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Institute of Meteorology, Hydrology and Climate Change of Vietnam

Nationally Appropriate Mitigation Action (NAMA)

Programme for the

Solid Waste Sector of Viet Nam

“Waste-to-Resources for Cities in Viet Nam”

May 2016

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Outline

1. Background and rationale

2. The Nationally Appropriate Mitigation Action “Waste-to-Resources for Cities in Viet Nam”

2.1 NAMA Development Process

2.2 Purpose of the NAMA and Expected Benefits

2.3 Eligible Measures and Scope of the NAMA Programme

2.4 How the NAMA Programme Works

2.5 Contribution to Climate Change Mitigation

2.6 Financing the NAMA

2.7 Institutional Arrangements

2.8 Next steps: Adopting, Piloting and Implementing the NAMA

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1. Background and rationale

The management of solid waste1 is one of the priorities of Viet Nam’s national government.

2 Sustained

economic growth and increasing consumption are pushing up solid waste generation rates, which have

increased 10-16% on an annual basis since 2000. As of 2010, approximately 26,000 ton of solid waste were

generated per day in Viet Nam, with most of it being disposed in open dump sites and unsanitary landfills

without any prior treatment. This has led to severe environmental stress, including soil, water and air pollution,

negatively impacting livelihoods. At the same time, local government authorities are incurring increasingly

higher costs just to collect and transport waste, with little or no direct monetary value derived from these

activities. Ongoing waste management practices are also major contributors to global climate change, with the

decay of organic matter from disposal sites leading to the emission of methane, a greenhouse gas.

The government of Viet Nam recognizes the need to shift from current waste management practices to more

sustainable approaches that focus on the recovery of resources from waste.3 A number of policy documents

have been approved by the national government to support such approaches. Amongst these, the National

Strategy for Integrated Management of Solid Waste up to 2025 and Vision towards 2050 stands out as

the most far-reaching national policy, proposing ambitious targets for the collection and treatment of waste.

Among other elements, it proposes that 90% and 100% of urban waste are collected by 2020 and 2025,

respectively, and that during these years, 70% and 90% respectively of the collected waste is recycled, reused

or recovered for use as an energy source or for the production of organic fertilizer.

National level documents on climate change are also supportive of “waste-to-resource” approaches and a

wider adoption of the principles of Reduce, Reuse, Recycle (3R). Such documents include the National

Climate Change Strategy (2011) and the Intended Nationally Determined Contribution (INDC) of Viet

Nam to the new climate change treaty that was agreed in Paris in December 2015. In spite of the ambition of

existing policies and strategies, for which the national government should be commended, several barriers

and challenges are hindering the implementation of “waste-to-resource” initiatives in Viet Nam:

Lack of guidelines and regulations, especially at provincial and city level, to stimulate and/or

enforce the implementation of the targets laid out in national policy documents;

Insufficient policy, regulatory and market incentives for stimulating investments in solid waste

management infrastructure that are in line with “waste-to-resource” approaches and 3R principles;

Institutional arrangements for the climate change and waste sectors in Viet Nam are complex,

often unclear, and suffer from overlapping roles and responsibilities among participating actors;

1 In the scope of this work, solid waste pertains to domestic waste streams originating from households, markets, commercial

centers, offices, research facilities, schools, etc., generated both in urban and rural areas. This excludes e-waste, as well as industrial, medical and construction wastes. 2 In 2012, the Prime Minister of Viet Nam issued Decision No. 1775/QD-TTg on the approval of the management of GHG emissions

and management of carbon trading activities to the world market. Priority sectors include energy, agriculture, land use, forestry and waste. The document proposes for the waste management sector a 5% reduction of GHG emissions in the period from 2005 to 2020. 3 The National Environmental Protection Strategy until 2020 and vision to 2030 encourages waste recycling. It also proposes

measures for implementing development plans for recycling capacity, to provide support for the establishment of the recycling businesses.

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Limited availability of funds to finance “waste-to-resource” projects and initiatives at the local level;

A generalized lack of capacity, know-how and expertise along the development cycle of “waste-

to-resource” projects, from initial conceptualization to “on-the-ground” operation.

In this context, the government of Viet Nam, through the Ministry of Natural Resources and Environment

(MoNRE), recognizes the opportunity to develop a national solid waste sector programme in association with

an international climate financing mechanism, Nationally Appropriate Mitigation Actions (NAMAs).

NAMAs refer to strategies, programmes and projects that developing countries can adopt on a voluntary basis

in order to support greenhouse gas (GHG) emission reduction initiatives that are in line with national

sustainable development priorities. NAMAs are expected to instill a “transformational change” in specific

economic sectors, and benefit from international support in the form of finance, technology, and capacity

building. In view of the importance and challenges of the solid waste sector, MoNRE has tasked the Institute

of Meteorology, Hydrology and Climate Change of Vietnam (IMHEN) to develop a NAMA programme for

the solid waste sector of Viet Nam, which has been titled “Waste-to-Resources for Cities in Viet Nam”. The

key elements of this NAMA programme – henceforth referred to as “Waste-to-Resource NAMA”; “NAMA

programme”, “programme”, or “NAMA” – are laid out on this Summary Brief.

2. The Nationally Appropriate Mitigation Action “Waste-to-Resources for Cities in Viet Nam”

2.1 NAMA Development Process

The development of the “Waste-to-Resource” NAMA was led by IMHEN and had the technical and financial

assistance of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The

development phase consisted in formulating the detailed design elements of the programme through the

undertaking of a “NAMA-design study”. The elements and different components of the proposed NAMA are

distilled in this brief, while the background analysis and details of the programme can be found in the study.

Pending formal endorsement by the national government, the NAMA would “graduate” from a “proposal” to a

“full-fledged” programme. Subsequently, the NAMA could be further detailed out in some of its components,

piloted through specific activities on the ground, and finally, fully deployed nation-wide.

2.2 Purpose of the NAMA and Expected Benefits

The overarching goal of the “Waste-to-Resource” NAMA is to support Viet Nam in reducing GHG emissions

from the solid waste sector through the implementation of waste management practices that are in line with

the principles of 3R and the recovery of resources from waste, while at the same time contributing to

sustainable development goals in Viet Nam.

The NAMA will address the barriers hindering the solid waste sector of Viet Nam through the establishment

of a policy and institutional framework that will:

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Encourage cities to voluntarily propose their own targets for reusing, reducing and recycling

solid waste, based on those laid out on the National Strategy for Integrated Management of Solid Waste

up to 2025 and Vision towards 2050;

Establish a NAMA Management Board to operate as a “one-stop shop” and steering committee for the

activities to be implemented under the NAMA, and as a coordinating entity among ministries with a

stake in the solid waste sector. It is proposed that the Department of Science, Technology and

Environment (DSTE), under the Ministry of Construction, take this role;

Set-up a dedicated financing vehicle to mobilize and channel funds from international and national

sources to city and provincial governments, and other entities, including the private sector, that

implement measures aligned with those endorsed by the NAMA. It is proposed that the Viet Nam

Environmental Protection Fund (VEPF) assume these functions;

Create incentive schemes at national, provincial and city level that enable the financial and

economic viability of “waste-to-resource” initiatives. Incentives would include, but would not be restricted

to, the payment of tipping fees to waste treatment plant operators, the set-up of local programmes for

the purchase of compost, tax rebates on equipment, etc.

Provide technical, operational and managerial support to officials and practitioners in the form of

training programmes, “on-site” assistance by technical experts, and the sharing of good-practices.

The implementation of the NAMA will result in several benefits for Viet Nam. It will lead to a cleaner and

healthier environment through the adoption of improved waste collection and treatment methods, create

business opportunities along the waste management value chain, and contribute to the improvement of the

living conditions of communities throughout the country, including informal waste pickers. The NAMA will also

support Viet Nam in achieving several Sustainable Development Goals (SDGs), especially SDGs 11, 12 and

13, on more sustainable cities, increased sustainable consumption and production patterns, and enhanced

climate action, respectively. SDGs 1 (poverty elimination) and 3 (improved health and well-being) will also be

strongly supported by the implementation of the NAMA.

2.3 Eligible Measures and Scope of the NAMA Programme

All cities in Viet Nam are eligible to be part of the NAMA as long as they voluntarily implement some of the

measures endorsed by the programme. Eligible measures of the “Waste-to-Resource” NAMA, which will be

subject to some type of monitoring, verification and reporting (MRV) procedures when implemented in

cities, are as follows:

i) Reduction of solid waste generated and implementation of waste segregation practices, preferably at

source;

ii) Diversion of waste streams from final disposal sites, with diverted waste being treated applying the

following approaches:

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a. Biological treatment of the organic component of waste, particularly through composting and

anaerobic digestion;

b. Recovery, reuse and recycling of inorganic waste;

c. Physical methods for treating waste, including the production of refuse-derived fuel and related

briquetting techniques;

d. Implementation of integrated and sustainable waste management approaches in line with the

principles of 3R, including “good practices” identified in Viet Nam such as the Integrated Resource

Recovery Centre (IRRC) model4;

e. Strategies and policies designed at city or provincial level for “zero waste” or a “carbon neutral

waste sector”.

The eligibility of measures that are in line with 3R principles and “waste-to-resource” approaches but are not

included in any of those laid out in this study will be considered on a case-to-case-basis by the NAMA

Management Board noted above. A toolkit of eligible measures has been prepared – and can be found as an

annex to the NAMA-design study – to provide additional guidance to practitioners on how “waste-to-resource”

initiatives can be recognized as part of the NAMA.

2.4 How the NAMA Programme Works

The “Waste-to-Resource” NAMA is proposed to operate along the following steps:

1. The “Waste-to-Resource” NAMA is formally endorsed/enacted at national level by relevant ministries;

2. The NAMA Management Board is established;

3. Provincial and city authorities are informed about the NAMA and its operational methods, as well as

other actors with a stake in the solid waste sector;

4. Cities that agree to be part of the NAMA prepare a detailed implementation plan that should include, but

is not necessarily restricted to, the following elements:

a. Voluntary target(s) for the adoption of 3R measures, including targets for waste reduction, waste

diversion and recycling of organic and inorganic waste;

b. Detailed description of the initiatives that the city proposes to implement, including how they

support and are aligned with the “Waste-to-Resource” NAMA;

c. Estimation of the total cost of the plan, including an indication of the share of the budget that

would be supported by the local government, and the share that would require additional support

from the national government and/or through international climate financing opportunities.

4 IRRCs consist of waste processing facilities that can treat waste in a decentralized manner and process the different waste

streams into resources such as compost, recyclables and biogas. In Viet Nam, this model was piloted in the cities of Quy Nhon and Kon Tum with the support of ESCAP.

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5. City-specific plans are submitted to the NAMA Management Board and are assessed by its staff, who

would deliberate whether the initiatives proposed by cities fall under the NAMA and, if so, which require

the support of the national government and/or international donors. This step may include back and

forth communication with local government authorities.

6. Activities considered eligible under the NAMA are communicated to the local government by the NAMA

Management Board. For the activities that need additional support from the national government and/or

international donors, the Board will request line ministries (e.g. MoC, MoNRE) or the Vietnam

Environment Protection Fund (VEPF) to mobilize the necessary funds. Both local and national level

contributions will be considered part of the “domestic NAMA”. The NAMA Management Board will also

appraise the capacity building requirements of the local government, and deliberate on the type of

support to assign.

7. Based on the funds mobilized, both from national and international sources, the local government

initiates the activities proposed under the NAMA, which would be subject to MRV procedures.

The MRV arrangements of the “Waste-to-Resource” NAMA are proposed to be built based on the national

inventory system of Viet Nam and existing monitoring procedures under the Clean Development Mechanism

(CDM) framework. MRV arrangements shall also be in line with the institutional framework for a nation-wide

MRV system for NAMAs under joint preparation by IMHEN and GIZ. The specific MRV elements of the

“Waste-to-Resource” NAMA are proposed to consist of a simplified mechanism for taking records of waste

inputs (e.g. quantity/volume of waste processed per day; composition) and outputs generated in the form of

resources (e.g. quantity of compost generated, electricity fed into the national grid, etc.). Such data are to be

compiled by cities and provinces, within their respective jurisdictions, and then aggregated at the national level

for the calculation of GHG emission reductions. These procedures are proposed to be adopted in parallel with

a tool for quantifying/measuring “co-benefits”. The specific details of the MRV system of the NAMA are

proposed to be further elaborated as one of the activities of the piloting phase.

2.5 Contribution to Climate Change Mitigation

A baseline and emission reduction (NAMA) scenarios were modelled to assess the GHG emission

reduction impacts of fully implementing the NAMA programme. That is, the emission reduction scenario

proposes a complete transformation of Viet Nam’s solid waste sector whereby all waste generated by 2030

is collected and treated through the methods and technologies endorsed by the NAMA.

The NAMA scenario assumes that of the waste generated in Viet Nam in 2030, 60% is treated through

composting, 20% is recycled, 10% is processed through anaerobic digestion, and the remaining 10% is

recovered for the production of refuse-derived fuel.

The baseline – or business-as-usual – scenario assumes that currently practiced methods of disposing and

not treating of waste continue unchanged, with waste generation rates increasing annually by 10% and waste

composition remaining the same over the 2010-2030 period. Under this scenario, it is expected that the solid

waste sector of Viet Nam could be generating 58.2 million ton of carbon dioxide equivalent (CO2eq) by 2030,

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up from 14 million ton CO2eq in 2016. Through the full implementation of the NAMA, it is expected that GHG

emissions from the solid waste sector could be reduced by 71% by 2030, i.e. by 41.4 million ton CO2eq in

relation to the business-as-usual scenario5.

The results of the modeling are presented in the following graph:

Graph above – Total emission reductions (expressed in million ton of CO2eq) from the “Waste-to-Resource” NAMA.

Legend: PE: project emissions, ER: Emission Reductions; comp: composting; RDF: refuse-derived fuel; AD: anaerobic

digestion.

2.6 Financing the NAMA

The implementation of the measures and targets proposed by the NAMA is estimated to require an average

minimum investment of 110 million USD (2.4 trillion VND) per year6, until 2030, in solid waste treatment

facilities. This excludes costs associated with establishing the institutional arrangements, capacity building

initiatives, and other diverse supporting activities, such as awareness raising campaigns or the need for

implementing systems to ensure the segregation of waste at source.

It is proposed that 80% of these investment requirements be met by domestic sources of financing, both public

and private, with the remainder (approx. 22 million USD per year, or 485 billion VND) to be made available

through international climate financing. Such support could be channeled in the form of loans and grants

through international climate financing mechanisms (with particular attention to be given to the Green Climate

Fund), bilateral official development assistance (ODA), market-based schemes, and/or “pay-for-performance”

programmes. Depending on the outcomes and impacts resulting from the piloting phase of the NAMA,

5 Details on the modelling exercise may be found in the NAMA-design study.

6 The method adopted to determine this figure is explained in the NAMA-design study.

0

10

20

30

40

50

60

70

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

CO

2eq

(m

illio

n t

on

s)

Year

PE y ER comp,y ER paper recycling,y ER RDF,y ER AD,y

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international climate financing could account for a higher proportion of the total cost of implementing the

programme.

As part of this NAMA, it is proposed that the Vietnam Environmental Protection Fund (VEPF) be

established as the national-level financial entity responsible for gathering funds from both national and

international sources and disbursing them to cities, provinces and other eligible entities that implement

activities under the NAMA.

2.7 Institutional Arrangements

In addition to VEPF, other organizations and stakeholders in Viet Nam are proposed to have roles and

responsibilities in the operation and implementation of the NAMA, as summarized and illustrated in the figure

below:

Department of Science, Technology and Environment (DSTE), under the Ministry of Construction. It is

proposed that the DSTE host the NAMA Management Board, thereby taking on the overall responsibility of

coordinating the NAMA. As part of its functions, the NAMA Management Board will appraise and decide

which projects/initiatives are eligible under the NAMA; monitor the overall implementation of the

programme while ensuring it meets its stated objectives; record all activities being proposed and/or

implemented as part of the NAMA; ensure coordination with other line ministries that may only play a minor

role under the NAMA (e.g. the Ministry of Agriculture and Rural Development, on the utilization of compost

in agriculture; the Ministry of Investment and Trade, in supporting the creation of incentives for waste-to-

energy projects implemented in the scope of the NAMA);

Department of Meteorology, Hydrology and Climate Change (DMHCC), under the Ministry of Natural

Resources and Environment (MoNRE). DMHCC is the functional unit within MoNRE that acts as Viet

Nam’s focal point to the UNFCCC, thus being responsible for the coordination of all climate change-related

activities in the country. DMHCC is also the official national focal point for the coordination and

implementation of NAMAs. DMHCC should be responsible for compiling all relevant data for the NAMA as

well as for the preparation of all reports required for international reporting including the National

Communications and the Biennial Update Reports.

The Vietnam Environment Agency (VEA), also under MoNRE, shall support DMHCC in quality

assurance/quality control on matters related to the NAMA.

Provincial authorities: Hierarchically on a tier immediately below national ministries, it is proposed that

provincial level authorities be responsible for gathering data relevant to the implementation of the NAMA. At

this level, authorities should help spreading the word about the NAMA to relevant stakeholders (e.g.

officials working in different cabinets, URENCOs, communities, etc.). If appropriate, provincial authorities

may delegate their responsibility to deal with the NAMA Management Board to city government authorities

directly. Provincial authorities may also mobilize their own funds to facilitate or implement activities that are

aligned with the NAMA.

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City authorities: Under the NAMA, it is proposed that city authorities: i) ensure coordination with provincial

authorities in reporting on initiatives that are eligible as part of the NAMA and implemented within the

municipality; ii) make a record of the requests from project developers for inclusion of activities under the

NAMA; iii) mobilize their own funds to support NAMA eligible activities; and iv) foster the engagement and

participation of communities in those activities.

URENCOs: URENCOs are public companies whose major responsibilities include the collection, transport

and treatment of waste at provincial and city level. URENCOs are important players in managing solid

waste in cities across Viet Nam, and can play a role in the NAMA either as project developers or in support

of the city and provincial authorities to which they report.

Project developers: Project developers would be responsible for implementing activities on the ground

that are in line with the measures endorsed by the NAMA (e.g. project managers may establish a waste

processing facility that supports 3R principles). To this end, they should submit a project note to the focal

point in the municipal government with a brief description of the project and the type of NAMA support

requested (if any). Once a certain project is commissioned, the project developer is required to report on a

set of key performance indicators, such as the costs of the project (including a breakdown between

equity/loan/grant), and any parameters that are part of the MRV requirements (e.g. quantities of waste

processed).

IMHEN: It is proposed that IMHEN provide technical support in the implementation of the NAMA, for

example in supporting the NAMA Management Board in evaluating the eligibility of proposed activities as

part of the NAMA, setting up the MRV system, and coordinating with external auditors if necessary, etc.

Other organizations and stakeholders: this encompasses institutions not mentioned above that can play

a role in implementing the NAMA programme. This is the case, for example, of national-level ministries

such as the Ministry of Agriculture and Rural Development (which can play a role in supporting the use of

compost in agriculture) or the Ministry of Investment and Trade (which can support the creation of markets

for waste-to-energy plants); international organizations such as development banks (which could provide

additional sources of funding for activities implemented in the scope of the NAMA); community-based

organizations; the informal private sector (i.e. waste pickers, informal door-to-door waste collection

organizations, etc.).

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Figure above – Proposed institutional arrangements for the “Waste-to-Resource” NAMA.

Legend: MoNRE: Ministry of Natural Resources and Environment; MoC: Ministry of Construction; MoIT: Ministry of Investment

and Trade; MARD: Ministry of Agriculture and Rural Development; VEPF: Vietnam Environment Protection Fund; VEA: Vietnam Environment Agency; DMHCC: Department of Meteorology, Hydrology and Climate Change; DSTE: Department of Science, Technology and the Environment.

2.8 Next Steps: Adopting, Piloting and Implementing the NAMA

The “Waste-to-Resource” NAMA could enter a piloting phase upon formal adoption or approval by the

national government of Viet Nam. Due to their proposed role in the NAMA, full endorsement of the programme

should be sought from both MoC and MoNRE.

The piloting phase is expected to be conducted for a minimum of 1.5 years, and is proposed to consist of three

main sets of activities: i) set-up of the institutional framework; ii) capacity building; and iii) demonstration and

operationalization of the design elements of the NAMA. These are detailed below.

Setting-up the institutional framework will involve the establishment of the NAMA Management Board and

its staffing. This will require a detailed definition of the scope of work of both DSTE, as the NAMA

Management Board, and VEPF. The full extent of the roles and responsibilities of other stakeholders involved

in the NAMA would also need to be detailed and formalized.

Capacity building initiatives shall consist of providing training to the staff of the newly established NAMA

Management Board and VEPF. Moreover, several different stakeholders would need to be trained on aspects

related to the NAMA, mostly at the national level. Officials from cities shortlisted to pilot the NAMA would also

need to be trained during this phase. It is also proposed to establish a training or capacity development center

for capacity building and knowledge sharing, and the dissemination of good practices related to the adoption

of measures in line with the NAMA.

MoNRE MoC MARD MoIT

DMHCC DSTEVEAVEPF

NAMA FacilityGreen Climate

Fund

Development

Banks

Other

international

donors

Provincial

Governments

Municipal

Governments

Project Developers

URENCOs

National Level

Sub-national Level

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Lastly, specific elements of the programme would need to be demonstrated and operationalized. These

include the establishment of the MRV system, the preparation of a methodology to measure “co-benefits”, and

the elaboration of a detailed investment plan for the mobilization of the funds necessary to fully implement the

programme. It is suggested that, following the formal adoption of the NAMA, two cities be selected to pilot the

programme. An option is to consider the selection of a city or location where a waste-to-resource facility is

already in operation, which could serve as the springboard for testing certain components of the NAMA (e.g.

how the MRV system could work in practice).

The piloting phase is projected to cost a minimum of 750,000 USD (approx. 16.5 billion VND). Technical and

financial assistance from international donor organizations are expected for conducting this phase, although

domestic sources would also be mobilized (e.g. for meeting the staffing requirements of the NAMA

Management Board). Upon successful implementation of this phase, the programme could be up-scaled

nation-wide. This is expected, at the earliest, in the first quarter of 2018.