Vietnam will need up to US$30 billion to cope with the impact of climate change and sustain green growth in the coming years.
The sum is shown in a report released by the Ministry of Planning and Investment, the World Bank (WB) and the United Nations Development Program (UNDP) at a seminar in Hanoi City last Thursday.
Pham Hoang Mai, head of the ministry’s Department of Science, Education, Natural Resources and Environment, told the seminar that the nation expects to raise around 70% of the amount from the private sector and 30% from the State.
However, Mai acknowledged that mobilizing resources to meet the capital demand will be a major challenge for Vietnam.
According to the ‘Financing Vietnam’s Response to Climate Change: Smart Investment for a Sustainable Future’ report, the central budget accounts for 64% of the total amount for climate change adaptation while the remaining 36% is from donors.
Deputy Minister of Planning and Investment Nguyen The Phuong asked international organizations to continue support for Vietnam in terms of capital and technology.
Victoria Kwakwa, WB country director for Vietnam, said capital for climate change adaptation must be used effectively.
Meanwhile, UNDP country director in Vietnam Louise Chamberlain suggested Vietnam create favorable conditions to draw investments in infrastructure development for climate change adaptation.
The report said Vietnam is vulnerable to climate change. The country will face higher temperatures and sea levels, stronger storms, more floods and drought.
A scenario with average emissions is annual average temperatures would rise by about 2-3 degrees Celsius by 2100 compared to the last decades of the 20th century. Sea levels would rise between 42 and 72 cm depending on coastal areas and the highest daily rainfall could increase by up to 150% in parts of the northern mountainous region.
Vietnam is exposed to climate-related natural hazards due to its geography and topography. Economic development and population, particularly in cities in the Mekong Delta and along the coast, are vulnerable to climate change.
According to a WB report titled ‘Charting a Low-Carbon Development Path for Vietnam’ in 2014, Vietnam recorded the fastest growth in greenhouse gas emissions in the region. Vietnam’s emissions growth was among the highest in the world and significantly higher than other countries in the region such as China, Malaysia, Thailand, Indonesia, Cambodia and the Philippines.
Vietnam’s carbon intensity of gross domestic product (GDP) is now the second highest in the region (after China) and it is still increasing.
Official projections of Vietnam’s energy emissions show a fourfold increase between 2010 and 2030 and total net emissions will grow threefold over that period.
These increases are mainly driven by the projected growth in the use of coal for power generation as its share in the power generation mix is expected to triple from 17% in 2010 to 58% in 2030.