Viet Nam Green Growth Strategy!

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Support towards! Viet Nam Green Growth Strategy! in Thanh Hoa Scott Muller Low Emissions Asian Development (LEAD) Program Institute for Sustainable Communities (USAID Contractor) Thanh Hoa, Vietnam 11 December, 2013

VGGS in Thanh Hoa Work Shop Outputs: Outline Potential Next Steps in Developing Green Growth in Thanh Hoa. Preliminary GG Stakeholder Analysis and GG Engagement Plan. Agenda: Green Growth Overview & Components Case Examples Steps for Moving Green Growth into Practice! Working Group Sessions What are the Next Steps in Developing GG in Thanh Hoa Province? Stakeholder Analysis and GG Engagement Plan

What is Green Growth? an important tool for achieving sustainable development. (Rio +20)! Green Growth should contribute to eradicating poverty as well as sustained economic growth, enhancing social inclusion, improving human welfare and creating opportunities for employment and decent work for all, while maintaining the healthy functioning of the earth s ecosystems. (UNCSD, 2012)

What is LED? The ultimate aim of a low-carbon development strategy [as a species of green growth strategy] is to catalyze concrete actions that support development, but with less emissions than without intervention. (Van Tilberg et al, 2011)

What is Green Growth? S. Muller

What is LED? Bangladesh $120,000,000,000 Bangladesh: GDP (US$) 70,000 $90,000,000,000 52,500 $60,000,000,000 35,000 $30,000,000,000 17,500 $0 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 0 GDP (current US$) GDP (current US$)

What is LED? Bangladesh $120,000,000,000 Bangladesh: GDP (US$) vs. GHG Emissions (kt CO2) 70,000 $90,000,000,000 52,500 $60,000,000,000 35,000 $30,000,000,000 17,500 $0 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 0 GHG Emissions (ktco2) GDP (current US$) CDIAC http://cdiac.ornl.gov GHG Emissions (kt CO2) GDP (current US$) World Bank Data http://data.worldbank.org

What is LED? Thailand $400,000,000,000 Thailand: GDP (US$) vs. GHG Emissions (kt CO2) 400,000 $300,000,000,000 300,000 $200,000,000,000 200,000 $100,000,000,000 100,000 $0 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 0 GHG Emissions (ktco2) GDP (current US$)

What is LED? Indonesia $900,000,000,000 Indonesia: GDP (US$) vs. GHG Emissions (kt CO2) 500,000 $675,000,000,000 375,000 $450,000,000,000 250,000 $225,000,000,000 125,000 $0 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 0 GHG Emissions (ktco2) GHG Emissions (kt CO2) GDP (current US$) GDP (current US$)

Singapore s National Climate Change Strategy What is LED? Singapore Singapore's Past CO2 Emissions (1990-2005) CO2 (kt) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Key: Absolute CO 2 Emissions 1990 1991 1992 1993 1994 1995 1996 1997 1998 Year 1999 2000 2001 2002 2003 2004 2005 0.350 0.300 0.250 0.200 0.150 0.100 0.050 0.000 CO 2 Intensity (CO 2 emissions per dollar GDP)

What is LED? $16,000,000,000 Cambodia: GDP (US$) vs. GHG Emissions (kt CO2) Cambodia 5,000 $12,000,000,000 3,750 $8,000,000,000 2,500 $4,000,000,000 1,250 $0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 GHG Emissions (ktco2) GHG Emissions (kt CO2) GDP (current US$) GDP (current US$)

What is LED? Korea $1,200,000,000,000 Korea: GDP (US$) vs GHG Emissions (ktco2) 600,000 $900,000,000,000 450,000 $600,000,000,000 300,000 $300,000,000,000 150,000 $0 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 0 GHG Emissions kt (ktco2) GDP (current US$) GDP (current US$)

What is LED? Viet Nam $160,000,000,000 Vietnam: GDP (US$) vs. GHG Emissions (kt CO2) 180000 $120,000,000,000 135000 $80,000,000,000 90000 $40,000,000,000 45000 $0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 0 GHG Emissions (ktco2) GHG Emissions (kt CO2) GDP (current US$) GDP (current US$)

Green Growth -High Level Examples Korea Ethiopia China Germany Mexico Cambodia S. Muller

Common Steps - Developing a GG Approach Vision VGGS Participatory Strategy Low Carbon Growth Greening Production Greening Lifestyles Action By 2020: Increase GDP per capita 100% (vs. 2010) Reduce BTUs:GDP by 2%/yr Reduce GHG:GDP intensity by 8-10%

Subnational Green Growth Scenarios No Impact 1. No impact 2. Sectoral displacement Positive Growth 3. Green sector growth 4. Economic greening 5. Multi-sector growth Negative Growth 6. Economic stagnation/ de-growth * Hammer, S. et al (2011) Cities and Green Growth, A Conceptual Framework. OECD

6 Subnational Green Growth Scenarios Scenario 1: No Impact A - Total Economy B - Traditional Sector C - Green Sector C B A * Hammer, S. et al (2011) Cities and Green Growth, A Conceptual Framework. OECD

6 Subnational Green Growth Scenarios Scenario 2: Sectoral Displacement A - Total Economy D C - Green Sector D - Growth Green Sector B->G - Losses in Traditional Sector C B G A * Hammer, S. et al (2011) Cities and Green Growth, A Conceptual Framework. OECD

6 Subnational Green Growth Scenarios Scenario 3: Green Sector Growth A - Total Economy B - Traditional Sector C - Green Sector D - Growth Green Sector E - Economic Growth D C B * Hammer, S. et al (2011) Cities and Green Growth, A Conceptual Framework. OECD A E

6 Subnational Green Growth Scenarios Scenario 4: Economic Greening A->E - Total Economy B->F Traditional Sector C - Green Sector C B F A E

6 Subnational Green Growth Scenarios Scenario 5: Multi-Sector Growth A->E - Total Economy B->F Traditional Sector Growth C->D - Green Sector Growth D C B F * Hammer, S. et al (2011) Cities and Green Growth, A Conceptual Framework. OECD A E

6 Subnational Green Growth Scenarios C->D Green Sector Growth B->G Traditional Sector A>H Contraction of Economy Scenario 6: Economic Stagnation/ De-growth C D B G H * Hammer, S. et al (2011) Cities and Green Growth, A Conceptual Framework. OECD A

Green Growth Overview & Components

Challenges to Green Growth & LED New Approaches in Some Sector Appreciate environmental quality Change consumer attitudes Economic approach beyond GDP Increased Investment Urban infrastructure Electricity generation Energy efficiency Requires Behavioral Change & Choice How much will it cost? Social impacts?

Challenges to Green Growth & LED New Approaches in Some Sector Increased Investment Requires Behavioral Change & Choice Market Failures Appreciate environmental quality Change consumer attitudes Economic approach beyond GDP Perverse Incentives Urban infrastructure Political Barriers Electricity generation Energy efficiency Institutional Barriers Social System Barriers How much will it cost? Social impacts?

Common Steps - Developing a GG Approach Vision Strategy Action Planning and Coordination!!! Analysis and Communication!!! Development and Implementation of integrated policy portfolios

Steps to put Green Growth into Practice Planning & Coordination 1. Planning and Coordination 2. Monitoring and Evaluation 3. National and Sub-national Integration Analysis & Framing 4. Benefits Assessment 5. High-Level Vision, Targets, and Baselines 6. Options Analysis Pathways and Scenarios Policy and Implementation 7. Policy Design 8. Public - Private Collaboration 9. Financing Strategies

Planning & Coordination 1. Planning and Coordination 2. Monitoring and Evaluation 3. National and Sub-national Integration Complex Integration of Processes and Political Decisions Preliminary Studies & Assessments Fact Finding Recommendations: Implementation Structural Policy Changes Institutional Changes

Planning & Coordination Most Important: Process Design Are designed to avoid/deal with barriers Start carefully with maximum buy-in and ownership of all key players Are supported by leadership as high up as possible Are motivated by indigenous self-interest.

Planning & Coordination 1. Planning and Coordination 2. Monitoring and Evaluation 3. National and Sub-national Integration * Forthcoming GGBP Assessment Report

the entire ASEAN urban population will reside in only five Mega-Urban-Regions (MUR) 2 : the Bangkok-centered MUR (30 million); the Kuala Lumpur-Klang MUR (6 million); the Planning & Coordination Singapore Triangle (10 million); the Java MUR (100 million); and the Manila MUR (30 million). Nevertheless, despite this concentration of populations in MURs, it is the second and higher tier cities of ASEAN that are urbanizing the fastest. 1. Planning and Coordination 2. Monitoring and Evaluation 3. National and Sub-national Integration Asia Urbanization Trends 3 % of Population Living in Urban Areas 1950 2005 2030 Cambodia 10 20 37 Indonesia 12 48 68 Lao PDR 7 22 38 Malaysia 20 65 78 Philippines 27 63 76 Thailand 17 33 47 Vietnam 12 27 43 percent o 65 years, proportio 1970 to 2 8 percen Studies in have sho been attr distributi and they domestic ASEAN, GDP is ar more tha Hong Kon rates, as GDP is n

Analysis & Framing 4. Benefits Assessment 5. High-Level Vision, Targets, and Baselines 6. Options Analysis Pathways and Scenarios Planning Cycle as Top Down Process Stakeholder Engagement Vision Pathway Sector/ Tech priorities Policies & Implementation strategies Tools Tools Tools Tools * Forthcoming GGBP Assessment Report

Analysis & Framing 4. Benefits Assessment 5. High-Level Vision, Targets, and Baselines 6. Options Analysis Pathways and Scenarios Planning Cycle as Bottom Up Process Stakeholder Engagement Identification of GG options/ B-U Sectoral plans Prioritization Strategy Tools Tools Tools * Forthcoming GGBP Assessment Report

Policy and Implementation Outcome & Delivery 7. Policy Design 8. Public - Private Collaboration 9. Financing Strategies Degree of Government Leadership Degree of Private Leadership Mostly Public Discretion Government control and contract for service Shared Discretion Collaborative Governance: Private Role for Public Goal Mostly Private Discretion Breakthrough Capitalism: Public Role for Private Goal * Forthcoming GGBP Assessment Report

Support towards! Viet Nam Green Growth Strategy! in Thanh Hoa @ScottA_Muller Low Emissions Asian Development (LEAD) Program Institute for Sustainable Communities (USAID Contractor) Thanh Hoa, Vietnam 11 December, 2013

Green Growth Components What are the Next Steps in Developing Green Growth in Thanh Hoa?! " Stakeholder Analysis and Green Growth Engagement Plan?!

Next Steps: GG Strategies in Thanh Hoa Planners What planning and coordination processes will be most effective for delivering GG in Thanh Hoa? What M&E approaches will best inform policy learning and implementation? What approaches to advancing GG at the provincial level will be most effective at achieving coordination and ambition? " Analysts What approaches for assessing and communicating the benefits of GG will be most successful at gaining decision-maker and stakeholder support? Which approaches to setting high-level visions, targets and baselines will be most effective to support the design of feasible GG programmes? What approaches to prioritizing options and pathways will be most successful to support he design of feasible GG programmes?

Next Steps: GG Strategies in Thanh Hoa Policy Makers What cross cutting policies and policy portfolios will be most successful to generate near term benefits while enabling longer term social and economic transformation? What approaches to public-private collaboration will be most successful to mobilize private sector leadership? What financing strategies will be most effective to mobilize resources for GG?

Stakeholder Analysis High Keep Satisfied Manage Closely Power Low Monitor (minimum effort) Keep Informed Low Interest High