Accelerating Private Sector Engagement in Climate-Resilient and Low-Emission Investment Opportunities in Viet Nam’s NDC 2019-2023

 

Project Summary

Viet Nam will be unable to meet its national and global climate change commitments without significantly stepping up investment and engagement by the private sector.

The project aims to actively encourage the private sector to finance, support, and implement technically sound, financially viable, risk-informed mitigation and adaptation action in support of Viet Nam’s emerging NDC targets.

In order to achieve this objective, the private sector community in Viet Nam, particularly in the agricultural sector, will benefit from three major lines of supporting services/facilities provided by the project:

  • Innovation platform and partnership for private sector engagement in NDC
  • Finance, technology, and policy catalyzation for prioritized investment projects for long-term, low-carbon, and resilient investment
  • Evidence-based policy incentives to advance private sector investment opportunities in NDC

The majority of the project's targeted groups are or will be micro, small and medium enterprises, including associations of smallholder farmers; cooperatives and pioneer firms who are interested in promoting green agricultural products and supply chains. Women entrepreneurs are being encouraged and engaged in project planning sessions with UNDP and MARD. These targeted businesses are often the key sources of employment and, therefore income, for many vulnerable, poor, and disadvantaged people.

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Project Objectives

The overall project objective is to advance private sector financial engagement to support and implement technically sound, financially viable and risk-informed mitigation and adaptation actions in line with Viet Nam's NDC.

Specifically, the changes are made by delivering the four (04) expected outcomes:

  • Productivity and Competitiveness of Agriculture Sectors and its supply chains are advanced with sustainable resilient low emission innovations;
  • Strengthen Platform for Private Sector Innovation and Investments to support technology transfer and track contributions to NDC targets;
  • Establish Sustainable Finance Mechanisms to scale up NDC mitigation and adaptation actions;
  • Create Policies and Incentives which advance private sector investment opportunities in national plans.

Key Achievements

2022: Viet Nam NDC Support Programme Update for 2022 (Infographic)

In Binh Thuan: 

  • Provide (i) knowledge on green & environment-friendly production & (ii) financial support to replace halogen or fluorescent lighting with LED light bulbs, which are specially designed for dragon fruit farming to save energy
  • Support in developing business e-commerce platforms
  • Review local policies for private sector engagement in the green dragon fruit work

In Bac Lieu: 

  • Sign a new Letter of Agreement between UNDP and the Bac Lieu Agriculture Extension Center
  • Validate and select project beneficiaries, including agricultural cooperatives and businesses
  • Organise 03 orientation trainings on greening shrimp production for the beneficiaries of ~100 farmers (53% female, 70% ethnic minority Kh’mer)
  • Provide technical assistance for (i) Viet Nam's national climate change strategy to achieve net-zero emissions and enhance climate change resilience by 2050; and (ii) Viet Nam NDC for 2022.
  • Support the Government in developing the first-ever Viet Nam National Adaptation Plan for submission to the UNFCCC.
  • Propose an assessment of Carbon Capture, Storage & Use and Green Hydrogen; and align the National Climate Change Strategy and the Eighth Power Development Plan - two core GHG reduction policies of Viet Nam.
  • Publish the Special Report on Youth for Climate Action in Viet Nam 2022, which was co-written by twenty-four young authors from across the nation. The report took stock of youth activities, updated the Special Report and the Youth4Climate Roadmap, and formulated concrete actions for youth to contribute to the net-zero commitment.
  • Carbon footprint trackers are applied in dragon fruit and shrimp supply chains to support local businesses.
  • Complete the Direct Lending Regulation and related operation procedures, including independent technical appraisal by the ministries. The final draft was submitted to MPI's Vice Minister for final review at the end of December 2022.
  • Organise a workshop on Post COP27 - Opportunities for Agriculture, Forestry and Land Use from climate policies.

2021: Viet Nam NDC Support Programme Update for 2021 (Infographic)

  • Updated the National Climate Change Strategy according to the NDC update targets identified in July 2020, in collaboration with the Ministry of Natural Resources and Environment.
  • Wrote two thematic reports: 1) International experience in formulation and implementation of climate change strategies and the global context; and 2) Enhancing the role of the private sector to contribute to the implementation of the National Climate Change Strategy and NDC.
  • Finalized two 3-year roadmaps to support environmentally friendly supply chains of Binh Thuan dragon fruit and Bac Lieu shrimp. These roadmaps were constructed by consulting with stakeholders from the local level: regulatory bodies, typical farming households and businesses all related to local supply chain development.
  • April: Supported Binh Thuan farmers Green Recovery innovation during Covid-19 by their a farm-to-table campaign - selling dragon fruit products via e-commerce.  
  • May: Published the Special Report, “Youth for climate action in Viet Nam” under the “Climate Promise” programme. The report was co-written by 20 outstanding youth representatives from all regions of the country. The report outlines four challenges faced by youth undertaking climate action and introduces a concrete action plan for COP26 to enhance youth capacity and contributions.
  • Design the “Climate Change Learning Hub” - a centralized platform where anyone can find documents and information about climate change, climate science and climate policy, specifically tailored for the youth and young entrepreneur audience. After 6 months, more than 600 youth have joined the Y4C Learning Hub community in May 2021.
  • October: Agreed to a three-year partnership with Binh Thuan and Bac Lieu People's Committee on greening agricultural commodities with an endorsement from MARD.
  • November: Trained green aquaculture farming practices and co-financed the first winner of the Green Innovation Shrimp Contest in Bac Lieu.
  • December: Organized (i) a high-level meeting on the outcomes of COP26 - Action from Viet Nam and (ii) a consultation workshop analyzing the global and national context and implications on Viet Nam's Climate Change Strategy of achieving net-zero by 2050.

2020:  Viet Nam NDC Support Programme Update for 2020 (Infographic)

  • Launched a  a voluntary platform - Climate Business Index - for private companies to benchmark and log their contributions to reducing greenhouse gas emissions and addressing climate change impacts.
  • Worked with 02 provinces, Binh Thuan and Bac Lieu, to concretely assess their business gaps, prioritizing key interventions that would shift their business practices to "greener" and more resilient services in the second year.
  • Created a roadmap and identified key priorities for MARD when formulating the Data Hub, which was consulted again with stakeholders in Q2, 2020.  The Data Hub is an instrumental tool to improve the quality and availability of agricultural information, make adaptive policy decisions, support business development, and generally contribute to implementing climate resilient actions in the agricultural sector.
  • Organized an open forum as part of the UNDP-VCCI-CSIP Blue Swallow Award on business initiatives for sustainable development to promote new private sector initiatives on positive social and environmental adaptations to climate change.
  • Coordinated a recovery plan including relevant technical and financial assistance to support "greener" and climate resilient business practices in the most vulnerable and Covid-affected farms and businesses in the Bihn Thuan and Bac Lieu provinces. This project was sponsored by Japan in the second half of 2020.

2019:

  • The inception phase began in August and key action kicked off in November. The project started dialogues with private sector actors doing business in the most climate vulnerable sector, agriculture.

Impact

START DATE

November 2019

END DATE

December 2023

STATUS

Completed

PROJECT OFFICE

Viet Nam

IMPLEMENTING PARTNER

United Nations Development Programme

DONORS

EUROPEAN COMMISSION

GOVERNMENT OF GERMANY

UNDP Funding Windows

UnSpecified

TOTAL CONTRIBUTIONS

$3,973,586

DELIVERY IN PREVIOUS YEARS

2019$0

2020$86,733

2021$250,062

2022$681,553

2023$800,541

Full Project information