Blue Carbon Market In Viet Nam Potential And Challenges For Future Development

Key messagesThis infobrief discusses the status, opportunities and challenges of incorporating blue carbon into the Nationally Determined Contributions (NDCs) of 13 Asia-Pacific countries (Bangladesh, Cambodia, Fiji, Indonesia, Malaysia, Myanmar, Papua New Guinea, Philippines, Samoa, Sri Lanka, Thailand, Vanuatu and Vietnam). While the role of mangroves is fully recognized in all countries' climate-change and environmental policies, only three (Indonesia, Malaysia and Philippines) explicitly referred to blue carbon terminology in their policies and established a national agency responsible for the development of a blue carbon strategy.The challenges associated with incorporating and implementing blue carbon into the NDCs of these 13 countries include a lack of data and standard methodology; weak technical capacity; a lack of coordination between government agencies and sectors; overlapping mandates and inconsistent policies; the increasing degradation of coastal wetland ecosystems; as well as funding constraints for developing and implementing policies and practices in programs focusing on the conservation of blue carbon ecosystems.Nevertheless, opportunities exist as stakeholders increase their understanding and awareness of blue carbon's role and importance at an international, national and sub-national level.The factors that can help stakeholders to seize these opportunities and contribute to the restoration of blue ecosystems include more policy and technical guidance for blue carbon management and reporting; further capacity enhancement; and improved coordination and information sharing among the relevant actors.

Bringing together a large set of data and building on two years of consultations in Vietnam with Government counterparts, research organizations, state-owned enterprises, private sector and Vietnam international development partners, the report formulates two scenarios to explore and analyze Vietnam's options up to the year 2030: a business as usual and a low carbon development scenario. Based on a thorough data modeling effort for the key carbon emitting sectors of Vietnam, the report also provides some policy guidance for the Government’s consideration. This report is also unique as it brings together and presents data on multiple sectors of Vietnam's economy, making this information available for future reference. This effort is the result of two years of collaboration with the Government of Vietnam as part of the Vietnam Low Carbon Options Assessment technical assistance. By highlighting several economic opportunities and clarifying the issues at hand, this work is a milestone in this complex debate and I believe will help all stakeholders willing to consider and responsible to design the policies and measures to address those challenges.

Vietnam is acknowledged to be REDD+ pioneer country, having adopted REDD+ in 2009. This paper is an updated version of Vietnam’s REDD+ Country Profile which was first published by CIFOR in 2012. Our findings show that forest cover has increased since 2012, but enhancing, or even maintaining, forest quality remains a challenge. Drivers of deforestation and degradation in Vietnam, including legal and illegal logging, conversion of forest for national development goals and commercial agriculture, weak law enforcement and weak governance, have persisted since 2012 up to 2017. However, with strong political commitment, the government has made significant progress in addressing major drivers, such as the expansion of hydropower plants and rubber plantations.Since 2012, Vietnam has also signed important international treaties and agreements on trade, such as Voluntary Partnership Agreements (VPAs) through the European Union’s (EU) Forest Law Enforcement. These new policies have enhanced the role of the forestry sector within the overall national economy and provided a strong legal framework and incentives for forestuser groups and government agencies to take part in forest protection and development. Nevertheless, new market rules and international trade patterns also pose significant challenges for Vietnam, where the domestic forestry sector is characterized by state-owned companies and a large number of domestic firms that struggle to comply with these new rules.The climate change policies, national REDD+ strategy and REDD+ institutional setting has been refined and revised over time. However, uncertain and complex international requirements on REDD+ and limited funding have weakened the government’s interest in and political commitment to REDD+. REDD+ policies in Vietnam have shown significant progress in terms of its monitoring, reporting and verification (MRV) systems, forest reference emission levels (FREL), and performance-based and benefit-sharing mechanisms by taking into account lessons learnt from its national Payment for Forest Environmental Services (PFES) Scheme. Evidence also shows increasing efforts of government and international communities to ground forestry policies in a participatory decision-making processes and the progress on developing safeguarding policies in Vietnam between 2012 and 2017 affirms the government’s interest in pursuing an equitable REDD+ implementation. Policy documents have fully recognized the need to give civil society organizations (CSOs) and ethnic groups political space and include them in decision making. Yet, participation remains token. Government provision for tenure security and carbon rights for local households are still being developed, with little progress since 2012.The effectiveness of REDD+ policies in addressing drivers of deforestation and degradation has not be proven, even though the revised NRAP has recently been approved. However, the fact that drivers of deforestation and degradation are outside of the forestry sector and have a strong link to national economic development goals points to an uneasy pathway for REDD+. The business case for REDD+ in Vietnam has not been proven, due to an uncertain carbon market, increasing requirements from donors and developed countries, and high transaction and implementation costs. Current efforts toward 3Es outcomes of REDD+ could be enhanced by stronger political commitment to addressing the drivers of deforestation from all sectors, broader changes in policy framework that create both incentives and disincentives for avoiding deforestation and degradation, cross-sectoral collaboration, and committed funding from both the government and developed countries.

Asia and the Pacific has achieved rapid economic expansion in the recent years and has become a major source of greenhouse gas (GHG) emissions. With more than half of the world’s population and high rates of economic growth, the region is especially vulnerable to the effects of climate change and therefore must play its part in cutting GHG emissions. The Paris Agreement adopted last December 2015 at the United Nations Framework Convention on Climate Change COP21 aims to restrict global warming to well below 2°C above preindustrial levels and to pursue efforts to reach 1.5°C---which is especially relevant to Asia and the Pacific region given its vulnerability. This knowledge product highlights how robust policies on emissions trading systems (ETS) can be important tools in reducing GHG emissions in a cost-effective manner, as well as supporting the mobilization of finance together with deployment of innovative technologies. There are currently 17 ETSs in place in four continents and account for nearly 40% of global gross domestic product. In Asia and the Pacific region, there are 11 systems operating, with more being planned. The growing wealth of experience on ETSs can be valuable to support DMCs that are planning and designing new systems of their own. This knowledge product summarizes some of the most significant learning experiences to date and discusses some of the solutions to alleviate challenges that have been faced. It also examines the possibilities for future linked carbon markets in the region.

This report explores the potential for mitigating the impacts of climate change by improved management and protection of marine ecosystems and especially the vegetated coastal habitat, or blue carbon sinks. The objective of this report is to highlight the critical role of the oceans and ocean ecosystems in maintaining our climate and in assisting policy makers to mainstream an oceans agenda into national and international climate change initiatives. While emissions' reductions are currently at the centre of the climate change discussions, the critical role of the oceans and ocean ecosystems has been vastly overlooked.

This book presents good practices in Asia and ASEAN countries for effectively promoting advances in response to climate change, which can help to achieve sustainable development in Asia and around the world. As a proposal, the aim is to influence the discussions at COP 21 by providing a positive agenda with concrete actions from an Asian perspective. The book is divided into three parts. Part 1 describes the greenhouse gas (GHG) reduction scenario from an Asian perspective and in line with global 2 ° targets. Based on modeling analysis, the studies demonstrate the theoretical potentials and send the policymakers at COP 21 the positive message that “Asia can reach the target.” As Asian countries vary in terms of their economic strength, country-specific scenario studies for the two giants China and India as well as for Japan and Vietnam are introduced to show the different approaches for each country. Part 2 shows successful examples of how modeling analysis are reflected in actual policy development, which provides practical guidelines to help policymakers develop their own roadmaps with stakeholder dialogue, not only in Asia but also in other regions of the world. The Nationally Appropriate Mitigation Action (NAMA) roadmap development in Thailand as well as the Iskandar Malaysia project show at the country and city level how researchers and policymakers are working closely to succeed. Part 3 focuses on a number of sector-specific activities including transportation, forestry, capacity development, and inventory work in Asia. Rather than discussing the Low Carbon Society (LCS) concept in detail, the respective chapters highlight unique, concrete, and practically applicable examples from Asia, showing how Asian countries are addressing climate change mitigation issues in a collaborative manner, an approach that can be replicated in other regions. While the ultimate goal of this book is to facilitate international climate regime making, local government and international organizations (United Nations, World Bank, and others) officers, researchers, international NGO/NPOs, consultants, students (particularly those studying international relationships or environmental studies), as well as reporters will find this book useful in broadening their understanding of low-carbon development in Asia.