BUDGET SUPPORT FOR CLIMATE CHANGE ACTIVITIES (Viet Nam experience)
(ADAPT Asia-Pacific Second Annual Metting, 3-4 June, Nadi, Fiji)
Dr Le Van Minh, Adviser NTP-RCC,
Deputy Coordinator SP-RCC
CC Policy/Regulations
The Kyoto Protocol approved ( Decision no 47/2007): CDM projects implement in Viet nam.
National target Program to respond to CC (NTP-RCC) approved by PM (Decision 158/2008): 1,965 billion VND allocated for CC activities from central, local budget and private sector contributions.
The National Climate change strategy approved by PM (Decision no 2139/2011): multi-century vision, 10 strategic tasks of which 3 are relevant to climate finance :
No 6: Increase the role of Government in climate change response;
No 9: International cooperation and integration to enhance the country’s status in climate change issues;
No 10: Diversification of financial resources and higher effective investment.
The National Green Growth Strategy approved by PM (Decision no 1393/2012).
The National Action Plan on Climate change approved by PM (decision no 1474/2012): 10 target programs, 65 target projects with an implementation duration between 2012 up until 2020.
Climate Finance Institutions
1. National Committee on Climate Change (NCCC):
Established in jan 2012(decision no 43/2012): Coordinate all activities of CC in viet Nam.
Chairman: Prime Minister. Permanent Vice Chairman : Deputy Prime Minister. Vice Chairman: MONRE Minister. NCCC Office: DMHCC - MONRE, serve as NCCC
Secretariat. 19 members, including 12 Ministers and head of
Science, Technology, and Social Academy, Reaserching instutions concerning climate change issues.
Climate Finance Institutions (Cont.)
2. Vietnam Environment Protection Fund (VEPF):
Established : 2002.
Major sources of capital: state budget, environmental protection fees for waste water, exhaust gas, solid waste, mineral exploitation, certifield Greenhouse Emission Reduction(CER) sale charges from CDM projects and other sources in compliance with the law.
Types financing conducted: Providing loans at preferential interest rates, support for emergency activities relating to environmental pollution, environmental disaster,…
3. ODA that support infrastructure development and disaster risk management.
Support Program to Respond to Climate Change (SP-RCC)
Established in 2009.
Objectives:
(1) Development and implementation of CC policies and institutional framework related to climate change;
(2) Serve as a flatform:
Aid harmonization.
Climate change policy dialogue.
Climate change project priority and formulation.
SP-RCC Activies
Mitigation:
Energy efficiency: MOIT, MOT, MOC - (JICA).
Renewable energy: MOIT - (AFD).
Waste management : MOC, MONRE - (JICA).
Agriculture : MARD - (CIDA).
Forestry : MARD - (JICA).
SP-RCC Activies (Cont.)
Adaptation:
Water Resource Management: MONRE, MARD - (WB).
Integrated Costal Management: MONRE, MARD - (AusAID, GIZ).
Natural Resources - Biodiversity : MONRE, MARD - (JICA).
Transport and Construction: MOT, MOC - (JICA).
Health : MOH - (JICA).
Agriculture: MARD - (CIDA).
SP-RCC Activies (Cont.)
Cross- Cutting Issues:
Mainstreaming CC issues: MPI, MONRE - (WB).
Financial Mechanism: MOF, MPI, MONRE - (JICA).
Awareness Raising: MOET, MONRE - (JICA).
SP-RCC Co-Finaciers Support
2010 2011 2012
For 2009 cycle For 2010 cycle For 2011 cycle
JICA JICA JICA
AFD AFD AFD
CIDA CIDA
WB WB
AusAID
Korea-EXIMBANK
140 Mil. $ 220 Mil. $ 300 Mil. $
SP-RCC Financial Mechanism
The fund channelling for SP-RCC need to follow the State Budget Law (2003) and ODA regulation (Decision no 131/2006 replaced by No.38/2013 of the Prime Minister);
The Criteria for climate change projects selection (Decision no 1719/2011);
Inter-ministerial Circular on guiding the management and expenditures of SP-RCC fund (MONRE, MPI, MOF no 03/2013);
SP-RCC Financial Mechanism (Cont.)
Financial mechanism and policy on CDM (decision no 130/2007): MONRE is the Designated National Authority.
Inter-ministerial circular on guiding the management and expenditures from state budget in implementing NTP-RCC(Decision no 07/2010); MONRE, MOF, MPI.
SP-RCC Funds Channelling
Ministries
Provinces
Inter-
Ministrial Council
MPI
MOF
Central Budget
SP-RCC
State Budget (Central and Provicial)
ODA
Other Income/ Revenue Funds Allocation for Projects Implementation
Evaluate/Select Projects based on Criteria
No.1719/2011
Priorities
To develop long term and medium term financial plans in climate action plans to ensure the implementation of climate change response activities.
Leverage domestic funds from all sources: Private sector, Civil society Organization, NGOs, local government (Provincial and District level).
Maximize international financial support through the implementation of climate change projects and programs.
Enhance the capacity to access and administer international funds for climate change.
Priorities (Cont.)
Efficient and coherent alignment of national and international climate finance.
Enhance capacity to access and administer international funds for climate change, (the criteria and registration process for the Green Climate Fund and the Adaptation Fund, good governance, transparency, accountability).
Promote national budget uptake for disaster and climate change.
