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Overview of public expenditure for climate change in Viet Nam

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High-level inter-ministerial workshop held in Hanoi June 6-7, 2017 hosted by the Ministry of Agricultural Development (MARD) of Viet Nam and supported under the Integrating Agriculture in National Adaptation Plans (NAP-Ag) Programme. The meeting was attended by over 75 national and provincial level government officials, including MONRE, MARD, MPI and the Ministry of Finance (MOF), UN and development partners, private sector representatives including insurance companies, as well as non-governmental organisations.

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Overview of public expenditure for climate change in Viet Nam

  1. 1. OVERVIEW OF PUBLIC EXPENDITURE FOR CLIMATE CHANGE IN VIET NAM Department of Public Expenditure, Ministry of Finance
  2. 2. CONTENT • Policy summary • Budget allocation • Achievements • Limitations • Plan for 2016-2020 • Main tasks and solutions in the future
  3. 3. POLICY SUMMARY Climate change receives high attention from the Party and the Government through the issuance of numerous policies, mechanisms and focus on implementation • 7th Session of the 11th Central Committee of the Communist Party of Viet Nam passed Resolution No.24-NQ/TW on proactive response to climate change, enhanced natural resource management and environmental protection. • In 2014, the Government issued Resolution No.08/NQ-CP on the Plan of Action for the implementation of Resolution No.24-NQ/TW. • Decisions by the Prime Minister: – Issuance of National Strategy on Climate Change (Decision No.2139/QD-TTg dated 5/12/2011) – Issuance of National Action Plan on Climate Change from 2012 – 2020 (Decision No.1474/QD-TTg dated 5/10/2012) – Issuance of National Target Program to Respond to Climate Change (Decision No.158/2008/QD-TTg dated 02/12/2008; Decision No.1183/QD-TTg dated 30/8/2012) • The Standing Committee of the National Assembly, issued Resolution No.853/NQ- UBTVQH13 dated 05/12/2014 on the monitoring results and enhancing policy, legislation implementation for climate change response in the Mekong Delta
  4. 4. BUDGET ALLOCATION Budget for the National Target Program to Respond to Climate Change from 2012 – 2015 (Decision No.1183/QD-TTg dated 30/8/2012 by the Prime Minister) - Total Program budget: 1,771 billion VND - Sources of funding: + Central budget: 770 billion VND + Local budget and other sources: 153 billion VND + External funding: 848 billion VND
  5. 5. ACHIEVEMENTS • Objective 1: Assessing the levels of climate change, sea level rise, continuing to update climate change and sea level rise scenerios with detailed scale to local level. - Developed climate change and sea level rise scenarios to be used for the policy making in general and the climate planning in particular at all levels. • Objective 2: Established databases on climate change, sea level rise; assessing climate change impacts to facilitate the socio-economic development planning in the context of climate change and sea level rise in Viet Nam. - Formulated and issued National Action Plan on Climate Change from 2012 - 2020 - So far, 10/10 Ministries and 63/63 provinces have issued Action Plans to respond to climate change and sea level rise. - Some Ministries and agencies have actively studied how to integrate climate change into the sector planning and socio-economic development plans.
  6. 6. ACHIEVEMENTS (cont.) • Objective 3: Carrying out some key contents in the action plans to respond to climate change at some Ministries, agencies and provinces. - The Ministries and agencies have focused on studying, implementing some key, highly priority tasks to respond to and mitigate the impacts of climate change on the respective Ministries’ areas of responsibility. - Some specific achievements by the Ministries and agencies: + MONRE: Formulated the Mekong Delta Plan; developed model of disaster resilient communities under the conditions of climate change (pilot implementation in 2 provinces of Ha Tinh and Quang Binh).... + MOIT: Developed measures for GHG control; review, develop the list of strategies and plans for industries which are vulnerable to climate change… + MARD: Developed policy to support the transformation of crop structure under climate change; the model of coastal aquaculture to respond to climate change... + MOC: Reviewed, revised and amended Vietnamese regulations and standards on urban technical infrastructure to respond to climate change; Developed plan for implementing the Key Economic Zones Planning with considerations of climate change factors + Provinces: Quang Nam province completed and brought into use 10 pilot constructive works to respond to climate change; Ben Tre province completed and brought into use 10 pilot models of climate change adaptation...
  7. 7. LIMITATIONS • Social awareness of climate change is still limited; many organisations, businesses, people do not have proper knowledge about climate change and green growth. • The links between growth promotion and climate change response have not been harmonized; in many cases, attention is on economic growth or short term income growth, without due considerations of requirements for climate change response, green growth for long term sustainable development. • Climate change requires interdisciplinary and inter-regional approaches. However, the collaboration among the Ministries, agencies and provinces is still limited. • Climate change response is an enormous, longlasting and difficult task, requiring time to study, experiment to select appropriate solutions and mobilise resources for their implementation. • Implementation requires large investment, but the budget is restricted. Policies to mobilise resources from domestic and foreign individuals, businesses have not been really effective; coordination and management mechanisms still have shortfalls. • Human capital for climate change response and green growth has not met the requirements in both quantity and quality.
  8. 8. EXPECTATIONS FOR 2016-2020 • The Government has submitted to the National Assembly Standing Committee to issue the principles, criteria and cost norms for state budget allocation for capital expenditures from 2016 – 2020 (Resolution No. 1023/NQ-UBTVQH13 dated 28/8/2015) – From 2016 - 2020 there is no more NTP on Climate Change; it will be replaced by Target Program for Climate Change Response and Green Growth • Climate Change Response and Green Growth is 1 of the 21 NTPs from 2016 – 2020 (ResolutionNo.73/NQ-CP dated 26/8/2016). – The Program budget comes from the capital development fund within the Medium-term Public Investment Plan from 2016-2020 (in 2016 about 1,000 billion VND was allocated). + Total Program budget: 15,866 billion VND (of which central budget for capital investment is 470 billion VND; central budget for current expenditures is 396 billion VND; ODA funds 15,000 billion VND). Climate change component: 11,300 billion VND, Green growth component: 4,566 billion VND. – Some climate change response elements are integrated into the sector and provincial strategies and development plans. – The update of climate scenarios, developing pilot models,… are budgeted from the annual current budget of different Ministries, provinces. • MPI and relevant Ministries are collecting opinions and submit to the decision-makers the allocation of public investment capital from 2016-2020 and assignment of specific tasks for implementation.
  9. 9. TASKS AND SOLUTIONS IN THE FUTURE • Harmonising the links between growth promotion and climate change response in each period and each development plan and policy. – Minimising adverse impacts and enhancing climate change response for sustainable development must be considered a crucial task of all sectors and all levels. • Prioritising public investment funds and increasing mibilisation of social resources for the implementation of strategic targets, action plans and target programs for climate change response and green growth. – Urgently complete the identification and approval of priority project list, allocating appropriate budgets and public investment funds from 2016-2020, focusing on drought, river and coastal erosion control in the Mekong Delta, drought control in the Central Highlands and the South Central Coast… – Studying, coming up with proper mechanisms, policies to mobilise domestic and foreign resources, including technical assistance and financial support from international donors. – Performing strict monitoring and inspection of the implementation, ensuring economical, targeted and effective use of the funds; strong punishments against violations. • Strengthening collaboration among Ministries, agencies and provinces in developing and implementing mechanisms, policies on climate change response. • Enhancing communication and information on climate change in the business community and the citizens in the society, ensuring that all people have proper knowledge of the meaning, importance and urgency of climate change.
  10. 10. Thank you very much!

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