CS 2.1: Develop the feasibility study for credited NAMA, propose carbon pricing instruments and roadmap for application of market based instruments (MBIs) in solid waste management sector – Partnership for Market Readiness in Viet Nam (VNPMR)

16-05-2021

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1. Context and background

The project “Partnership for Market Readiness in Viet Nam” (VNPMR) was funded by the Partnership for Market Readiness and coordinated by the World Bank with the objective to strengthen the capacity of the government of Viet Nam to develop market-based instruments to support mitigation measured to reduce greenhouse gas (GHG) emissions. The project includes essential capacity development and improved data management at the central level, sustained stakeholder engagement to ensure efficient and effective leadership and implementation, and the design and preparation of market-based instruments (MBIs) in the steel and solid waste sectors.

Increasing population together with rapid socio-economic development in developing countries like Viet Nam has resulted in serious concerns about the environment, especially the handling of solid waste. According to the 2011 National State of Environment Report, solid wastes are increasing 10% annually nationwide and are expected to continue going up in terms of volume and also of the toxicity of the waste content. 46% of solid waste is produced in urban areas, 17% from industrial production. Rural solid wastes and wastes released by craft villages and the medical sector account for the remaining percentage. In 2013, the waste sector is reported to emit 20,686 ktCO2e accounting for 7% of total emission of Viet Nam without LULUCF (about 8% of total emission including LULUCF). The Nationally Determined Contribution (NDC) of Viet Nam has identified the waste sector, including sold waste landfills as one of the key sectors that could contribute to the achievement of the emission reduction target of the country.

2. Objectives

  • Evaluation of  market based instruments (MBI) in the waste sector based on on-site activities such as data collection and stakeholder consultations and to identify the most promising MBI
  • Assessment of the readiness of the sector for the implementation of the selected MBI, particularly regulatory frameworks, institutional agreements and private sector involvement in the waste sector.
  • Development of a roadmap and action plan for piloting the implementation of the MBI in the waste sector in Viet Nam.

3. Main activities

  • Develop and identify a feasible crediting program for the municipal solid waste (MSW) management sector in Viet Nam. This sector comprises landfill and other waste treatment options for urban solid waste (e.g. composting), as well as waste reduction initiatives; hazardous waste is excluded from the scope of the program. To enable the implementation of the program, a data collection and management system will be developed with design a MRV system that can enable the operations of the selected MBI and that takes into account the development at national and international level on MRV requirements.
  • Design a survey for selected cities (tentatively Ha Noi, Binh Duong and Da Nang/Phu Tho/HaiPhong) for a survey on the current situation of urban solid waste management. This data will feed into a pre-feasibility study for the potential crediting program, building on the outcomes of the task carried out as described above.
  • Develop and propose a roadmap for the implementation of appropriate carbon pricing instruments MSW sector that can support its implementation in the mid-long term and that provides a planning document that describes the necessary steps for the introduction of the MBI, including roles and responsibilities, tasks and implementation timeline.
  • Stakeholder consultations in order to gather information and raise awareness and well as training and workshops for capacity building.

4. Duration

20 months from November 2018 to June 2020

Expertise carbon market, carbon pricing, MBI, credited NAMA

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