The document discusses Vietnam's strategies for tracking international climate-related finance and outlines the Vietnam Green Growth Strategy (VGGS), which aims to promote low-carbon growth and sustainable economic development. It details investment needs, ongoing projects, and emission reduction targets while stressing the importance of climate finance in achieving these objectives. The report also highlights the need for improved institutional frameworks and tracking mechanisms to enhance access to climate finance and align it with national policies.

1. VIETNAM MINISTRY OF PLANNING AND
INVESTMENT
Paris, 19 May, 2015
Tracking international climate-related
finance in Vietnam
Ma. Nguyen Thi Dieu Trinh, Senior Official
Department of Science, Education, Natural Resources and
Environment,
Vietnam Ministry of Planning and Investment

2. Outline:
•Background: VGGS and GGAP
•Demand for Climate Finance
•Efforts in tracking resources for CC and GG
•Recommendations

3. INVESTMENT NEEDS FOR CLIMAGE CHANGE
•Over the past decade, climate
related disasters (particularly
storms and floods) have caused
an annual average cost in
damages of 2-6 percent of GDP.
•Viet Nam’s rate of emissions
growth currently outstrips that
of its GDP growth and
committed to reduce the
emissions.

4. Vietnam Green Growth Strategy
• Green Growth Strategy in Viet Nam: A strategy to
promote the process of restructuring and improving
economic institutions towards more efficient use of
natural resources, improved competitiveness of the
economy which will be achieved through increased
investments in technological innovation, natural
capital and economic instruments. This will
contribute to respond to climate change, reducing
poverty and ensuring sustainable economic
development.

5. Vietnam Green Growth Strategy
• Strategic Task 1 of Low Carbon Growth: by 2020
to reduce voluntarily the intensity of greenhouse
gas emissions by 8-10% as compared to the 2010
level and 20% with additional international
support;
• Strategic Task 2: Greening Production with the
aim to encourage the development of green
industry and green agriculture based on
environmentally friendly structures, technologies
and equipment;
• Strategic 3: the Greening of Lifestyles and
promoting sustainable consumption.

6. VGGS Action Plan
Total: 12 task groups with 66 activities dealing
with several aspects:
- Institutional arrangements
- Revision of Master plans
- Technological transfer
- Business promotion of enterprise development
- Financial arrangements

7. DEMAND FOR GREEN/CLIMATE FINANCE
Sub-sector
No. of
options
Total capital
cost (mil.
US$)
Total annual
CO2 emission
saved
(MtCO2)
Average MAC
(US$/ton
CO2)
Building 3 3.33 0.17 -69.46
Construction materials 1 17.54 0.49 -14.39
Cement 3 725.00 2.61 -45.27
Textile 2 0.00 0.08 -60.28
Household 10 2,279.19 16.54 -32.32
Pulp and paper 2 0.00 0.19 -93.46
Electricity Generation 10 27,625.00 61.37 16.11
Iron and steel 3 79.50 0.22 -44.60
Road transportation 1 0.00 3.45 0.00
Total 35 30,729.56 85.12
List of GHG emission options and the result of MACC, 2020 (discount rate = 12%)

8. Situation of climate finance

9. Efforts in tracking Climate Finance
Conduct a Climate Public Expenditure and Institutional
Review to assess current climate costs and
development investment guidelines
Develop the Vietnam version of the Climate Option
Framework to increase access to climate change.
Do mapping exercises
Rio markers pilot at some provinces
MPI lead national efforts to mobilized
Green Growth and Climate Financing.
development partner input.

10. 10
Data Analysis
(Different
Sources)
Gaps!!!
Categorizing
Projects
/Programs
Overview of mapping exercise

11. 11
Key information
 152 on-going projects/programs in
line with 21 ACTIONS in the VGGAP
 26 on-going projects/programs
contributing to 5 PRIORITIZED
ACTIONS out of 23 in the VGGAP
 45 ACTIONS remained blank
 57 projects/programs on of 152 are
not directly in line with VGGAP
ACTIONS (Code Z)

12. Climate Public Expenditure & Investment Review:
Objectives:
1. Review the state of spending on climate change / green growth (CC / GG) under the
national budget, including alignment with Government priorities and policies such as Green
Growth Strategy, National Action Plan on Climate Change.
2. Assess options for tracking climate change / green growth expenditures (direct and
indirect) in the budget against existing national policy frameworks, and in reference to
international standard typologies.
3. Develop analytical framework to assess trends in climate change / green growth
expenditure through selected channels and over a selected period.
4. Address institutional gaps at national and local levels and recommend steps to integrate
climate change / green growth objectives in government planning, budgeting, monitoring and
review processes.
5. Strengthen climate finance architecture to help improve existing capacity, systems, and
fiduciary procedures to: a) improve access to sources of international climate finance, b)
strengthen harmonization of policies, and targets, c) scale up impact on the ground of climate
change mitigation and adaptation programming.

13. SOURCES OF CLIMATE FINANCE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MARD MOC MOIT MONRE MOT NTPEE NTPRCC
ODA Domestic
Of the total, domestic sources accounted for 64%

14. ODA & CLIMATE FINANCE
21-
May
-
201
5

15. CLIMATE FINANCE NEEDS TO
BE LINK TO POLICY
Technical Services
Government
To be defined
Government agencies,
private sector,
academia and
indigenous groups
Umbrella fund
Steering
committee (SC)
reviews and
approves projects
Secretariat
Forwards project
concept notes for
review & approval to SC
Beneficiaries/
implementing entities
Private sector
Public sector
Communities and States
Disburse
funding
after approval
of SC
Letter of
approval
Submit
concept notes
Tax incentives
Loan,
Grant funding,
guarantees
Technical
assistance
Technical committee
for different windows:
Incentives/
financial
mechanism
RE/RE Adaptation Conservation
Trustee (TBD)
Ensures transparency
and accountability,
releases funding
Capitalisation (hybrid)
National: Polluter-pay principle
Voluntary carbon certificates
Payment for ecosystem services
International: bilateral,
multilateral

16. 16
Thank you for attention!