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OVERVIEW OF CLIMATE CHANGE FINANCING MECHANISMS IN CAMBODIA, LAO PDR, THAILAND, AND VIETNAM

OVERVIEW OF CLIMATE CHANGE FINANCING MECHANISMS IN CAMBODIA, LAO PDR, THAILAND, AND VIETNAM. Patricia Gorin, FAO Rome Vientiane, 29 Aug 2011. General context for the region. General context for the region. Carbon markets (CDM and voluntary). Private sector. Cambodia.

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OVERVIEW OF CLIMATE CHANGE FINANCING MECHANISMS IN CAMBODIA, LAO PDR, THAILAND, AND VIETNAM

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  1. OVERVIEW OF CLIMATE CHANGE FINANCING MECHANISMS IN CAMBODIA, LAO PDR, THAILAND, AND VIETNAM Patricia Gorin, FAO Rome Vientiane, 29 Aug 2011

  2. General context for the region

  3. General context for the region Carbon markets (CDM and voluntary) Private sector

  4. Cambodia

  5. Cambodia Plans and Strategies: Cambodian Climate Change Alliance (CCCA) Development of a National Green Growth Roadmap (2009) Climate strategies & programmes to mainstream low-carbon and environmental practices National Strategic Development Plan (NSDP) for 2010–2013. Unclear procedure, timeline, and resources Community Based Disaster Risk Reduction Strategy for Flood and Drought (2007 – 2012) Assist with national policy development, awareness raising and project identification

  6. World Bank (WB) and Asian Development Bank (ADB) Global Environment Facility (GEF) and UNDP Trust Fund • Support: sustainable livelihoods • climate adaptation & mitigation strategies • biodiversity conservation Cambodia • Strategic Programme for Climate Resilience (SPCR) (2010-2012) Diverse financing: Despite SLM and SFM being a priority for the Cambodian government, it has been managed in a fragmented way, with limited coordination and collaboration

  7. UN REDD in Cambodia Cambodia is among the most forested countries in Southeast Asia. Approximately 59% of its land is covered with forests (10.7 million ha) 2008: one of the first countries in the region to address REDD+ with pilot activities National target: maintaining 60% forest cover, one of the main objectives of the Royal Government of Cambodia‘s Rectangular Strategy Cambodia’s final REDD+ Readiness Preparation Proposal (R-PP) was submitted to the Forest Carbon Partnership Facility (FCPF) in March 2011. Total commitments (June 2011 – May 2014): US$ 10,905,000

  8. UN REDD in Cambodia REDD mechanism is an answer to strengthen institutional capacity, sustainable financing and engagement with local communities

  9. Voluntary Market Carbon Markets • Two REDD projects on the ground: involvement of private sector developers as well as NGOs, government and the community Clean Development Mechanism • January 2006: 1st CDM project approved • May 2011: 4 other CDM projects registered Innovative financing mechanism which is increasing, but still new and long methodology development, lack of knowledge, etc. Need to strengthen country ownership by government of local organizations

  10. Lao People’s Democratic Republic (PDR)

  11. LAO PDR Plans and Strategies: Capacity implementation of adaptation and mitigation actions Nov 2008 - Oct 2011: Second National Communication on Climate Change National Appropriate Mitigation Action (NAMA) to be developed CC awareness, mainstreaming & capacity building, strengthening policies & institutions 2009-2020: National Strategy and its Action Plan on Climate Change (NSCC)

  12. The Environmental Protection Fund (EPF) (GoL 2005): autonomous organization (WB, ADB) strengthen environmental protection, sustainable NRM, biodiversity conservation and community development The Forestry and Forest Resource Development Fund (FRDF) (MAF 2005): management of Protected Forest Areas and National Biodiversity Conservation Forests The Poverty Reduction Fund (PRF) (2006): financially autonomous organization ( WB, SDC). Finance small-scale infrastructure and services to strengthen local capacity LAO PDR 3 major National State Funds related to NRM:

  13. The Agro-Biodiversity Initiative (TABI) (GoL, SDC 2009-2011) • Programme-based approach projects in agriculture, conservation and poverty reduction LAO PDR Diverse financing: The Asian Development Fund (ADF) (2010-2017) • projects to improve agricultural productivity (sustainable use of NR) and build the capacity of Government The Asian Development Bank (ADB) (2010-2013) • Capacity Enhancement for Coping with Climate Change Least Developed Countries Fund (LDCF) • Improving the Resilience of the Agriculture Sector in Lao PDR to Climate Change Impacts (2010-2014) USAID, GIZ, UNEP • Climate Adaptation and Mitigation Strategies

  14. UN REDD in LAO PDR Forestry Strategy 2020 and the National Action Plan and Strategy on GHG Emission Mitigation: long-term target of increasing national forest cover from currently ca. 40 to 70%. 3 REDD+ projects are currently active in the country

  15. Voluntary Market Clean Development Mechanism (CDM) • Information sharing increase between the GoL and the private sector to develop forest carbon projects • Government supports the creation of comprehensive legal framework Carbon Markets • One project registered, 4 projects approved, 3 projects at validation stage, 7 projects at preparation stage Low funding in CC issues Need to strengthen institutional capacity, coordination and cooperation within the different sectors

  16. Thailand

  17. Thailand Plans and Strategies: Master Plan on Climate Change (2010-2019) participation of all sectors (public and private) Nov 2000: 1st National Communication Feb 2011: 2nd National Communication 11th National Economic and Social Development Plan (2012-2016): low carbon economy Support international cooperation to achieve sustainable development Adapt to CC impacts and promote GHG mitigation activities

  18. The UNEP / GEF’s Special Grant Programme (SGP) The Clean Technology Fund (CTF) Investment Plan (Jun 2011- Dec 2016) World Bank grant The Global Environment Facility (GEF) Special Climate Change Fund (SCCF) • locally-based climate risk reduction activities, embedded in the national disaster management • Direct and indirect investments in renewable energy and energy efficiency. • Natural Resources Management, GHG reductions • To analyze and design GHG trading programs Thailand Diverse financing:

  19. The GEF Trust Fund (Jun 2011-Jun 2015) Small Grants Programme (SGP) The Asian Development Bank (ADB), SGP for adaptation • Strengthen national and local capacity for mainstreaming biodiversity • is financing Climate Risk Management Assessment forAgriculture in Thailand • for Operations to Promote Tropical Forests: small-scale community forest management Thailand Diverse financing:

  20. UN REDD in Thailand Proposal of a voluntary fund for payments towards supporting REDD. Thailand is willing to develop a REDD national strategy and adopt a comprehensive REDD Readiness Plan (R-PP) by August 2012 Estimated costs of REDD interventions: US$ 13.74 million

  21. Voluntary Market Clean Development Mechanism (CDM) • The Thailand Greenhouse Gas Management Organization (TGO, 2008) is actively working to develop a voluntary carbon market • The TGO promote also the CDM • 46 registered CDM projects and 131 projects approved Carbon Market

  22. Vietnam

  23. Vietnam Plans and Strategies: assess CC impacts, low-carbon economy Action Plan Framework for Adaptation to CC in the Agriculture & Rural Development Sector (2008-2020) National Strategy for Disaster Prevention, Response and Mitigation 2020 (adopted in 2008)

  24. ADB, and the “AgenceFrançaise de Développement” The Clean Technology Fund (CTF) Investment Plan (2010- 2013) The governments of Vietnam, Finland and the Netherlands (grants), the WB (credit) ADB’s Trust Fund for Forests (2006-2014) • enhance rural livelihood opportunities, strengthening capacity of water-related service providers • sustainable forest management; and ADB Small Grant for Adaptation Project • US$ 3.195 billion (government, MDB, carbon finance and private sector) • 6-years project conservation of biodiversity Vietnam Diverse financing:

  25. United States Agency for International Development (USAID) GEF’s SCCF (2010-2014) and GEF Trust Fund • Climate Adaptation and Mitigation Strategies (biodiversity conservation). 2010-2014. US$ 34,000,000 Vietnam • climate-resilient development planning and biodiversity Diverse financing:

  26. The Vietnam Environmental Protection Fund (VEPF) The Vietnam Conservation Fund (VCF) funded by GEF, EC The Trust Fund for Forests, and Forest Protection and Development Fund (FPDF) Vietnam 3 major National Trust Funds

  27. UN REDD in Vietnam REDD+ activities outlined in the Readiness Preparation Plan. 2010-2013. US$ 3,619,000 Potential revenues from REDD+: about US$ 80-100 million per year Challenges • inconsistency in forest definition, • land use classification , • insufficient capacity for MRV, • lack of coordination for data discrepancy and sharing, and insufficient financing support JICA, EU and the Finland-FAO Forest Partnership are assisting Vietnam to fully utilize its REDD+ potential

  28. Voluntary Market Clean Development Mechanism (CDM) • Increasing number of CDM projects: 34 CDM projects registered • Vietnam ranks 11th globally in registered CDM project quantity and 8th in issued CERs amount Carbon Market • Private sector increasing interest in developing forest carbon projects Numerous CC financing in Vietnam Need to address the legal issues related to land tenure, speed up the REDD+ implementation process, and take full ownership of the multiple CC related initiatives in the country.

  29. Thanks! Patricia Gorin Climate Change and Environment Officer FAO Rome, Investment Centre (TCID) Patricia.Gorin@fao.org

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