NAMA potential of Vietnam Vuong Xuan Hoa Institute of Meteorology, Hydrology and Environment Ministry of Natural Resources and Environment Climate Change Research Center Vietnam Action Plan of Wind Power NAMA in Vietnam

Content 1.Detail activities; 2.Implementation arrangements; 3.Work plan.

1. Detail activities Phase 1 – Preparation and Scoping (August 2013 – August 2014): – Activity 1.1. Definition of scope and objective ; Scope: Single pilot project of wind power in power generation sector Objective: GHG mitigation and co-benefits – Activity 1.2. Identifying the barriers of NAMA wind power project: Wind power development faces various barriers that are political, economic, financial, legal, regulatory, technical, institutional... NAMA can propose the measures and steps required to overcome these barriers to support wind power development.

1. Detail activities (cont’) – Activity 1.3. Definition of Data Requirement and Collection ; The NAMA development will require a huge amount of data for site selection, calculation of wind energy potential, baseline setting, the calculation of NAMA emissions, the required abatement and implementation costs. All data required must be listed for setting plan for data collection. – Activity 1.4. Definition of the Business As Usual Scenario: The baseline scenario is the emissions that would have occurred in the absence of the NAMA action, also called the “BAU” scenario. The BAU definition for the energy sector is a complex exercise, depending on their energy pricing, energy resources available, projected economic development, etc.

1. Detail activities (cont’) – Activity 1.5.Estimatation of Emission Reductions ; The BAU is crucial factor when calculating GHG emission reductions. A NAMA’s mitigation effect is measured by the difference between the BAU emissions and the level of emissions under the NAMA. There are several methods for calculation. The approved CDM methodology could be used for calculation of GHG emission reduction of wind NAMA project. – Activity 1.6. Definition of Co-benefits of the wind NAMA: Benefits to the economy: an increased number of jobs, reducing expenditures in foreign currencies to import fuels for power generation. Benefits to environment: emission reduction Benefits to energy security: Reduction of dependent on fuels imported.

1. Detail activities (cont’) – Activity 1.7. Plan for MRV System Measurement, Reporting, and Verification (MRV): Measurement: either by monitoring, for example, the amount of fuels that have been saved through NAMA, or calculation using the available data; Reporting: a result of climate change mitigation impact that has been measured in the form of ton of CO2e per year (t-CO2e/year) reduced by NAMA, is compiled and reported. Verification: the result obtained through measurement is checked and confirmed whether all the information and data contained in a report is accurate and correct. It is advised not to establish a new monitoring system for the proposed NAMA, but to use the existing monitoring and reporting system available for CDM projects.

1. Detail activities (cont’) – Activity 1.8. Identification of Institutions and Responsibilities: The NAMA coordinator should clearly define the roles of all actors involved in the NAMA conception phase, including: Involved entities; Roles and responsibilities of involved entities; Definition of expertise required (technical or institutional). – Activity 1.9. Stakeholder Engagement: Stakeholder engagement should play a decisive role throughout the process of wind NAMA development. Stakeholders would be more strongly involved in the early stages of preparing a NAMA when crucial issues require the stakeholders´ attention. Stakeholders should be kept informed when the NAMA is being implemented.

1. Detail activities (cont’) – Activity Identifying support options: Develop a mechanism for applying low-interest loans from mitigation funds; Develop a mechanism for apply government guarantee; – Activity Involvement of Donors NAMA finance from: Public domestic sources International donors. – Activity Finalization of the Wind NAMA concept note: The wind NAMA concept should be finalized and approved before submitting to the UNFCCC.

1. Detail activities (cont’) Phase 2: Apply supporting policies and measures for a pilot project in Vietnam (August December 2016) : – Phase 2 will consist of two components, including (i) capacity building for local partners, and (ii) the implementation of a pilot project in Vietnam. – An application for low-interest loan to mitigation funds would be made for the selected project. – A propose for a government guarantee would be made for the selected project.

1. Detail activities (cont’) Phase 3: Full development of the NAMA program (January 2017 – December 2020) : Phase 3 will consist in the full implementation of the NAMA throughout cities in Vietnam. In phase 3, the role of state renewable energy agencies in the project will be enhanced so as to apply supporting policies and measures for wind energy in the whole country. On this stage, the MOIT will play a vital role in the project, with the technical assistance from DMHCC and UNEP, which will be involved in the Consultation Board to MOIT. By the end of phase 3, the project is expected to lead to a significant reduction of GHG emissions from energy sector in order to achieve the target of reducing GHG emissions by 8% from energy and transportation by 2020, in line with Decision No. 1775/QD-Ttg. – Applications for low-interest loan to mitigation funds would be made for approved wind power projects. – Propose for government guarantee would be made for approved wind power projects.

2. Implementation arrangements

3. Work plan Phase 1 – Preparation and Scoping (August 2013 – August 2014): Activity2013 AugSepOctNovDec 1. Definition of scope and objective 2. Identifying the barriers of NAMA wind power project 3. Data requirements and collection 4. Definition of BAU 5. Estimation of GHG reductions 6. Definition of co-benefits

3. Work plan (cont’) Phase 1 – Preparation and Scoping (August 2013 – August 2014) (cont’): Activity2014 JanFebMarAprMay Jun e JulyAug 7. Plan for MRV system 8. Institutions and responsibility 9. Stakeholder engagement 10. Identifying support options 11. Involving donors 12. Finalizing the wind NAMA concept

3. Work plan (cont’) Phase 2 –Implementation of a pilot project in Vietnam (September December 2016): OutputActivities Coordinat or Key stakeholdersYear 1Year 2 Output: implementation of wind power pilot project Activities 1.1: Review on the investment report, investment project and the electricity development planning of the city/province DMHCC, MOIT Department of Industry and Trade, the provincial People’s Committee and EVN x Activities 1.2: Select the location DMHCC, MOIT Department of Industry and Trade, the provincial People’s Committee x Activities 1.3: Select the approved wind power projects which are suitable to the objective of NAMA proposal (capacity, location) DMHCC, MOIT The People’s Committee, the Department of Planning and Investment, and the Department of Industry and Trade x Activities 1.4: Apply a low-interest loan and government guarantee to assist the construction of the selected project DMHCC, MOIT The project owner, Mitigation funds, The People’s Committee, Ministry of Finance xx

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