Key Industries Identified to Further National Efforts on Green Growth and Climate Change

Vietnam image 1A large part of Vietnam's population of over 91 million live in the Mekong Delta, along the country's 3,260 km of coastline and on two major archipelagos. This makes Vietnam one of the world's most vulnerable countries to the effects of climate change. Although Vietnam's GHG emissions are still low, over the last decade, Vietnam accounted for the fastest growth in GHG emissions in the region. Both Vietnam's total emissions and per capita emissions almost tripled in the ten year period (2004 - 2014) while the carbon intensity of GDP increased by 48%1. Without ambitious mitigation actions, the increase in emissions growth is expected to continue, given the country's rapid pace of social and economic development as Vietnam moves towards an industrial economy.

The industrial sector accounted for an estimated 34% of Vietnam's total energy consumption in 2007, a strong indicator of the sector's contribution to national GHG emissions. Industrial emissions are expected to increase rapidly in the coming years, as is energy consumption. Although the Vietnamese government is committed to mitigating climate change by reducing GHG emissions and promoting the use of clean, renewable energy, especially in the industrial sector, data on emissions in various industrial sub-sectors, as well as their potential for reducing emissions by adopting new technology, remain incomplete.

In response to this data gap, and to focus future initiatives at these targeted industry sectors the LECB Programme commissioned a scoping assessment of Vietnam's industrial sub-sectors. This assessment sought to identify the areas in which modernisation would have the greatest impact on emissions reduction. According to UNDP Programme Officer Andreas Karlsen, "This assessment is an important first step for Vietnam. It lays the foundation for further research, capacity building and mitigation actions with the Ministry of Industry and Trade."

Constraints and Opportunities for Reducing GHG Emissions in Vietnam

Vietnam has been a party to the UNFCCC since 1994. Despite the government's awareness and commitment, the country's Second National Communication to the UNFCCC states: "Outdated technology continues to be in widespread use, causing the level of environmental pollution, including the emission of greenhouse gases, to rise."

As part of the country's response to this, Vietnam's Green Growth Strategy provides an overall framework for reducing GHGs nationally. The strategy not only acknowledges that clean technologies are important for sustainable development; its "strategic tasks" also point to the country's opportunities for achieving a low-carbon economy.

Prioritising NAMAs: Assessment of Industrial Sub-sectors

Vietnam image 2An industry-scoping assessment was carried out within a large-scale project called Strengthening Capacity on Climate-Change Initiatives in Industry and Trade Sectors (CCIT), which has LECB support. The CCIT project seeks to remove barriers that restrict Vietnam's industries from adopting more efficient technology and sustainable business practices.

This assessment analysed five of Vietnam's most energy- and GHG-intensive industrial sub-sectors to determine those most suitable for participation in CCIT and LECB — that is, those areas in which future efforts could yield greatest benefits in terms of reduced GHG emissions.

Based on the assessment results, these sub-sectors were prioritised for additional research and technical assessments to create the foundation for NAMA development.

Key Outcomes and Next Steps

According to Andreas Karlsen, this assessment was an encouraging first step for the LECB Programme in Vietnam. Follow-up activities include GHG baseline and emission scenario development, identification of emission-reduction options, capacity building in key ministries and follow up comprehensive actions will lead to the formulation of potential NAMAs within steel and chemical fertilizer sub-sectors.

Lessons Learned and Good Practices

The scoping assessment for the industrial sub-sector highlighted a number of lessons and good practices that are relevant to mitigation efforts outside Vietnam. The prevailing national ownership, especially in terms of policy research, was very helpful. In Vietnam, using national energy statistics and GHG inventory data as inputs for this assessment enabled a high level of consistency and coherence, which translated to robust, reliable outputs.

When conducting any research that attempts to inform policy making, it is also critical to understand the relevant government's particular mandate, regulatory options, strategies and priorities. Since some sectors and emission sources are more likely to be addressed by government initiatives than others, the selection of sub-sectors for further study must be consistent with the national political agenda. Accordingly, the CCIT/LECB project was formulated within the context of Vietnam's Green Growth Strategy.

1 World Bank. 2014. Vietnam - Third Climate Change Development Policy Operation Program. Washington, DC; World Bank Group.

Key Messages

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Initiatives and actions supporting NAMA formulation must be rooted in the national context and be complementary to national goals and priorities

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Direct and close interactions with stakeholders and beneficiaries are required to secure sustainable and long term solutions for climate change mitigation

Industry stakeholders (both government and private owned) must be aware of the benefits and potential gains of the NAMA actions

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It is important to have champions in the field to facilitate and promote NAMA development

More Info

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