Vietnam

Vietnam: Key Resources

Documents
Market Readiness Proposal (October 2014)

Presentations
Most recent: Market Readiness Proposal Final Presentation (October 2014)
Market Readiness Proposal Draft Presentation (May 2014)

Design, develop, and pilot a market-based instrument in the steel sector; design no-regret measures in solid waste sector with analysis of potential market-based instruments.

Country Information

National Context

Vietnam has set priorities for climate change mitigation in its national charter on environment, Strategic Orientation for Sustainable Development (SD), National Climate Change Strategy (NCCS) and (Draft) Green Growth Strategy (GGS).

Vietnam has ambitious laws and action programs for energy efficiency and the large-scale development of renewable energy sources. The mid to long-term objectives of these are to bring the share of renewable energy to 4.5% in 2020 and to 6.0% in 2030 and reduce average energy elasticity ratio of 1.5 by 2015 and 1 by 2020. [Power Master plan VII].

Vietnam is developing a Green Growth Strategy with following targets:

  • To reduce energy consumption per unit of GDP by 2.5-3%per year to 2020 and reduce GHG emissions relative to its business-as-usual (BAU) scenario by 2-3 % per year from 2020 to 2030.
  • To reduce GHG emissions in the energy sector by 10% -15% by 2020 relative to 2010 level.

Source: PMR Organizing Framework submitted by the Ministry of Planning and Investment of Vietnam, May 11, 2012

Key Policies:

  • NTP-RCC/SP-RCC 2008-2015: National Target Program to Respond to Climate Change and the Support Program to Respond to Climate Change
    • Implemented through action plans by ministries and localities and coordinated by MONRE
  • Regulations related to market based mechanisms
    • CDM (GoV decision No 130/2007/QD-TTg, dated 02 Aug 2007 )
    • PES is legalized (MARD Decree No. 99 on the Policy for Payment for Forest Environmental Services /2010).
  • National Forest Development Strategy 2006-2020
    • Increase forest cover to 42% of land surface
    • Improve quality of forest through reforestation/aforestation programs
  • Energy efficiency law and NTP (No. 50/2010/QH12)
    • Expected energy saving from 5% to 8% in period 2011 - 2015 (BAU).
  • VII Power master Plan (GoV decision No. 1208/QD-TTg, dated 21 Jul 2011 on approval of national electricity development planning period 2011-2030)

Priorities in renewable energy (RE) development:

  • Increase of RE to 4.5% and 6.0% in 2020 and 2030, respectively
    • Wind power share: 0.7% in 2020, and 2.4% in 2030
    • Biomass electricity: 0.6 % in 2020, and 1.1% in 2030
    • Hydro Power plants: doubling of capacity (17,400 MW) in 2020
    • Nuclear power: 10.1% in 2030
  • Decrease of energy elasticity from 1.5 in 2015 to 1 in 2020

Source: PMR Organizing Framework submitted by the Ministry of Planning and Investment of Vietnam, May 11, 2012

Market-based Approach

Ministry of Natural Resource and Environment (MONRE) is responsible for amongst other climate change policies and GHG monitoring and is developing guidelines and mechanisms especially on MRV.

Vietnam has a significant portfolio of international assistance that can complement the PMR program including GHG emissions registry for key emissions sources funded by NFD/ADB.

The PMR will support Vietnam to:

  • Design and pilot market instruments in the steel, solid waste, and power (EE) sectors; and
  • Establish a GHG registry and MRV system.

Source: PMR Organizing Framework submitted by the Ministry of Planning and Investment of Vietnam, May 11, 2012

  • Phase 1: 2013-2018 Establish legal frameworks and a pilot market based instruments in selected sectors/regions
    • Study and propose the required legal framework to implement selected MBIs;
    • Set up Institutions required to ensure the success of pilot MBIs;
    • Creation and testing of institutional, technical and regulatory instruments and feed back for further refinement of MBIs.
  • Phase 2: 2018-2020 Establishment of a domestic carbon market instrument and connection to international market
    • Broaden coverage of MBIs, ideally to achieve a comprehensive carbon pricing scheme;
    • Integration with the international market.

Source: PMR Organizing Framework submitted by the Ministry of Planning and Investment of Vietnam, May 11, 2012

Focal Point

Ministry of Natural Resources and Environment of Viet Nam (MONRE) is tasked to develop an assignment on management of GHG emission and carbon credit trading to international markets focusing on:

  • Review and formulate the national policy and institution for management of GHG emission and carbon credit trading to international markets;
  • Develop a National GHG inventory system and emission baseline scenario;
  • Develop methodologies for calculation of total GHG emission reduction;
  • Enhance Carbon market awareness and capacity building.

News

Institute of Meteorology, Hydrology and Environment organized a review conference on ‘Strengthening the national capacity to respond to climate change in Vietnam with a view to mitigating the impacts and the control of greenhouse gas emissions’ (Capacity Building for Climate Change project - CBCC) in Hanoi on September 23.

The Ministry of Natural Resources and Environment has organized the first meeting of Joint Commission for the implementation of general credit mechanism (JCM) in Hanoi on September 18, 2013.

More news from the Ministry of Natural Resources and Environment is available here.  

Documents & Presentations

Other documents

International Partners

  • UNDP:
    • CBCC-MONRE/MARD (capacity building for mitigation actions),
    • SD and CP(MPI)–(climate change in the planning system),
    • UN REDD and support for provincial (3)/sectoral (3) NAMA development.
  • World Bank:
    • Low Carbon Growth Study
    • GEF on Energy Efficiency
    • Carbon Finance Program
    • Low Carbon Transport Studies and Investment Program planned for Danang and HCMC
  • ADB: several projects focusing on Carbon Capturing and Storage, municipal and sectoral NAMAs development (as part of NTP-RCC actions plans), HCMH-Metro rail system.
  • CTF (Clean Technology Fund): Viet Nam has received a 250 mil. USD soft loan, targeting to improve energy efficiency and reduce GHG emission in power and transport sector.
  • JICA: Facilitates the establishment of a GHG emission inventory system, support for NAMA development and various other capacity building activities.

Disclaimer: The World Bank does not guarantee the comprehensiveness and accuracy of the data and information included in the Market Readiness Proposal (MRP) and in presentations submitted by PMR participants. Further, the World Bank accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in the MRPs or on this website do not imply on the part of the World Bank any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.