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 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
UNFCCC in November 2003
communication
to
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
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
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.
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
CNECB in Viet Nam
Establishment
Decision
No.
553/QD-BTNMT
dated 29 April
2003
Decision
No.
813/QD-BTNMT
dated 08 July
2004
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.
CDM’s 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
Proposed approval procedure
for CDM projects in Viet Nam
+
Project Document
Vietnamese Opinion
PP
OE
CNA
NO
Exclusive Criteria
YES
Priority Criteria
YES
APPROVED
REJECTED
Approval Procedure for CDM Project
PIN
Project Developer
No
National CDM criteria
yes
OE
CNA
Endorsement letter
Project Developer
PDD
CNECB
No
CDM criteria
yes
CNA
Letter of Approval
CDM Executive Board
Registration
CDM project cycle
Agency Entity
Project Design
and Formulation
Approval/
Registration
Project participants
Designated Operational
Entity (DOE)
Executive Board (EB)
Monitoring
Project participants
Validation/
Certification
Designated Operational
Entity (DOE)
Issuance of
Certified Emission
Reductions
(CERs)
Executive Board (EB)
Certified Emission
Reduction
(EB&COP/MOP)
Designated Operational
Entity (DOE)
CDM National Authority
(CNA)
CDM Project Criteria
1. Exclusive criteria
First criteria for screening, selecting
possible CDM were developed including:
a/ Sustainability
b/ Additionality
c/ Feasibility
2. Priority Criteria
Category
ASustainability
Criterion content
Economic
National
-Growth national income
Sustainability Income
-CER revenues
Generation
Economic
-Technology transfer
Externalities -Import Substitution
Environmental Green House -GHG emission reduction
Sustainability Effect
Non GHG Air -Non GHG Air Pollution emission
Pollution
-Non GHG water pollution
Waste
-Waste generation rate
Ecosystem
-% change in forest cover
-Soil erosion
-Likely effect on biodiversity
Poverty
-Creation of rural employment
eradication
-Reduction of poor household
Social
and Quality of life -People income
Institutional
-Improving of living conditions
Sustainability
Readiness of - Public sector
Implementing - Private sector
Agencies
2. Priority Criteria
Category
Criterion content
BInternational demand
Commerci Attractiveness to investors
al Viability
CGet strong support of the central and
Feasibility local authorities and be more
attractive for investors
Having adequate infrastructure and
manpower.
Potential CDM projects under consideration
Emission
reductionpotential
(Gg CO2)
Status
No
Name of Project
Project
Site
1
RangDong oil field associated
gas recovery utilization
VungTau
City
6,740
Approval 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
192
5
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 project
Developer
Capacity
Expected GHG
reduction
(KT CO2)
Electricity of
Vietnam (EVN)
440 MW
378/y
QuangTri
Electricity
Company
20 MW
129/y
1
Upgrading existing coal
fired thermal of Pha Lai
power plant
2
Wind power plant in
Quang Tri Province
3
Geothermal power plant
in QuangNgai Province
ORMAT private
50 MW
310/y
4
Dak Pone hydro power
RCEE
14 MW
40/y
5
Cogeneration for
PhongKhe paper village
RCEE
6.4 MW
74/y
6
Rice husk power plant
in Tien Giang Area
Institute of Energy
3 MW
56/y
Primary portfolio of CDM project (cont’.)
Developer
Capacity
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 units
190/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
No
Name of project
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: 844 8228974 - Fax: 844 8263847
Email: [email protected]
Thank you very much
for your attention