Introduction to CDM National Authority and CDM potential projects in Viet Nam

1
Introduction to CDM National Authority and CDM
potential projects in Viet Nam

• Nguyen Khac Hieu
• Deputy Director General
• International Cooperation Department
• Ministry of Natural Resources and Environment of
  Viet Nam

2
Overview

• Vietnam ratified UNFCCC on 16 November 1994.
• Kyoto Protocol (KP) signed on 3 December 1998
  and ratified on 25 September 2002.
• Ministry of Natural Resources and Environment
  (MONRE) is assigned by the Government as a
  National Authority to implement UNFCCC and KP.
• Submitted first national communication to UNFCCC
  in November 2003

3
Overview

• The project Capacity Development for the Clean
  Development Mechanism in Viet Nam, phase 2 was
  carried out in Viet Nam in 2003 with 6 main
  tasks.
• International Cooperation Department, MONRE is a
  Executing Agency to coordinate and carry out the
  project.

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Overview

• Task 1 Public information for raising CDM
  awareness
• Task 2 Capacity development on CDM for policy
  makers
• Task 3 Establishment and capacity development
  for CDM National Authority (CNA)
• Task 4 Capacity development for stakeholders
  relevant to CDM projects
• Task 5 Capacity building on CDM research and
  education
• Task 6 Creating a pipeline of CDM eligible
  projects

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CNA in Viet Nam

• To meet one of three basic requirement
• Ratification of the KP
• Establishment of a CDM National Authority (CNA)
• Voluntary participation in the CDM

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CNA in Viet Nam (cont.)

• Point of view on CNA
• Based on existing organizations with neatly
  arrangement
• Process quickly work related to CDM but keep
  within the existing law
• Obtain maximum possible benefit from
  participation in the CDM market
• Accord with Kyoto Protocol and domestic
  circumstance
• Capacity development for the CNA to manage
  CDM activities plays an important role in CDM
  implementation in the country

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CNA in Viet Nam (cont.)

• 1. Establishment
• International Cooperation Department, MONRE
• Foundation
• - Official Document No. 502/BTNMT-HTQT dated 24
  March 2003
• - Promulgating CNA of Viet Nam at COP 9
  of UNFCCC, Milano, Italy, 12/2003

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CNA in Viet Nam (Cont.)

• 2. Functions and tasks
• Building national assessment criteria,
  regulations and guidelines on Clean Development
  Mechanism (CDM).
• Assessing CDM projects at the national level.
• Submitting potential CDM projects to CDM National
  Executive and Consultative Board (CNECB) for
  evaluating them.
• Receiving, assessing and submitting Project Idea
  Note (PIN) or Project Design Document (PDD) of
  CDM projects to the Minister of MONRE for issuing
  a formal letter of endorsement or letter of
  approval respectively.
• Providing CDM information to interested
  investors, related organizations, consultants and
  public.
• Managing and co-ordinating CDM activities and
  investment in Viet Nam.

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CNA in Viet Nam (Cont.)

• Documents regarding guideline for CDM
  activities
• a. Document No. 465/BTNMT-HTQT dated 2/3/2003
  regarding identification, development and
  registration of CDM projects
• b. Document No. 1022/BTNMT-HTQT dated 8/5/2003 to
  inform 1. establishment of CDM National
  Executive and Consultative Board and, 2.
  prior investment fields and issues for CDM
  projects in Viet Nam in the next period

10
CNECB in Viet Nam

• Establishment
• Decision No. 553/QD-BTNMT dated 29 April 2003
• Decision No. 813/QD-BTNMT dated 08 July 2004

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CNECB in Viet Nam (Cont.)

• Members of CNECB
• MONRE (one chairperson, one permanent
  representative and one secretary)
• Ministry of Foreign Affairs (MOFA)
• Ministry of Finance (MOF)
• Ministry of Planning and Investment (MPI)
• Ministry of Trade (MOT)
• Ministry of Science and Technology (MOST)
• Ministry of Agriculture and Rural Development
  (MARD)
• Ministry of Industry (MOI)
• Ministry of Education and Training (MOET)
• Viet Nam Union of Science and Technology
  Associations (VUSTA)

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CNECB in Viet Nam (Cont.)

• Functions and tasks
• Providing consultation to MONRE on policies
  related to development, implementation,
  management of CDM activities in the country.
• Providing consultation on guidance and assessment
  for CDM projects in Viet Nam under the Kyoto
  Protocol and UNFCCC.
• Annual meetings of CNECB 2 times, one in April
  and the other in September.

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CDMs Institutional Arrangement
Ministry of Natural Resources and Environment
CDM National Executive and Consultative Board
EB
International Cooperation Department - CDM
National Authority -
Project Developers
CDM Secretariat (NOCCOP)
Consultation
Energy Technical Expert Group
Non-Enegy Technical Expert Group
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Proposed approval procedure for CDM projects in
Viet Nam
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Approval Procedure for CDM Project
PIN
Project Developer
No
National CDM criteria
yes
CNA
Endorsement letter
Project Developer
OE
PDD
CNECB
No
CDM criteria
yes
CNA
Letter of Approval
CDM Executive Board
Registration
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CDM project cycle
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CDM Project Criteria
1. Exclusive criteria First criteria for
screening, selecting possible CDM were developed
including a/ Sustainability b/ Additionality c/
Feasibility
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2. Priority Criteria
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2. Priority Criteria
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Potential CDM projects under consideration
Under consideration
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Preliminary portfolio of CDM project
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Primary portfolio of CDM project (cont.)
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Experiences from CNA

• Strengthening cooperation between CNA and related
  ministries to facilitate CDM activities.
• Process quickly work related to CDM but keep
  within the existing law
• Obtain maximum possible benefit from
  participation in the CDM market
• Accord with Kyoto Protocol and domestic
  circumstance

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Next CDM activities in Viet Nam

• Enhance CDM project development skills (project
  design, documentation, negotiation) for project
  developers, stakeholders.
• Improve capacity and skills for CNA (DNA) staffs
  and CNECB members.
• Develop and implement CDM projects.
• Integrate CDM issues into local and national
  development strategies, plans.
• Participate in the international and regional
  conferences, workshops to learn and share
  experiences from other countries.

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CD4CDM Project Office57 Nguyen Du, Ha Noi, Viet
NamTel 844 8228974 - Fax [phone] Email
vnccoffice_at_fpt.vn
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Thank you very muchfor your attention