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

Overview Vietnam ratified UNFCCC on 16 November Kyoto Protocol (KP): signed on 3 December 1998 and ratified on 25 September 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

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.

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

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

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

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

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.

Documents regarding guideline for CDM activities: 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 CNA in Viet Nam (Cont.)

Establishment  Decision No. 553/QD-BTNMT dated 29 April 2003  Decision No. 813/QD-BTNMT dated 08 July 2004 CNECB in Viet Nam

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)

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.

Ministry of Natural Resources and Environment International Cooperation Department - CDM National Authority - CDM National Executive and Consultative Board CDM Secretariat (NOCCOP) Project Developers Energy Technical Expert Group Non-Enegy Technical Expert Group Consultation CDM’s Institutional Arrangement EB

Proposed approval procedure for CDM projects in Viet Nam Project Document Vietnamese Opinion + PP OE YES Exclusive Criteria Priority Criteria NO REJECTED YES APPROVED CNA

PIN National CDM criteria Endorsement letter PDD CDM criteria Letter of Approval Registration yes No CNA Project Developer CNECB CNA CDM Executive Board No Project Developer Approval Procedure for CDM Project OE

CDM project cycle Project Design and Formulation Agency Entity (EB&COP/MOP) Project participants Executive Board (EB) Project participants Designated Operational Entity (DOE) Executive Board (EB) Certified Emission Reduction Approval/ Registration Monitoring Validation/ Certification Issuance of Certified Emission Reductions (CERs) Designated Operational Entity (DOE) CDM National Authority (CNA)

1. Exclusive criteria First criteria for screening, selecting possible CDM were developed including: a/ Sustainability b/ Additionality c/ Feasibility CDM Project Criteria

2. Priority Criteria

Potential CDM projects under consideration No Name of Project Project Site Emission reductionpotential (Gg CO2) Status 1 RangDong oil field associated gas recovery utilization VungTau City 6,740Approval letter 2 Thuong Ly landfill closure and gas recovery and utilization Hai Phong City 64 Endorsement letter 3 HoChiMinh /Hanoi Cities landfill gas for electricity generation HCM/Hanoi Cities 3,100 Endorsement letter 4 Reforestation of newly allocated land in A Luoi- North Central Vietnam Thua Thien Hue Province Increasing the efficient use of energy in brewery Thanh Hoa province 11 Under consideration 6 Thu Duc power plant unit 3 fuel switch from oil to gas HCM City 664 Under consideration 7 Wind+Diesel hybrid electricity supply system Binh Thuan City 106 Under consideration Under consideration

Preliminary portfolio of CDM project No Name of projectDeveloperCapacity Expected GHG reduction (KT CO2) 1 Upgrading existing coal fired thermal of Pha Lai power plant Electricity of Vietnam (EVN) 440 MW378/y 2 Wind power plant in Quang Tri Province QuangTri Electricity Company 20 MW129/y 3 Geothermal power plant in QuangNgai Province ORMAT private50 MW310/y 4Dak Pone hydro powerRCEE14 MW40/y 5 Cogeneration for PhongKhe paper village RCEE6.4 MW74/y 6 Rice husk power plant in Tien Giang Area Institute of Energy3 MW56/y

Primary portfolio of CDM project (cont’.) No Name of project DeveloperCapacity Expected GHG reduction (KT CO2) 7 Improvement of oil fired boilers in DongNai pulp and paper factory DongNai paper factory 25,000 t paper/y 4.3/y 8 Improvement of energy efficiency in SongDa cement factory SongDa cement factory 85,000 t/y 18.2/y 9 Efficiency of public lighting system in big city Institute of Material Science 100,000 units190/y 10 Advanced sedimentary brick kiln in BacNinh province Institute of Thermal Engineering 400 mill.pieces/y 49/y 11 Reforestation of newly allocated land in ALuoi district SNV Farmer Union of ALuoi 3,000 ha 28/y

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

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.

CD4CDM Project Office 57 Nguyen Du, Ha Noi, Viet Nam Tel: Fax:

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