Workshop on sharing best practices with conducting TNAsBangkok, Thailand, 27-29 June 2007

The lessons learned and best practices with conducting the

TNA of Viet Nam

Mr. Nguyen Mong Cuong

Research Center for Climate Change

and Sustainable Development

Outlines

1. Introduction

2. Technology needs assessment processes

3. Some lessons learned

Conclusion

1. Introduction Viet Nam (8º27-23º23 N and 102º08-109º30 E)

with the land area of 330,990 km2 located in Southeast Asia.

Three quarters of the land is mountainous and hills with the elevation mostly from 100 to 1000m.

The population of Viet Nam was 77,6 million (2000) with average annual growth rate of 1.36%

It is predominantly an agricultural country with 74% of its population are involved in agriculture, 7.4 million ha of agricultural lands.

The forest areas are 9.3 million ha, forest coverage increases from 27% in 1991 to 33.2% in 2000.

The average annual GDP growth rate was 7.5% during 1990-2004. GDP per capita (2004) 560 USD

Sectoral contribution to GDP (2000):Industry: 36.7%Services: 38.7%Agriculture, Forestry, Fishing: 24.5%

Ministry o f natural resourc es and environment

o f viet nam UNEP/GEF project "Viet Nam: Expedited financing for measures for capacity

building in priority areas (phase II)"

Technical report on the identification and assessment of technology needs for GHG emission reduction and climate change

adaptation in Viet Nam

Ha Noi, November 2005

1. Introduction (Cont’.)

Viet Nam ratified UNFCCC on 16 November 1994 and Kyoto Protocol on 25 September 2002.

MONRE was assigned by the GOV as a national authority for implementation of the UNFCCC & KP.

INC has been submitted to UNFCCC on 2003; under phase II of INC project “The technical report on identification and assessment of technology needs for GHG emission reduction and climte change adaptation in Viet Nam“ has been submitted on 2005

2. Technology Needs Assessment processes

The Project “Expedited financing for measures for capacity building in priority areas in Viet Nam (Phase II)”

• This project is a follow-up to the Initial National Communication project

• The Implementing Organization: International Cooperation Department (ICD) of the Ministry of Natural Resources and Environment (MONRE)

• Duration: July 2004 – September 2005• The objective of the project: enhance capacity and

maintain the efforts to access and disseminate information related to climate change technologies.

Three types of activity are required

for effective TNA

1. Institutional arrangements for stakeholder engagement

2. TNA assessment processes3. Implementation actions

The institutional arrangement of INC Phase II project management

Ministry of Natural

Resources and Environment

International Cooperation Department

(ICD)

Climate Change Country Team

Climate Change Project

Managers

Secretariat Staff Technical Expert Team

GHG inventory

Group

Mitigation Group

V &AGroup

Identified a list of stakeholders who will sustain the implementation process

Organization Sub - bodies Role

MONRE

International Cooperation Dept. National Focal Point Agency

National Environment Agency Environment monitoring

Environment Dept. Environment management

Dept. of Hydrometeorology Hydrometeorology management

National HMS Climate change monitoring

MOIDept. of Energy & Petroleum Energy, RE management

Dept. of Science&Technology EE & ES management

MOSTDept. of Science&Technology of industry Science&Technology development in Industry

Dept. of Science&Technology of Agriculture & forestry

Science&Technology development in Agriculture &Forestry

MPI Dept. of Science, Technology, Education and Environment Project validation

MOFA Dept. of International organizations Focal Point of foreign policies

MOF Dept. of International Cooperation Financing policies, fund, finance incentives

MARD Dept. of AgricultureDept. of Forestry Agriculture, forestry and rural development

MOTDept. of Science &Technology Environment management in transport

Vietnam Register Gases pollution control of transport means

Provinces and cities Local management

Identified sector industries, associations, and distributors involved Enterprises Sub bodies Role

State owned at National level

ENV

Dept. of Science& Technology New tech. introduction

Regional Companies Elec. Transmission and distribution

Dispatching Center Data

Power plants End users

Cement Corporation

Dept. of Science&Technology New tech. introduction

Cement plants End users

VINA SteelDept. of Science&Technology New tech. introduction

Steels plants End users

VINACoalDept. of Science&Technology New tech. introduction

Coal mines End users

PetroVietnamDept. of Science&Technology New tech. introduction

Petro companies End users

VINA PaperDept. of Science&Technology New tech. introduction

Paper & pulp Mills End users

Identified sector industries, associations, and distributors involved (cont’)

Enterprises Sub bodies Role

Other Entities

Provincial level Companies End users

Private sectors

- Domestic companies

- Foreign invested companies

- Joint venture companies

End users

Finance

- State banks

- Private and foreign banks

- Funds

Financing

Foreign

counterparts

- Carbon funds

- Investors

- Carbon buyers

Co-project developers

Criteria for technology needs assessmentCode Key criteria Sub- criteria Criteria content

A Environment protection

A1. GHG reduction potential

The study is specialized in GHG reduction technologies

A2. Local environment quality

Reduction of solid waste, liquid waster and air pollution

A3. Biodiversity and resource conservation

Mineral, water, land, forest and bio- resources

B Economic development

B1. Initial investment Specific investment - Low investment per product

B2. Payback period High IRR

B3. Low O&M cost and intensive

National circumstance

C Good social impacts

C1. Good impacts to socioeconomic- development of locals

Improving local education, health care, job creation, poverty reduction, etc.

C2. Less barrier on prevalence practice, psychology

Good public acceptance and participation

C3. Contributions to science & technology capacity

Better tech. transfer, localization, manpower development.

D Technology Development

D1. Advanced but established tech.

Mature commercialization. No second hand and high adaptability

D2. Appropriate tech ( but established)

Effective deployment, O&M, exploitation

D3. Up scaling tech. Easy apply and dissemination

Key priorities sectors for technology

needs Sectors Sub-sector’s activities

1. Energy production and refining of

fuel ( including power generation)

1. Energy production; 2. Energy transmission and distribution; 3. Production, refining, storage and

transportation of oil and gas; 4. Fugitive gas and gas recover; 5. Renewable energy application

2. Industry 1. Ferric and non-ferric metallurgy; 2. Building materials production; 3. Ore-free mineral products; 4. Chemical

industry; 5. Food industry; 6. Textile

3. Transport Road; Railways; Water transport

4. Household & Service Usage of electrical energy and heat

5. Agriculture 1. Rice cultivasion; 2. Manure management;

3. Residues

6. Forestry 1. Reforestation;

2. Afforestation

No of Technologies reduction GHG emissions have been analyzed

Items SectorsNo. of

technologies

Energy

1.Electricity generation

2.Industry

3.Household and Services

4.Transportation

23

20

9

9

Non-energy

1. Agriculture

2. Forestry

10

14

Priority Technologies identified in the project Energy

1.Solar heating technology 2.Small and medium hydropower 3.Grid-connected biomass-fired for electricity generation 4.High efficiency fire - chamber technologies for coal - fired thermal power plants.5.Combined cycle gas turbines6.Switching from oil, coal fired to gas in the thermal power plants.7.Clean Coal technology8.Oil field associated gas recovery and utilization9.Reduction the electricity loss in transmission and distribution

Industry

1. Change from west to dry process in cement production2. In brick production: Vertical shaft brick kiln; and Dry cellar and tunnel fire one uninterrupted channel in brick production3. BOF exhaust gas recovery device; BOF: basic Oxygen Furnace4. Raw material preheated for electric arc furnace

Household and services

1.Compact lighting technology using compact lamp

2.High energy efficiency air conditioner, EER>10BTU/W

3.Using central air conditioning systems

4. Biogas for cooking and electric generation

Transportation1. Implementing the road map of exhaust gases standards for road transport means

2. Constructing and operating the public railway system

3. Developing the public transport system (bus), limiting the number of motto-scooter/motorcycle in the big cities

4. Using LPG for the transport means in Vietnam

Agriculture

1. Water management from rice field

2. Livestock feed processing and modification

3. Rational application of fertilizer

Forestry

1. Forest conservation, reforestation, afforestation

2. Mechanization of timber processing and logging

3. Forest fire reduction

Some adaptation technologies to Climate change on sectors of Agriculture, Water resources, Coastal zone management has been analyzed, however it is primary and has not comprehensive due to lack of data, information and expertise's.

One Example: GHG reduction technologies in steel production Identification of technologies

Technology Saving Investment Age

1. DC arc furnace use water to cool the furnace wall

5-10% electricity40-50% electrodes Data not avail. 1990

2. High frequency melting furnace 12-13% 1MUS$1000kg/hr 1979

3. Drying and humidity control equipment for refine coke oven

While reduction 1% humidity, saving 18,000Kcal/Tcoal

18MUS$3.2MT/year 1983

4. BOF exhaust gas recovery deviceBOF: Basic Oxygen Furnace 250Mcal/Tsteel 18MUS$

250T/hr 1962

5. Raw material preheated for electric arc furnace 70Mcal/T 8MU$

150T/shief 1981

6. Heating furnace with regenerative burners 10-30% 0.25MUS$/pair 1990

7. Ladle heating apparatus with regenerative burners 56% 1.2MUS$ 1990

8. Energy saving operating electric arc furnace 13% Data not avail. 1980

One Example: GHG reduction technologies in steel production Technology needs Assessment

Technology Tech. parameters 2005-25 accumulated

CO2 reduction of whole sector,

MtCO2eq.

Reduction costUSD/tCO2

Energy saving

Cost Refurbishment Refurbishment

1. BOF exhaust gas recovery device. BOF: basic Oxygen Furnace

80kWh/t 18 MUSD/ 200t per hour 0.991 - 48.6

2. High frequency melting furnace

12.5% 1MUSD/1t per hour 1.084 312.7

3. Raw material preheated for electric arc furnace

70Mcal/t 8MUSD/150t per batch

0.638 - 44.4

4. Drying and humidity control equipment for refine coke oven

306 MCal/t coal

18 MUSD/ 3Mt/year 0.157 8.6

The barriers identified in TNA processes

Items Barriers analysis

Information

Inadequate access to technical and financial information and poor dissemination of information to technology users.Difficulty for small and medium firms to access technology informationInsufficient level of public awareness for intensive activities on CC technology for GHG emission reductionLack of information about potential market of technologies for investors

Technological Inadequate infrastructure, lack of technical standards and supporting institutions, low technical capabilities and technology knowledge base...Lack of technological maintenance.Lack of human resources that can provide consultancy on TNA and technology transfer of climate change adaptation.

Market Lack and absent of technology market on GHG reduction and CC adaptation.

Institutional Inadequate legal, regulatory and institutional frameworks.Insufficient support at the local level for encouraging energy efficient projects, etc.Lack of joint stakeholder networking and planning Poor coordination among donors and within the country

Financial Undeveloped system of environmental funds.Lack of financial, tax and tariff policies on EST transfer project. Deficiency of capital for updating technologies and environmental measures. Lack of involvement of national banks in EST technology transfer.

3.Some lessons learned

+ TNA will be most successful when they focus on technologies and actions that meet national development goals while also responding to climate change concerns, and when implementation actions complement existing development programs.

+ Effective TNA should actively engaged all key stakeholders, including government agencies, businesses, technical institutions, and international partners in the selection of technology priorities and design of actions to overcome barriers to technology implementation.

+ It is necessary to build or strengthen the human, scientific, technical and institutional capacity for identifying, designing, developing, monitoring, evaluating and hosting technological projects, including targeted research projects, for bilateral and multilateral funding

+ The main outputs of the TNA project will be the good and important input of Viet Nam’s SNC project, as expected result a draft action plan framework for the transfer and adoption of ESTs will be prepared during the implementation of SNC

Conclusions

+ TNA help Viet Nam to identify their climate change adaptation technology transfer priorities and develop effective strategies to address them. It can be powerful instruments for focusing the attention of government agencies, the international donor community and private sector investors on a well-defined set of priority activities.

+ Strengthening the technical and financial support on TDT for reducing GHG emission and adaptation to CC from International and donor countries is necessary; and should be as part of commitments by developed countries.

Thank you for your attention !For more information please contact:

Climate Change Project OfficeNo.45 Tue Tinh Street, Ha Noi, Viet NamTel: 844 – 9743195; Fax: 844 – 9743200

Email: vnccoffice@fpt.vnor cuong4412@yahoo.comWebsite: www.noccop.org.vn