Climate Change and Green Growth in Vietnam
Start & End Date: 2016-2017
Country/Countries: Vietnam
Multilateral Institution(s) Involved: World Bank
Rapid economic growth in Vietnam in recent decades has created opportunities for people and businesses; however, the effects of climate change may slow down, halt or even reverse some development achievements unless measures are taken to build resilience and to adapt to these impacts. Climate-induced impacts in Vietnam will continue to increasingly threaten the livelihoods of people in coastal or low-lying deltas (more than 50 percent of the total population) as well as the large percentage of the workforce and income that depends on natural resources. This is largely attributed to Vietnam’s high and increasing exposure to gradual onset impacts associated with rising sea-levels, ocean warming and increasing acidification combined with sudden-onset impacts associated with tropical cyclones and rapidly increasingly heat extremes. Besides that, the growth of fossil fuel energy consumption by industry and coal-fired power plants in Vietnam has led, and will continue to lead to significant increases in emissions from local air pollutants and greenhouse gases (GHGs). Further, with energy use growing faster than in any country in the region and the intensity of energy consumption among the highest in the world, Vietnam’s total and per capita GHG emissions have almost tripled have made Vietnam the country with the second highest level of carbon intensity in the region after China. This highlights the need for Vietnam to act early to avoid investment in technology and infrastructure that will “lock in” highly energy inefficient economic structures. Successfully doing so would lead to positive spillover effects in terms of economic growth, productivity and avoided health costs.
The development objectives of Climate Change and Green Growth Project for Vietnam are: a) improving inter-sectoral coastal planning and public investment finance programming across selected key sectors in support of climate change and green growth action; (b) developing and safeguarding selected natural resources services; and (c) promoting selected cleaner production systems. The operation will assist the Government of Vietnam (GoV) strengthen its climate change and green growth reform action as a contribution to improving sustainability and quality of growth. The operation will assist the Government of Vietnam (GoV) strengthen its climate change and green growth reform action as a contribution to improving sustainability and quality of growth. It builds on the first Climate Change DPF series, the World Bank’s sustained dialogue on climate change and green growth with Vietnam, including coordinated lending and advisory support, and strong government ownership of program objectives. A window of opportunity exists in the context of the 2016-2020 Socio-Economic Development Plan (SEDP) before the post-2020 period, to accelerate reforms that can strengthen the country’s resilience to climate change and promote a lower-carbon, greener growth development path. The operation supports the government’s goal to enhance the enabling environment for climate change and green growth interventions in Vietnam, building on the priorities identified jointly by the government and Development Policies (DPs) and in support of the SEDP 2016–2020. The engagement areas are consistent with priorities articulated in the Bank’s Country Partnership Strategy (CPS) for Vietnam (2012–2016). The formulation of the Post-2015 SP-RCC has benefited from Bank engagement on climate change and sector-specific engagement 10 with the government. The programmatic series of operations offers the opportunity of a focused platform to promote reforms in key complex areas and in a challenging context where changes take time, such as for the development of renewable energy, energy efficiency, and for addressing climate risks in key vulnerable areas.
By the end of 2018, an additional 14,100 hectares of coastal forests were planted, representing a 4.5% increase, as compared to the baseline of 310,695 hectares.• There was no data available at the time of the ICR regarding the indicator on percentage reduction of the annual rate of net emissions in the selected provinces when the operation closed. Based on additional data from the project team, during 2019, Vietnam planted an additional 3,290 hectares of coastal forest (data provided to us by MARD). Compared with the target set at appraisal of DPF1, by end of 2019 the achievement is 5.6%. However, the Government has reviewed the coastal forest plantation program since DPF-1 preparation and adjusted its target to a total of additional 21,600 hectares by 2020. With the total achievement of an additional 17,390 hectares by end of 2019, the Gov is on track to achieve its updated target.