Sustainable Development-Climate Planning II
SUSTAIN-GREEN (Strengthen and Utilize Sustainable development and planning Institutions towards New climate finance and Green Economic and Economic National action)
Details
Budget:4,555 million USD
OPF relevant objectives:OPF 1.3.1.1/1.3.1.4/1.3.4.1/1.3.4.6
PeriodJan 1 2012-Dec 31 2016
PartnerMPI (DSENRE/CC taskforce/GETS facility) and MoF
- Development issue to be addressed.
Viet Nam has committed to develop a Green Economy/low carbon strategy. MPI has been mandated by the Prime Minister (38 TB-CPVP-2011) to develop the strategy and oversee its implementation. While significant assessment work is currently undertaking with regard to the technical and macro economic implications, limited effort and attention has been paid towards developing an enabling framework for implementation Green/low carbon development. Vietnam has already seen significant progress in responding to climate change, reduces emissions through the introduction of an environmental tax and the establishment of a firm and well established sustainable development policy environment.
The development of a green growth/low carbon development framework should ideally be aligned with the wider public finance reform agendas as well with efforts to improve governance. In particular as new climate finance options might provide opportunities for direct access, which requires fiscal prudent management of financial resources. Hence, the need to develop and enhance capacity of national and sub national planning agencies both within MPI as well within line ministries, the Ministry of Finance, Private sector (national) and civil society to enable Viet Nam to plan green growth, deliver efficiently emission reductions and ensure broad based societal support.
This project builds on the Sustainable Development and Climate Planning project which focused on improving mechanisms, knowledge and tools, capacity and coordination for sustainable development (SD), especially on climate change (CC) for policy development, planning and investment in Viet Nam. This project successfully contributes to mainstream climate change in social economic development planning, supports MPI to initiate Green Growth/Low Carbon Development and developed an Information, Education and Communication strategy for MPI.
- Project Goal and Objectives
The project is designed to facilitate Vietnamese institutions with planning and public finance mandates to develop the necessary public administration and finance skills and ability to effectively plan, finance and execute green growth/low carbon development and climate change strategies at national and sub-national level with the involvement of key stakeholders.
The project aims to:
-Establish the necessary planning and financing skills and capacity to successfully mainstream climate change adaptation and green growth/low carbon development within the existing social economic development framework in Vietnam by 2015.
Objectives:
1)Human resources: The human resource capacity of planning and public finance agencies with mandates related to and influencing climate change and green growth are strengthened at national and sub-national level (HR strategy)
- An HR strategy developed and resourced
- IEC strategy is operationalized and executed
- A learning environment is established in which lessons learnt on green development/low carbon and climate change mainstreaming within the local – and sectoral level planning are used to improve policies.
2)Policy: Legislative bodies, Policy makers and planners have gained capacity and access to the latest scientific insights to enable evidence based policy development in support climate change and sustainable development (Green Growth).
- In 2 provinces, local planners communicated local climate change and Green Economy/low carbon plans with People’s councils which has led to mainstreaming of GG in local SEDPs
- 10 evidence based policy papers developed supporting the development of a climate change act/legalization
- Regular meetings organized with the VPCC (Vietnam Panel on Climate Change)
- Draft legal framework for climate change and green growth/low carbon developed
3)Planning: Mainstream climate change in the existing social economic planning policies and regulatory framework.
- 12 new circulars and guidelines issued that effectively enable planners and policy makers to climate proof their development plans and investments
- A budget monitoring system has been established which enable tracking and recording of additional climate change expenses
- A framework to identify climate change related financial needs is developed
4)Investment: A overarching policy framework is established that facilitate coordination and guidance to donors and investors on mainstreaming climate change adaptation and mitigation into existing policies and investments
- The MPI climate change task force has developed an overall investment strategy that actively mobilized market resources
- Based on the SEDP, Green Growth/Low Carbon growth strategy and the Hanoi core statement, a climate change financing framework is established and being implemented
5)Financing: MPI with MOF have established innovative climate financing mechanism supporting the Green Growth Strategy/low carbon and climate change financingstrategies which results in the ability to direct access by National Implementing Entities
- New financing options developed such as trust-funds, NAMA financing plans and others.
- National implementing entities have been identified and can access directly international climate finance
- Key interventions and implementation strategy
The key interventions of this project are presented below:
Ad1) Build upon the National Green Economy strategy and the existing MPI IEC climate change strategy. The IEC strategy and related monitoring framework will be further elaborated. This will be given shape through enhance the scope of the strategy through the development of sectoral and sub national capacity while deepening the emphasis on mainstreaming green growth. This should lead to well defined activities which can be supported by the MPI developed GETS (Green Economic Technical Support)Facility. This activity is an enabling action in which stakeholders affected by the green economy will be engaged. This involves private sector, civil society and elected officials.
Ad 2) This objective is based on the on-going work on evidence based policy development within MPI. This has to be further developed and better integrated in the on-going work. It will require a more demand driven and flexible approach as issues are emerging quickly and information is needed at short notice. Hence, this work will closely linked to the MPI Climate Change task force which will act as main platform which identifies the research needs from a policy perspective and guides the research during implementation.
Ad 3) Building on the work of the SD and CP project, which works on climate change mainstreaming in the SEDP, large scale infrastructure, annual development plan, mainstreaming climate change in the SEA (Strategic Environmental Assessment), institutional climate change assessment of MPI and study in climate change finance modalities, the SUSTAIN GREEN project will deepen these efforts. Key attention will be given to enhance the mainstreaming in budget procedures, monitoring mechanisms and investment prioritization.
Ad 4) Support the development of appropriate policies with emphasis on a financing strategy for the GE/LC strategy and related disbursement mechanism through evidence based policy research and broad GoV engagement in international climate change and sustainable development negotiations. This work will be managed in close collaboration and engagement of the MPI climate change task force.
The aim is to identify key barriers in policy development and implementation and address these through assessing scientific input. One of the issues to be address is the introduction of GHG budgets and mechanism to trade GHG deficits and surpluses between sectors, facilities and provinces.
This will result in the development of circular/decision on Green Economy/low carbon development to guide provinces and sectors to identify climate change impacts and develop Appropriate Mitigation Action as well to adjust their Social Economic Development Plans and assess the financial implication of these changes. One of the key issues will be the development of sectoral and local NAMA, under guidance of MONRE guidelines. These have to fit and being part of the overall GE/LC strategy. Possibly this could be given shape through the development of master plans and provincial “green” SEDP and the related financing strategies. Building on the SD and CP project this will include engagement at sectoral and sub national level to develop appropriate assessment and appraisal mechanism and related circulars. Ultimately this will enable the GoV to set clear and realistic GE/LC targets as well as providing support in conductingrelevant Strategic Environmental Assessments/Sustainability appraisals.
Ad 5) This projectobjective will be directly linked and supports the MPI developed Multi Donor facility for Green Economic development. It aims to enable sectoral and sub national planners, NAMA developers and policy makers to develop high quality and focused requests for additional financial assistance. The project will be supporting and work closely the MPI Climate Change/Green Economy Task Force in addressing capacity building needs it has identified in rolling out the climate change/green economy agenda.
- Innovation approaches/ modality to deliver/implement this program/project:
The Green Economy/Low Carbon Strategy will be a breakthrough in Vietnamese overall economic development. This will require innovative and new approaches to policy development. Key aspects of innovation are
- Develop new financing options to enable the GoV direct access. The project will be closely aligned with the MPI GETS MDTF. The project will develop the necessary awareness and capacity to enable the GOV to effectively readjust its development priorities. This project is embedded in the wider MPI response to climate change and provides key input to address capacity and awareness issues.
- Evidence based policy development. Already the SD and CP project has initiated studies on energy security and cost of climate change to infrastructure. This has to be further developed and deepened through the developing effective media to facilitate communication between planners, policy makers and scientist. Objective 1 and 2 are examples of how is given shape.
The strength of the project is that it has a vertical focus and stresses the links between the national level strategies with provincial level Social Economic Development planning within the framework of Green/Economic Development.
- Partners:
The key partners are:
-MPI (Ministry of Planning and Investment). DSENRE as lead climate change unit and the chair of the MPI CC taskforce will lead the planning and budgetary aspects
-MOF (Ministry of Finance) will lead the financing aspect as well developing capacity for direct access of international climate finance.
-National Assembly committees of Science and Technology, Finance and Ethnic Minorities.
-People Committees
Other stakeholders are beneficiaries to the project and include DPI (Department of Planning and Investment), PCCs, private sector and civil society organizations.
Results Resources Framework
Result / Implementing Partners / Related Projects / Indicators / Baseline / Proposed Target Indicators / Means of Verification / Risks & Assumptions / ODA Indicative Budget (USD)ONE UN
Outcome 3: / Viet Nam has adequate policies and capacities for environmental protection and the rational management of natural resources and cultural heritage for poverty reduction, economic growth, and improving the quality of life
Objective: To improve mechanisms, knowledge and tools, capacity and coordination for sustainable development (SD), especially on climate change (CC) for policy development, planning and investment in Viet Nam /
- Ministry of Planning & Investment (MPI)
- Ministry of Finance (MOF)
- Ministry of Industry & Trade (MOIT)
- Ministry of Natural Resources & Environment (MONRE)
- Select Regional & Provincial Authorities
- Office of Government (OOG)
-UNDP/MONRE/MARD-Capacity Building for Climate Change project
-MARD/UN-REDD Vietnam Program
-MARD/CBDRM-Center for Disaster Management
Activities funded by other donors:
-SEA Capacity Strengthening –Dutch Government
-DANIDA-NTP-RCC support
-SPRCC climate change policy reform (WB, JICA, AFD. CIDA) / MPI has developed a national Green development/low carbon (GD/LC) strategy which is centered on
-Low carbon growth
-Green development measured through green GDP.
-Green employment
Climate change adaptation/DRR has been mainstreamed in the national planning framework
Impacts assessment tools have been developed and used which enable planners to effectively incorporate environmental and climate change aspects
GD is supported by well established sustainable development action plans coordinated effectively by the NCSD / Vietnam has currently developed a NTP-RCC which contains some emphasis on climate change mitigation
Climate change is not mainstreamed yet and prioritization is lacking
SEA results are not relevant for planners due to existing regulations and limited focus of the existing tools
SD and GD/LC framework are not well aligned / GD/LC strategy is developed, financed disseminated and initiated
A climate change adaptation investment prioritization framework is developed
SEA Plus is developed, piloted and mainstreamed in the planning sectors
The GD/LC strategy and SD action plans are integrated and focused on eneration / Strategy document I finished and can be assessed.
CC investment prioritization framework developed based on CC and GD strategy
SEA plus guidelines and pilot reports have been successfully conducted and approach is disseminated / The technical infrastructure to support GD is been established
Innovative finance frameworks are being developed and implemented.
As MPI is focal point for GD and SD which enable the development of synergies between both / 2,700,000
Output 1: GOV agencies implementing agreed mechanism for integrating sustainable development and climate change into national social and economic plans and investment (Improved Mechanisms) /
- MPI/Dept of Science, Education, Natural Resources & Environment (DSENRE)
- MPI/Dept of National Economic Issues (DNEI)
- MPI/Dept of Infrastructure & Urban Centres (DIUC)
- MPI/Dept of Management Planning (DMP)
- MPI/Public Procurement Agency (PPA)
- MPI/Foreign Economic Relations Dept (FERD)
- MPI/Development Strategy Institute (DSI)
- MPI Dept of Supervision and Appraisal
- Provincial DPIs
- SP-RCC mainstreaming component (WB)
-WB VNCLIM (CIEM Green development Assessment)
- JICA/IPS MONRE, / By end of project CC mainstreamed and GD/Low Carbon targets incorporated into national five-year plan and provinces begin to use same indicators to track progress against GD indicator and adaptation indicators
MPI has developed and is rolling out a CC adaptation prioritization methodology (in collaboration with WB).
By end of project a multi-stakeholder endorsed socio-economic development plan has been developed that incorporates status and trends of SD and identifies ways & means to address reductions in GHG emissions and climate resilience/ adaptation in geo-spatial and temporal scales
A climate change/GD task force is been established and support the strategy roll out / Currently new mechanisms are emerging as VN has committed itself to move towards climate resilient development and Green development. However the challenges are significant and capacity needs to be developed / A SD/CC/GD_LC monitoring Decision is released and implemented
CC investment prioritization frame developed and executed.
SEDP 2015-2020 is GD//LC focused/climate resilient. / GD/LC strategy
Circular on investment prioritization drafted
Reports on climate change indicators / Macro-economic difficulties will hamper efforts to allocate resources to CC mainstreaming and GD investments
Institutional perspectives on CC within MPI as well outside continue to mark CC as an environmental and not an development issue which limits scope of policies and investments / 300,000
Activities:
1.1.Support the development and implementation of a Green development/low carbon strategy /
- MPI-GEI plus DSENRE
- FERD
- SP-RCC office
- MOF
- MPI GETS (Green Economic Technical Support Facility) / A Green development/Low carbon strategy is developed which supports Viet Nam to meets its longer term development targets while reducing green house gas emissions, increasing green GDP while generating green employment in social inclusive and gender equal manner. / Currently Vietnam has no Green development/low carbon strategy. The strategy development process will be initiated by a framework (set for August 2011) and finalized early 2011 after which early implementation starts / Strategy documents is drafted and submitted to the government for comments and approval
Implementation and financing mechanism are being put in place
The strategy development is based and supported by evidence based policy research. / Strategy documents
Reports on consultation workshops
Implementation guidelines issued / Limited understanding of GD /LC development limits the scope of the strategy.
The strategy development process is inclusive and involves the use of appropriate impact assessment tools (SEA-plus)
Collaboration between WB and UNDP proves to be difficult as institutional interest over respective roles clash / 150,000
1.2. Develop and support the implementation of an integrated GD/LC monitoring system which is Green accounting and GHG based (GHG data to be delivered by MONRE) /
- MPI-GSO (date collection)
- MPI-DSENRE (user of indicator)
- British Embassy support for green GDP indicator.
- Early UNDP assessments on Green GDP and ecological indicators
- WB WAVES