Private Sector Needs More Room to Participate in Green Growth

11:26:18 PM | 5/5/2014

Vietnam is one of the countries in the world expected to be most seriously impacted by climate change on nature, environment and people in the near future, according to scientists. Before this challenge and threat, the Vietnamese Ministry of Planning and Investment recently held a conference to announce the National Action Plan for Green Growth and work with relevant agencies and international organisations to find solutions to these problems.
Deputy Minister of Planning and Investment, Nguyen The Phuong, said the Government of Vietnam always considers green growth an important goal in the cause of industrialisation and modernisation. Besides, it very much expects international communities, domestic and foreign development organisations focus on cooperation and mutual assistance in the fight against climate change.
 
At the conference, Deputy Minister Nguyen The Phuong gladly informed that the National Action Plan for Green Growth in the 2014-2020 period was approved by the Prime Minister on March 20, 2014. This expressed viewpoints, strategies and solutions for ministries, branches and localities to implement. The action plan comprises of four main themes, 12 working groups, and 66 specific action missions.
 
Accordingly, Theme 01 is building institutions and plans for green growth in localities, including eight activities classified into two groups. Theme 02 is reducing intensity of emitting greenhouse gases and promoting clean energy and renewable energy, including 20 activities in four groups: Using energy economically and efficiently and reducing the intensity of greenhouse gas emissions in energy-consuming industries; Transporting; Renovating farming techniques and perfecting management to reduce the intensity of greenhouse gas emissions in agriculture, forestry and fisheries; and Developing clean energy and renewable energy sources. Theme 03 is greening production, including 25 activities in four groups: Reviewing and proposing adjustments to development and construction strategies and plans in pro-green economic restructuring; Using natural resources effectively and sustainably and developing green economic areas; Developing sustainable infrastructure; and Promoting the pro-green "business sustainability". Theme 04 is greening lifestyle and sustainable consumption, including 13 activities in two groups: Developing green urban zones; and Promoting green lifestyle.
 
Funding will come from various sources like the State budget, from target programmes like Climate Change Response Programme, from enterprises, from the community and from international aid. Central and local governments, based on their functions and tasks assigned, will be responsible for mobilising and administering funding resources. The Government will give adequate priority and budget for implementing the Action Plan for Green Growth, particularly for improving energy efficiency and developing renewable energy; and will create a legal basis to encourage financial institutions and businesses to invest resources to carry out activities of the Action Plan.
 
Regarding organisational structure, the Ministry of Planning and Investment was assigned by the Government to lead green growth, chair and coordinate relevant central and local bodies to execute. In addition, it has worked with five other ministries and three localities to determine overall needs using MACC researches and referring to guidelines of OECD, LEDS, GGGI and UNEP; review resources and consider access to climate financial funds and green climate funds; prepare conditions for green investment like setting up working groups, climate financial information foundations, and draft framework instructions for province-level Action Plan for Green Growth. The Green Growth Support Fund, which will last 72 months, starting in August 2013, has a total budget of EUR5.5 million, of which the Government of Belgium funded EUR5 million and the Government of Vietnam contributed EUR500,000.
 
Nguyen Phuong Bac, Deputy Director of Bac Ninh Provincial Department of Planning and Investment, in implementing its green growth strategies, the province encouraged businesses to use non-baked materials, reduce greenhouse gas emissions and conserve energy. He noted that businesses are the No. l priority in Vietnam’s green growth strategy. Therefore, they must be the first to be informed of technological change, and investment for application of new environment-friendly technologies in order to minimise greenhouse gas emissions.
 
He also appreciated contributions and cooperation of international partners such as the World Bank (WB), the USAID, Belgium and South Korea for their resources, technical support and experience in the process of consulting, drafting and ratifying the Strategy and Plan for Green Growth. He stressed the Government of Vietnam’s commitments to actively implement international treaties on climate change and green growth at the highest level.
 
Mr Pham Hoang Mai, Director of the Department of Science, Education, Natural Resources and Environment under the Ministry of Planning and Investment, also put forth the necessity to formulate the legal framework for the formation of action plans and priority projects for prevention of climate change and promotion of green growth; build market mechanisms to create funding sources for green growth; enhance capacity and strengthen existing organisations; mobilise financial sources; and ask the WB to serve as a lead agency to assess aids allocated to ministries, branches and localities participating in green growth objectives. Regarding operating mechanism, he hoped that the Government of Vietnam will strengthen its coordination with international partners and allow the private sector to invest in more green growth sectors to obtain a greater synergy of forces.
 
Anh Phuong