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GEF - VIET NAM GEF activities and some issues related to CDM capacity development Dr. NGUYEN VAN TAI GEF - Viet Nam Office Overview of GEF • GEF (Global Environment Facility) is a financial mechanism aiming at assisting developing countries and transitional countries in protecting global environment CDM and GEF mechanisms CDM GEF • CDM is a financial mechanism for implementing Tokyo Protocol • The developed countries may use the certified GHG emission reduction accruing from project activities in developing countries to contribute to compliance with part of their quantified GHG emission limitation and reduction commitments under Annex B of the Kyoto Protocol. -GEF is a financial mechanism for implementing UNFCCC and Biodiversity Convention -GEF finances incremental costs for global environment protection Overview of GEF Main sectors supported by GEF 1. Biodiversity 2. Climate Change 3. International Water Resource 4. Ozone layer protection 5. Activities related to land degradation, especially desertification, management of organic substances that are difficult to be decomposed. The GEF Climate Change Operational Programs (OP) : • OP5:Removal of barriers to energy conservation and energy efficiency • OP6: Promoting the utilization of renewable energies • OP7: Reducing the long-term costs of low GHG emitting technologies • OP11: Promoting sustainable transport. GEF funds for Climate Change Sector - From 1991 up to now, through its experiment program operation, GEF provided climate change sector projects with 1.5 billion USD among 4.2 billion USD for all sectors. - GEF mobilized more 5 billion from cosponsors - In 2003, GEF will continue a new phase (2003-2006) with a total amount of more than 2.9 billion USD. Funds proposed by GEF for the period 2003-2006 for Climate Change Sector (unit: million USD) Operational program (OP) OP 5: Energy Efficiency OP 6: Renewable energy OP 7: Low GHG emitting technology OP 11: Sustainable transport Capacity development 2003 2004 2005 2006 Total 26 29 34 35 124 62 70 76 82 290 35 26 27 27 115 19 25 31 36 111 20 20 20 20 80 Funds proposed by GEF for the period 2003-2006 for Climate Change Sector (continued) Operational program 2003 2004 2005 2006 Total Capacity development projects for other multisectors 9 15 19 27 70 Projects for other multisectors 20 22 22 24 90 Methods of shortterm 10 10 12 12 44 Support activities 8 9 9 10 36 209 226 252 273 960 Total: Overview of GEF GEF-Viet Nam National Focal Point Organizational Structure The Ministry of Science, Technology and Environment (MOSTE) is the GEF National Focal Point . • The GEF-Viet Nam Committee consists of representatives from National Environment Agency (MOSTE), Ministry of Planning and Investment, Ministry of Finance, Office of the Government, Ministry of Foreign Affairs, Ministry of Agriculture and Rural Development, National Office for Biodiversity Convention, National Office for Climate Change and Ozone Protection. •The GEF-Viet Nam Office of the GEF-Viet Nam Committee is located at National Environment Agency (MOSTE) Overview of GEF GEF-Viet Nam National Focal Point Function The GEF-Viet Nam Committee has responsibility to assist Minister of the Ministry of Science, Technology and Environment in coordinating environment protection activities related to GEF in Viet Nam GEF Climate Change Projects in Viet Nam. Projects implemented : • UNEP/GEF Project “ Economics of GHG limitationPhase I: Establishment of a methodological framework for climate change mitigation assessment". • UNEP/GEF Project ”Viet Nam: Enabling activities for the preparation of Initial National Communication related to UN Framework Convention on Climate Change “. • These projects have been implemented by Institute of Meteorology and Hydrology, Hydrometeorological Service of Vietnam GEF Climate Change Projects in Viet Nam On going PDF Projects • “ PDF B UNDP/GEF Project: Energy efficiency utilization in the public lighting sector “ implemented by Institute of Material Science. • “ PDF B UNDP/GEF Project : Energy efficiency in Small and Medium scale Enterprises “ implemented by Ministry of Science & Technology. • “ PDF B WB/GEF Project : Renewable energy development “ implemented by Ministry of Industry. • “ PDF B WB/GEF Project :Energy demand-side management and energy efficiency program (DSM) “ implemented by Ministry of Industry. • “ PDF B WB/GEF Project: Geothermal power development” implemented by WB. GEF Climate Change Projects in Vietnam The proposed projects are in preparation • “PDF A UNDP/GEF Project: Methane emission reduction in rice fields “ proposed by Institute of Water Resources. • “UNDP/GEF Project : Energy efficiency improvement in public building “ proposed by Ministry of Construction. Viet Nam National Development Strategy for GEF Objectives: - Conserve biodiversity in Viet Nam; mitigate climate change impacts in the country; strengthen reasonable use and conservation of international water resource. - Seek and mobilize GEF supports at maximum level. Short-term (2001-2002) • OP5: Removal of barriers to energy conservation and energy efficiency. 1. Energy efficiency improvement in the public lighting sector. 2. Energy conservation in small and medium scale enterprises 3. Demand-side management ( phase 2 ) Energy efficiency improvement building Short-Term (2001-2002) OP 6: Renewable energy application enhancement 1. ORMAT geothermal power exploration 2. Renewable energy development Response activities of short-term: 1. Methane emission reduction in rice fields. Medium-Term (2003-2005) • Energy efficiency improvement in big scale enterprises • GHG emission reduction in the transport sector • Recovery of methane emitted from landfill sites Opportunities and challenges to GEF project development Opportunities: - GEF funds are increasing - Viet Nam has adequately conditions to receive financial support from GEF - Viet Nam Government supported projects regarding global environment protection - Viet Nam has established national strategy and plan of developing GEF projects - Viet Nam has many project ideas according to the GEF criteria Opportunities and Challenges to GEF project development Challenges: - The national and international procedure, process for approving GEF projects are still complex and long time. - The connection between projects financed by GEF and national programs, projects is still limited. - The capacity for project design according to the GEF requirements is still limited. - The capacity for attracting co-sponsor is weak Opportunities and Challenges to CDM implementation in Viet Nam Opportunities: - The GHG emission in Viet Nam is at low level. Viet Nam is a potential market for foreign buyers to get CERs. It facilitates Viet Nam’s participation in CDM activities. - The potentialities to implement CDM projects are great, especially in the electric energy, industry, transport, commerce sectors. Challenges: CDM Awareness and knowledge are limited in the country Lack of an appropriate institutional framework for promoting CDM activities. Measures to promote CDM activities in Viet Nam - CDM raise awareness and knowledge for policy makers, managers, enterprises, private sector.... - Train and improve capacity for the personnel to manage and implement CDM projects. - Establish National CDM Authority - Study and evaluate opportunity for CDM project development. - Strengthen international cooperation. Thank you