mobilize investment? Strategic basis for requesting international support? CCAP, 2015 Financial flow to be transformed Infrastructure needs Estimation of cost Program-level gaps Policy and regulatory actions Role of public expenditure and public finance institutions How private finance to be mobilized How will support drive increased ambition Rationale for type of financing needs Sources targeted Specific program proposal to be pursued 14

15 15 Lessons Learned for Further Actions MRV for NAMA projects On-going development of MRV framework for mitigation actions Experiences on CDM implementation Experiences on developing the INC, SNC, BUR1, ICA and FSV process of BUR1

16 THANK YOU