MONRE UNEP-RISO NATIONAL WORKSHOP ON CAPACITY DEVELOPMENT FOR CDM Hanoi, 27-28/11/2002 Proposal for establishing National Authority on CDM in Vietnam Dr. Dao Duc Tuan Ministry of Natural Resources & Environment Dr. Bui Huy Phung National Centre for Science & Technology

Proposal for establishing National Authority on CDM Contents: I- Reality Requirements II- Point of view III- Initial assessment research IV- Reforming existing structure V- Establishing new organizations

I- Reality requirements: 1- International requirements * Kyoto Protocol is coming enter into force;legal framework and international organizations relating CDM are being developed * CDM activities contribute to sustainable development in developing countries * CO 2 markets is nearly established in fact Proposal for establishing National Authority on CDM

2 - National requirements * Development demand is increasing quickly in Vietnam and CDM is a suitable mechanism. * Renovation process requires reform of structure, institution and development programme * Need to establish CDM National Authority according to Kyoto Protocol requirements * After ratification of Kyoto Protocol (25/9/2002), it is necessary to have government organization and NGOs with relevant function to cooperate and facilitate national CDM activities.

Proposal for establishing National Authority on CDM II- Point of view on CDM structure formulation 1- Short term * Neat arrangement, based on existing organizations * Process work quickly but keep within the law * Obtain high effect in CDM market * Accord with Kyoto Protocol and domestic circumstance 2- Long term Development of CDM activities and a lot of works * Establish organizations with international level * Organization framework need strengthening to undertake whole cycle of CDM projects.

Proposal for establishing National Authority on CDM III- Initial research for establishing CDM Offices 1- Kyoto Protocol and related documents 2- CDM Project Cycle - Project design - National approval - Registration - Finance - Monitoring - Verification, certification - Insurance of CERs

CDM Project Cycle in Vietnam

Proposal for establishing National Authority on CDM 3- Review framework structure of relevant ministries, agencies: * Ministry of Foreign Affairs * Ministry of Finance * Ministry of Industry * Ministry of Planning and Investment * Ministry of Science and Technology * Ministry of Agriculture and Rural Development * Ministry of Transport * Hydro-meteorological Service of Vietnam (HMS) * NGOs

Proposal for establishing National Authority on CDM Comments * Related Ministries haven’t got function and framework structure to meet CDM activity requirements at present * Only HMS (now HMS belongs to Ministry of Natural Resources & Environment) is assigned by the Government as a National Authority for implementing UNFCCC and KP * It is necessary to replenish structure to promote CDM activities in the country

Proposal for establishing National Authority on CDM 4- Review existing law, organization, policy and development programme relating CDM activities * Law of land, environment, minerals, oil and gas,... * Circular Letters, Decrees, Regulations in relevant sectors such as: Industry, Energy, Agriculture, Forestry, Transportation, Finance, etc. Comments: * Legal framework was established that is base of sectoral activities * It is necessary to reform existing organization framework to promote CDM activities

Proposal for establishing National Authority on CDM IV Reforming of existing structure: 1- Supplement core groups on CDM (e.x department, division) in relevant ministries * Ministry of Natural Resources and Environment * Ministry of Planning and Investment * Ministry of Finance * Ministry of Foreign Affairs * Ministry of Industry * Ministry of Agriculture and Rural Development * Ministry of Transportation 2- Supplement CDM function for People’s Committee, special departments at local level

Proposal for establishing National Authority on CDM 3- Supplement CDM function for big enterprises such as Vietnam Petroleum, Vietnam Coal Corporation (VINACOAL), Electricity of Vietnam (EVN), etc. 4- Supplement CDM function for NGOs such as science unions, private enterprises 5- Develop main research institutions related to CDM activities 6- Create favourable environment, determine relationship between organizations, guide to reach effective activities and capacity building for CDM

Proposal for establishing National Authority on CDM V. Establishing new organizations 1- According to Kyoto Protocol and CDM it is necessary to establish CDM National Offices such as Designated National Authority (DNA) and Executive Board (EB) 2- Function of DNA: * Identify national criterion and guide to CDM activities * Submit CDM projects to EB and monitor projects * Collaborate with relevant international organizations in registration, monitoring, certification and insurance of CERs for CDM projects

Proposal for establishing National Authority on CDM 3- Function of EB * Approve CDM projects * Decide and coordinate CDM activities between ministries, provinces, NGOs and other important activities. * Cooperate with relevant international organizations

Proposal for establishing National Authority on CDM 4- Organization proposals a- In the short term, CDM activities are only in beginning stage, so work-load is not much * DNA should be formulated neatly and located in Ministry of Natural Resources & Environment * Supplement function of EB to the Office of Vietnam’s Government b- In the long-term, when CDM activities is increased, workload will be also increased * DNA should be strengthened and developed * EB should be a independent organization with its power function

State management structure for sectors and proposal CDM unit Prime Minister Ministry of industry + CDM Cell or functiom Ministry of Agriculture and Rural Development + CDM Cell or function PetroVietnam + CDM function Others Other Industries Coal Vietnam + CDM FUNCTION EVN + CDM Function National ENERGY COMMITEE + CDM function Executive Board MORI (HMS) DNA of CDM Others ministries