Proposal for establishing the CDM National Authority

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
Proposal for establishing National Authority on CDM
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
* CO2 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
1. Projectdesign
design
1. Project
PP
PP
2.
2. Validation
Validation
NOE
NOE
OE
OE
4. Registration
4.
Registration
DNA &
CDM
Executive
Board
M onitoring
5.5.Monitoring
PP
PP
NOE
NOE
OE
OE
7.
7. Certification
Certification
NOE
OE
NOE
NOE
OE
OE
8.
8. IIssuance
ssuance ofof
certified
certifiedemission
emission
reductions
reductions: :
6.
6. Verification
Verification
3.
3. Project
Project
Approval
Approval
DNA
DNA
CDM
Executive
Board
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
Executive Board
MORI (HMS)
DNA of CDM
Others
Ministry of industry
+ CDM Cell or functiom
PetroVietnam
+ CDM function
Ministry of Agriculture and Rural
Development
+ CDM Cell or function
Coal Vietnam
+ CDM FUNCTION
National ENERGY COMMITEE
+ CDM function
EVN
+ CDM Function
Others
ministries
Other Industries