Post on 22-Apr-2015
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Trung t©m Nghiªn cøu & Ph¸t triÓn HÖ thèng N«ng nghiÖpCentre for Agrarian Systems Research & Development
Institutional options for agricultural mitigation in
Vietnam
PhD. Dao The Anh, Nguyen Ngoc Mai, Tran Van Toan
Hanoi, 3 May 2010
Agriculture mitigation and institutions for carbon market acces
Clean Development Mechanism (CDM) Voluntary carbon market (VCM)
Overview of Clean Development Mechanism (CDM) in Vietnam
The CDM has yet to gain real traction in Vietnam or deliver poverty reduction: 85 projects, but only 5 formally registered and only 1 having direct poverty reduction benefits (Cao Phong Reforestation Project)
Potential sub-sectors for CDM projects are identified Energy efficiency, conservation and saving Fuel switching Methane recovery and utilization from waste disposal sites and
coal mining Application of renewable energy Associated gas recovery and utilization Afforestation and reforestation Reduction of methane emissions from agriculture and livestock,
utilization of biogas
Legal context and Institution of CDM
Legal doc for implementation of CDM in VN: The Investment Law (Law No.59/2005/QH11), Directive 35 (October 2005), Decision 130 (August 2007) and Circular 58 (July 2008)
In May 2008, the Department of Meteorology, Hydrology and Climate Change of MONRE took over as DNA
The Department of Meteorology, Hydrology and Climate Change also serves as a National Focal Agency for managing and coordinating the implementation of all climate change related activities under UNFCCC and Kyoto Protocol in Vietnam
Legal context and Institutions of CDM
The Vietnam Environment Protection fund is responsible for registration of certified CERs; supervision and management of CERs granted by the CDM Executive Board to CDM projects in Vietnam; and collection of fees from CERs being sold.
There are no local Designated Operating Entities in Vietnam. There are some consultants working with Vietnamese organisations that are involved with validating CDM projects, but these projects are ultimately being evaluated by foreign DOEs.
Structure of Cao phong CDM project
District Administration
Forest development fund
Intermediares:JICAVFUForest Science InstituteDistrict extension center
Honda Vietnam
Households
Benefits
Carbon Wood
50
50
100
0
Relation flows
Financial flows
Lessons learned from Cao phong
Village regulation for forest management is developed by farmers, but lack of enforcement and monitoring
The Forest Development Fund (FDF) lacks farmer participation in management; the top-down approach further questions sustainability of the FDF
Lack of environnement staff at local level Farmers lack understanding of CER and their rights: lack of
capacity building Farmer only interested in economic (wood) benefit for poverty
reduction and not in environemental (carbon) benefits: lack of awarenss
Long project intervention: more than 8 years (acacia trees)
Voluntary carbon market institutions in Vietnam
No VCM in Vietnam at present VCM is not mentioned in existing legal documents, only listed
in the National CC Objective Program; potential difficulties for licensing authority unless MONRE proposes to revise and add some articles in the related legal documents
There are many similarities between the approval procedures for CDM and voluntary projects, but maybe simpler procedures outside MONRE can be used
Potential for agriculture mitigation is large because of high intensification levels of existing farming system
Potential for poverty reduction focus at smaller scale But who are the buyers? Who are the certificators? Currently
limited awareness Donors should play catalyzing role for VCM development
VCM: Challenges for agricultural activities
Aggregation of small scale and dispersed production geographically, but shorter cycle than forest
Non homogenous agricultural practices among farmers
Need effective local institutiosn for controlling emissions and chemical usage
VER accreditation appears more complex than CDM VER is not recorgnized officialy like CDM, thus
potential to combine with value chain or PES activities
Need action-research for institutions combining diverse stakeholders
Existing value chain institutional arrangement
Farmer association based on collaborative groups - supermarket:s collective cultural practices and internal quality control
Farmer groups – processing entreprises (contract farming)
Need to study arrangements between aggregation organisation and carbon buyer
Institutional model for carbon market access of small-holders
Supermarket, Distributor
Group
ASSOCIATION
Supply
- Production- Service provided to members
Group
Group
Carbon producers
Carbon aggregators
Carbon buyers
Institutional criteria for pilot study
Existing farmer organisation for a large area due to short time
Relative specialisation in one agricultural product and homogenous cropping practices
Good market acces Diversity of agro-ecological condition: 01 in
rice land and 01 in sloping land
Concluding remarks
Agricultural mitigation has potential in Vietnam Requires supportive legislative and policy
framework Need to conduct action-research on
institutional options for VCM in Vietnam focusing on smallholder access
Capacity building is in large demand Need a long intervention project integrated in
IFAD activities
Thank you for your attention!