Market Readiness Programme Vietnam

Start & End Date: 2017-Ongoing

Country/Countries: Vietnam

Multilateral Institution(s) Involved: World Bank

Vietnam has set priorities for climate change mitigation in its national charter on environment, Strategic Orientation for Sustainable Development (SD), National Climate Change Strategy (NCCS) and (Draft) Green Growth Strategy (GGS). Vietnam has ambitious laws and action programs for energy efficiency and the large-scale development of renewable energy sources. The mid to long-term objectives of these are to bring the share of renewable energy to 4.5% in 2020 and to 6.0% in 2030 and reduce average energy elasticity ratio of 1.5 by 2015 and 1 by 2020.

The Project Development Objective (PDO) is to strengthen the capacity of Viet Nam’s Government to develop market-based instruments (MBI) to reduce greenhouse gas (GHG) emissions in Viet Nam. Specifically, the VNPMR objective is to provide capacity building for the development, implementation and publishing of policies, state management instruments for Nationally Appropriate Mitigation Actions (NAMAs), establishing MBI, piloting credited NAMAs and developing a roadmap for participating in the domestic and international carbon markets. The Project Detailed Outline aims at the following specific objectives: 1) Improve quality and effectiveness of state management for NAMAs, credited NAMAs through the review, supplement and issue of a number of policies and state management instruments related to carbon markets; 2) Establish MBIs, a database system on GHG emissions and a roadmap for participating in the carbon markets in the field of solid waste management; 3) Pilot credited NAMAs, develop a reporting system for GHG emission reduction activities and a roadmap for participating in the carbon markets in the field of steel production industry; and 4) Raise awareness, knowledge management for organizations’ management from center to province levels, monitoring activities related to carbon markets, and organizations and individual’s participation in the carbon markets.

The project is expected to support Vietnam in its challenge of addressing unprecedented growth of GHG emissions in a context of growing international commitment to ambitious climate action.