1 / 30

Eco-innovation and Sustainable Consumption and Production (SCP) Policies in Vietnam

Eco-innovation and Sustainable Consumption and Production (SCP) Policies in Vietnam. Nguyen Trung Thang, PhD Institute of Strategy and Policy on Natural Resources and Environment, Vietnam (ISPONRE) ASEIC Global Innovation Forum, 4-5 th Sep, 2018 Jakarta, Indonesia. Outline.

rreyes
Download Presentation

Eco-innovation and Sustainable Consumption and Production (SCP) Policies in Vietnam

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Eco-innovation and SustainableConsumption and Production (SCP) Policies in Vietnam Nguyen TrungThang, PhD Institute of Strategy and Policy on Natural Resources and Environment, Vietnam (ISPONRE) ASEIC Global Innovation Forum, 4-5th Sep, 2018 Jakarta, Indonesia

  2. Outline • Eco – Innovation Index of Viet Nam. • National policy strategies and instruments for SCP in Vietnam. • Sustainable production activities by enterprises. • Sustainable consumption by citizens. • Challenges, opportunities and some recommendations for SCP in Viet Nam

  3. 1. EII of Vietnam

  4. Eco-Innovation and Sustainable Development • Eco-innovation • emerged as an important pathway towards sustainable development in the business sector. It can be a key catalyst for promoting and implementing green growth because it promotes all forms of innovation that reduce environmental impacts and strengthen resilience to environmental pressures (OECD, 2011). • Eco-innovation is • “any form of innovation aiming at a significant and demonstrable progress towards the goal of sustainable development, through reducing impacts on the environment or achieving a more efficient and responsible use of resources including both intended and unintended environmental effects from innovation as well as not only environmental technology but processes, systems and services” (EIO, 2012a). • ASEM Eco-innovation Index (ASEI): • established by the ASEM SMEs Eco-innovation Center (ASEIC) • annually measured in ASEM member countries since 2014 • Constitute of 20 indicators classed into 04 groups: (i) EI capacity; (ii) supporting environment; (iii) EI activity; (iv) EI performance

  5. ASEM Eco-innovation Index (ASEI) 2016 of Viet Nam Source: Park, M., Han, K., Jang, E., Choi, W., Joo, J. 2016. ASEM Eco-innovation Index 2016. ASEM SMEs Eco-Innovation Center, Seongnam

  6. Viet Nam ranks in ASEI 2016 * including Lao PDR, Vietnam, Bangladesh, India, Cambodia, Myanmar and Pakistan as classified by the World Economic Forum (WEF)

  7. Mapping supply and demand-side instruments for eco-innovation in 17 Asian countries • The selected Asian countries were mapped into four categories: leaders, followers, loungers, and laggards. Vietnam belongs to loungers that slowly catch up to eco-innovation approaches, compared to other countries. Note: The color used for the name of the country indicates its economic development stage: red: stage 1; blue: stage 1–2; orange: stage 2; yellow: stage 2-3; black: stage 3 Source: Jang, E., Park, M., Roh, T., Han, K. 2015 Policy Instruments for Eco-Innovation in Asian Countries. Sustainability 7(9): 12586-12614. http://dx.doi.org/10.3390/su70912586

  8. 2. National Policies, Strategies and Instruments for Sustainable Consumption and Production 2.1 National Strategies and Plans 2.2 Legislation 2.3 Economic Instruments

  9. National Strategies and Plans 1. Vietnam’s Socio-Economic Development Strategy 2011-2020 (2011) • SCP related targets: 100% new business & manufacture facilities apply clean technology; >80% existing ones meet environmental standards; 95% solid waste, 85% toxic waste and 100% medical waste properly treated. • Clean energy, clean production and clean consumption are key measures. 2. Vietnam Sustainable Development Strategy for 2011-2020 (2012) • Sustainable production: Intensify mass application of cleaner production for resource efficiency, reduce emissions and pollution • Sustainable consumption: Develop a civilized, harmonious and environmentally-friendly consumption culture; eco-label and green procurement; eco-product market; community-based initiatives for SCP; policies to correct unreasonable consumption behavior. 3. National Strategy on Environmental Protection to 2020, vision to 2030 (2012) • Objectives: Fundamentally control and restrict increase in pollution, improve the quality of the environment, create lower waste and low-carbon green economy by 2020. • Strategic tasks: (i) Restrict new environmental pollution sources; (ii) Reduce existing environmental pollutionsources; (iii) Environmental issues of industrial parks, river basins, craft villages, rural hygiene and sanitation must be primarily addressed.

  10. National Strategies and Plans 4. National Strategy on Climate Change (2011) Reduce GHG emissions through: • (i) New and renewable energies; • (ii) Restructure the economy to promote energy efficiency; • (iii) Change methods of agriculture and husbandry, develop biogas as fuels, reduce and reject out-of-date energy-intensive agricultural machinery; • (iv) Promote waste minimization, reuse and recycling. 5. Strategy for Clean Technology Use to 2020 (2013) • Objectives: To 2020, 100% new projects of focused industrial sectors comply with clean technology standard; 60-70% of existing industries have developed roadmap of technology innovation; To 2030, all industries apply standards for clean technologies. • Tasks to be implemented: (i) Develop standards for clean technologies, especially for those energy-intensive and polluting industries; (ii) Promote technology innovation towards clean technology; (iii) Research, transfer, apply, pilot clean technologies; (iv) Complete policy and legislations system for clean technologies, phasing out obsolete technologies for focused industries.

  11. National Strategies and Plans 6. National Strategy on Green Growth (2012) • Reduce GHG emissions, promote clean and renewable energy; • Greening production: review & adjust existing sectoral master plans; encourage development of green industry & green agriculture; enhance investment in natural capital; • Greening lifestyle and promoting sustainable consumption: rapid and sustainable urbanization while maintaining harmony with nature in rural areas, establishing sustainable consumption behaviours. 7. National Energy Development Strategy to 2020, vision to 2050 (2007) • Proportion of new and renewable energies to reach about 5% by 2020 and 11% by 2050 of total primary energy. 8. Strategy on Cleaner Production in Industry to 2020 (2009) • Industries are aware of benefits from CP through awareness raising. • Industries apply CP in practice and achieve resources & energy efficiency; • Increase number of CP staffs in Department of Industry and Trade (DOIT) in provinces through training.

  12. National Strategies and Plans 9. National Action Program on Sustainable Consumption and Production (2016) 09 Projects: • (i) Develop and improve legal framework and policies to implement SCP; • (ii) Raise awareness and implementing capacity of SCP to all stakeholders; • (iii) Ecological Innovation (Apply innovation at all stages of product life cycle, Restructure industries); • (iv) Develop sustainable products production; • (v) Develop sustainable distribution systems; • (vi) Develop sustainable supply chain; • (vii) Promote sustainable exports and improve sustainable export competitiveness capacity to enterprises in key export products; • (viii) Green public procurement; • (ix) Waste Reduce, Recycle and Reuse (3R).

  13. Legislations 1. Law on Environmental Protection (Law No 55/2014/QH13) • Environmental protection must be performed on the basis of resources efficiency and waste minimization. • Manufacturing and business establishments are obliged to treat all kind of wastes to meet environmental standards before discharging into the environment. • Industries are obliged to apply 3Rs as well as collecting and treating of discarded products (extended producers responsibilities – EPR). 2. Law on Economical and Efficient Energy Use (Law No 50/2010/QH12) Industries are obliged to • develop and implement annual plans on efficient use of energy; • apply standards, technical regulations and norms on energy use; • advance production management processes; • use substitute energies with higher efficiency in production lines; • make the optimal use of lighting, ventilation and cooling systems; • operate, upgrade and maintain production lines to prevent energy loss. • Big energy-consuming industries must conduct energy audit on 3-year basis.

  14. Legislations 3. Law on Water Resources (Law No 17/2012/QH13) • Must use water for proper and rational purposes; • Replace and remove obsolete water-intensive equipment; • Improve water use efficiency in processes; • Apply advanced techniques and technologies in water exploitation and use; • Increase the use of recycled water and water reuse; Store rainwater; • Apply crop structures suitable to seasons and water source conditions; • Improve farming technologies and techniques in agricultural production. 4. Law on Mineral (Law No 60/2010/QH12) • Mineral strategies and plans must promote rational and economical utilization of minerals to meet present needs while taking into account scientific and technological development and future demand. • Restrict export of raw minerals.

  15. Economic Instruments Specific Environmental Protection Tax rate 1. Natural Resources Tax • Law on Natural Resources Tax (Law on Royalties - Law No 45/2009/QH12) • 09 taxable groups: (i) metallic minerals; (ii) non-metallic minerals; (iii) crude oil; (iv) natural gas, coal gas; (v) natural forest products; (vi) natural fishery products; (vii) natural water; (viii) natural swallow's nests; (ix) others. 2. Environmental Protection Tax • Law on Environmental Protection Tax (Law 57/2010/QH12) • 08 taxable groups (table)

  16. Economic Instruments 3. Environmental Protection Fee on Wastewater • Decree 25/2013/ND-CP dated 29/3/2013. • Domestic wastewater: rate not exceed 10% of selling price of clean water supply. • Industrial wastewater: based on the quantity of discharged pollutants (COD, TSS) and whether containing heavy metals or not. 4. Environmental Protection Fee on Mineral Exploitation • Decree 12/2016/ND-CP dated 19/02/2016. • Based on: volume of waste (soils, stone etc.); exploited mineral quantity; type of minerals; mining technology (open mining/underground mining). 5. Deposit-Refund System in Mineral Exploitation • Decree 19/2015/ND-CP dated 14/2/2015. • Mining companies have to: - develop an accepted environmental restoration plan with detailed budget estimation, - deposit the estimated amount of budget. - refunded after finishing mining and restoration & confirmed by environmental agency.

  17. Economic Instruments 6. Vietnam Environmental Protection Fund • Decision 78/2014/QD-TTg dated 26/12/2014 • Tasks: • provide soft loan, sponsorship, and interest-rate support for environmental protection and climate change responses; • receives the deposition for environmental restoration in mineral exploitation; • receive security deposit from organizations and individuals importing recyclable materials. • Capital allocated by state budget: 1,000 billion VND (~45 million USD) in 2017

  18. 3. Sustainable Production by Enterprises 3.1 Implementation of Cleaner Production Strategy 3.2 Sustainable Production Projects 3.3 Enhancing Sustainable Production through Enterprises Ranking/Reporting

  19. Implementation of CP Strategy Source: Vietnam Cleaner Production Centre – VNCPC (2016) Cleaner Production nationwide in Vietnam; http://www.sxsh.vn/vi-VN/Home/tongquansanxuatsachhon-14/2011/San-xuat-sach-hon-tren-toan-quoc-874.aspx

  20. Sustainable Production Projects Promoting Eco/Sustainable Industrial Zones • Project ”Implementation of Eco-Industrial Park Initiatives for Sustainable Industrial Zones in Vietnam” (2015-2017) - UNIDO • “Overview of Development, Implementation and Management Experiences of Eco-industrial Parks in Vietnam” - UNIDO SWITCH - Asia Program - EU • The Sustainable Product Innovation Project (SPIN) (2014 -2015) • Project “Establishing a Sustainable Pangasius (catfish) Supply Chain in Vietnam” (SUPA project) (2013 - 2017)

  21. Enhance SP through Enterprises Ranking/Reporting Ranking Enterprises for Sustainable Development • Establish by the Vietnam Business Council for Sustainable Development (VBCSD) • 4 criteria and 151 indicators • Assessment results finalized in November 2016, published list of top 100 Reporting on Sustainable Development by Enterprises on Stock-Exchange • Circular 155/2015/TT-BTC dated 06/10/2015 by the MOF • All enterprises on stock-exchange must publish the Annual Report. • Include sustainable development activities: resource use (water and energy) in compliance with environmental law & assess their environmental responsibilities.

  22. 4. Sustainable Consumption by Consumers 4.1 Eco-labelling and Market 4.2 Consumption Pattern Change 4.3 Sustainable Consumption Activities by NGOs

  23. Eco-labelling and Market Vietnam Green Label • Established in 2009 by Decision 253/QD-BTNMT dated 05/03/2009. • Only 04 groups of products have been recognized and certified: (i) fluorescent lamps; (ii) coating paints; (iii) printers; (iv) washing detergent. • Causes: Limited budget; no specific incentive mechanisms; low interests, awareness and capacity of enterprises. Energy Efficiency Labeling • Decision 51/2011/QDTTg: by 2014, MOIT has granted EE labels to 6,125 products • From 2015, products have to comply with the minimum energy performance standards (MEPS) in Decision 78/2013/QD-TTg. • The number of incandescent lamps is reduced by 1.05 million bulbs from 2012 to 2015; while CFL increased from 3.67 to 4.3 bulbs/household and LED increased from 1.15 to 2.17 bulbs/household (Huyen and Thong, 2015). Public Green Procurement • The only current green procurement policy is for energy efficient products, by Decision 68/2011/QD-TTg dated 12/12/2011

  24. Consumption Pattern Change Consumption Change to Organic/Clean/Safe Food • Government campaign “Say no to dirty food” since 2016 • Increasing interest in consuming organic foods and promoting sustainable organic farming practices. Public Transport and Cleaner Fuel • Hanoi Transportation Master Plan to 2030, Vision to 2050 - Decision 519/QD-TTg (2016)Target: Public transport cover 30-35% demand in 2020, 50-55% in 2030 and 65-70% after 2030. • Ho Chi Minh City Transportation Master Plan to 2020 - Decision 568/QD-TTg (2013)Target: 20% - 25% demand by 2020; 35-45% by 2030 and 50-60% after 2030. • Initiatives for cleaner fuels: E5, CNG buses. Green building • By 2015, there are 05 green building certification systems operating in Vietnam. • 40 buildings certified & 20 buildings under evaluation • Vietnam Green Building Council (VGBC) established in 2007, recognized by the Ministry of Construction since 2009.

  25. Sustainable Consumption activities by NGOs Promote environmentally biodegradable bags to replace nylon bags • Initiatives by supermarket chains • Initiatives by communities Green Consumption Campaigns • In Ho Chi Minh City by Sai Gon Liberation Newspaper, Department of Industry and Trade (DOIT) and Association of Trading Cooperatives (Saigon Coopmart). Energy Efficiency and GHG reduction • Earth Hour • Community initiatives Other projects/initiatives...

  26. 5. Opportunities and Challenges of SCP in Vietnam 5.1 Opportunities for Promoting SCP in Vietnam 5.2 Challenges for SCP in Vietnam 5.3 Recommendations for SCP in Vietnam

  27. Challenges Population growth and unsustainable economic development paradigm: Middle-class population growth leads to unsustainable consumption. Economic paradigm still rely on FDI, cheap labor and natural resources exploitation. Limitations of implementing legislations & economic instruments: No regulations on efficiency of material; sustainable consumption; sustainable public procurement. Economic instruments are inefficient as the levy are much lower than treatment cost. Performance of SCP in Vietnam is still weak and faces many constraints in production, distribution, consumption and disposal processes: LCA has not been addressed fully in SCP. SME production technologies are obsolete, outdated; lack of knowledge, financial and human resources. Supply chain is still limited; prices of eco-products are still high.

  28. Opportunities • Green Growth become a new development model to achieve SDGs, recognised at global scale. SCP is a core measure. • Vietnam has recognized the importance, and has been committed to SCP implementation and receiving international supports. • Supporting Environment: Vietnam has developed an institutional framework on SCP with policy direction, regulations and action programs. • A number of activities for SCP have been implemented in different areas from production to consumption.

  29. Recommendations Improving capacity for SCP • Training workshops and campaigns are needed for increasing eco-innovation awareness • Continue improving and completeningthe institutional framework on SCP Enforcing regulatory power of eco-innovation policy instruments • Review, enforce regulartory power and consult stakeholders to improve policy and legislations system. • Bring into play the 09 projects of the SCP Action Program (Prime Minister Decision 76/QD-TTg) • Bottom-up approach in compliance with market economy principles. SCP shall be implemented by SMEs, NGO and communities. Improving technology for SCP • Successfully implement the Strategy for Clean Technology Use with vision to 2030

  30. Thank you for your attention! Dr. Nguyen Trung Thang Institute of Strategy and Policy on Natural Resources and Environment, Vietnam ntthang@isponre.gov.vn

More Related