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May 22, 2012

Special edition  » Green development

One step at a time

Nghiem Vu Khai, vice chairman of the National Assembly’s Science, Technology and Environment Committee, urges Vietnam to pursue policies to build a low-carbon economy to reduce its greenhouse gas emissions (GHG) and develop an environmentally-friendly energy industry.

Climate change is now one of the government’s and international donors’ biggest concerns. What are your opinions about Vietnam’s necessity to build a low-carbon economy to cope with climate change?

Nghiem Vu Khai

Though Vietnam is not an economy with big GHGs, it is becoming one of few countries in the world the most vulnerable to climate change, particularly sea level rises.

The Ministry of Natural Resources and Environment has forecasted that if the sea level rose by one metre at the end of this century, Vietnam would likely lose as many as 40,000 square kilometres due to flooding or salt intrusion. Sea level rise would also seriously affect many infrastructure works such as roads, schools, hospitals, bridges, sewers and sea ports. It is estimated that Vietnam would likely lose about 10 per cent of its gross domestic product due to this catastrophe.

To cope with such a situation, Vietnam’s government has been building legal frameworks and policies to cope with climate change and build a low-carbon economy, with targets stressed on re-structuring and driving the economy on a path with effective use of energy and natural resources through the application of environmentally-friendly technologies that have little GHG emissions. The targets also go to limit and gradually get rid of backward technologies consuming much energy, while boosting the use of renewable energy and plantation of forests. The low-carbon economy must be built in tandem with the creation of public environmentally-friendly consumption habits. The building of a low-carbon economy is the target, the measure and the driving force to accelerate the national industrialisation and modernisation.

What challenges and advantages will Vietnam have in its drive to a low-carbon economic status, while it must keep or even accelerate its economic growth?

Vietnam is mapping out its socio-economic development strategy for the next decade. Thus the construction and pursuit of a low-carbon economic status will be a good input for this strategy, particularly when Vietnam is stressing the restructuring of its economy.

However, the construction of a low-carbon economy is faced with certain obstructions. Specifically, the country is challenged by boosting its economic growth while its capacity in controlling GHG emissions remains limited and its backward technology is prone to big GHG emissions.

Moreover, the country’s mechanisms and policies for building a low-carbon economy remain nascent and the public awareness of developing a low-carbon economy also remains limited.

However, the country also has many advantages. Its high economic growth, social progress and poverty reduction achievements, as well as the effective use of international aids are what can facilitate it to develop a low-carbon economy and encourage foreign countries and international donors to continue assisting Vietnam.

Moreover, Vietnam is led by good leadership and its people can make big changes when they have fully understood the importance and significance of the construction of a low-carbon economy.

How has the building of a low-carbon economy been discussed via the National Assembly’s agenda?

So far, the building of a low-carbon economy has yet to be stipulated in any exclusive legal document of Vietnam. However, in the country’s many legal documents on environment, science, technology, investment, tax and energy, there are some regulations encouraging investments, production and trading related to environmental protection, sustainable development and coping with climate change.

Many National Assembly deputies are showing growing interest in this problem. They have even asked the National Assembly to promulgate an exclusive resolution on climate change responses and building a low-carbon economy, so that a firm legal foundation can be created for state agencies, organisations and individuals to take actions about this problem. I am fully in favour of this opinion.

At its on-going seventh session, the 12th National Assembly is considering the Law on Energy Efficiency and Conservation, which is a very important legal document which will greatly contribute to Vietnam’s building a low-carbon economy. It stipulates the conservation and effective use of energy, the policies and measures to boost the effective use and conservation of energy. At the same time, the law also prescribes the rights and obligations of organisations, enterprises, households and individuals in effectively saving and using energy.

What programmes, projects and policies have Vietnam’s government issued to lure investment into clean energy and environmentally-friendly projects to cope with climate change?

Policies on coaxing investments into clean energy and environmentally-friendly projects and into climate change have already been penned in many laws and other legal documents. Laws on investment, enterprises, incorporate income tax, high technology and technology transfer have all stipulated the highest priorities on land lease, taxes and credit and other priorities offered to activities related to investment, scientific research, development and transfer of technology to enterprises, organisations and individuals, so that they can invest in high-tech research and environmentally-friendly technology, with the common target to cope with climate change and build a low-carbon economy.

At the same time, Vietnam has already had some national programmes such as the national programme for high technology development, the national target programme for climate change response and the national programme for energy sufficiency and conservation. There have also been some funds on scientific and technological development, technology transfer and environmental protection, which greatly support the country’s production and application of environmentally-friendly technology and clean production technology.

However, the effectiveness of these programmes and funds is not high. I think that it is necessary to revise the country’s policy systems and the use of these resources so that Vietnam can issue an exclusive detailed legal document system and re-organise these funds, programmes and projects to reach its specific and practical targets.

What must developed countries do to support developing countries like Vietnam to develop a clean energy industry and respond to climate change?

Developed countries are responsible for the majority of GHG emissions. So, they have to be responsible for supporting developing countries, particularly those countries under the most climate change stress like Vietnam, so that they can effectively respond to climate change and build a low-carbon economy. Developed countries’ support need to be focused as follows:

- Building the capacity in forecasting climate change influences.

- Perfecting feasible policies and solutions suitable to Vietnam’s situations.

- Sharing information, experience and transferring clean, environmentally-friendly technology.

- Training human resources, enhancing local management bodies’ management capacity and the public awareness.

I hope that we need to take measures to mobilise and more effectively use aid granted by foreign countries and international donors. Besides, Vietnam also needs to enhance its internal strength and take the initiative in enhancing its bigger role in the international community’s efforts to build a common low-carbon economy and cope with climate change. Vietnam must try to create its self-saving capacity and share experiences with those countries suffering the same plight as it does.

What policies have Vietnam’s government issued to encourage the research and development of renewable energy projects?

Vietnam has considered the exploitation and use of renewable energy as a big policy, which is prescribed in many documents of the country’s Party and state, such as the national environmental protection strategy and the government’s Agenda 21 on sustainable development. The use of renewable energy can greatly contributed to reducing the consumption of non-renewable energy and ensuring the national energy security in the most stable manner.

However, achievements reaped from the renewable energy sector remain limited due to insufficient investment.

Vietnam’s government is considering an exclusive decree on renewable energy use, the first of this type in the country. This is an important systematic legal document which encourages the research, investment, production and use of renewable energy in Vietnam. But, as a decree, it cannot stipulate special policies as the current laws can. Thus, the government needs to submit a law on renewable energy to the National Assembly as soon as possible, so that Vietnam can have a firm legal foundation to encourage the use of this type of energy.