1. Workshop on sharing best practices with conducting TNAs Bangkok, 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

2. Outlines 1.Introduction 2.Technology needs assessment processes 3.Some lessons learned Conclusion

3. 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%

4. 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

5. 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.

6. Three types of activity are required for effective TNA 1. Institutional arrangements for stakeholder engagement 2. TNA assessment processes 3. Implementation actions

7. 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 StaffTechnical Expert Team GHG inventory Group Mitigation Group V &A Group

8. Identified a list of stakeholders who will sustain the implementation process OrganizationSub - bodiesRole MONRE International Cooperation Dept.National Focal Point Agency National Environment AgencyEnvironment monitoring Environment Dept.Environment management Dept. of HydrometeorologyHydrometeorology management National HMSClimate change monitoring MOI Dept. of Energy & PetroleumEnergy, RE management Dept. of Science&TechnologyEE & ES management MOST Dept. of Science&Technology of industryScience&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 MOFADept. of International organizationsFocal Point of foreign policies MOFDept. of International CooperationFinancing policies, fund, finance incentives MARD Dept. of Agriculture Dept. of Forestry Agriculture, forestry and rural development MOT Dept. of Science &TechnologyEnvironment management in transport Vietnam RegisterGases pollution control of transport means Provinces and cities Local management

9. Identified sector industries, associations, and distributors involved EnterprisesSub bodiesRole State owned at National level ENV Dept. of Science& TechnologyNew tech. introduction Regional CompaniesElec. Transmission and distribution Dispatching CenterData Power plantsEnd users Cement Corporation Dept. of Science&TechnologyNew tech. introduction Cement plantsEnd users VINA Steel Dept. of Science&TechnologyNew tech. introduction Steels plantsEnd users VINACoal Dept. of Science&TechnologyNew tech. introduction Coal minesEnd users PetroVietnam Dept. of Science&TechnologyNew tech. introduction Petro companiesEnd users VINA Paper Dept. of Science&TechnologyNew tech. introduction Paper & pulp MillsEnd users

10. Identified sector industries, associations, and distributors involved (cont’) Enterprises Sub bodiesRole Other Entities Provincial level CompaniesEnd 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

11. Criteria for technology needs assessment CodeKey criteriaSub- criteriaCriteria content A Environment protection A1. GHG reduction potentialThe 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 investmentSpecific investment - Low investment per product B2. Payback periodHigh 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

12. Key priorities sectors for technology needs SectorsSub-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

13. N o of Technologies reduction GHG emissions have been analyzed ItemsSectors No. of technologies Energy 1.Electricity generation 2.Industry 3.Household and Services 4.Transportation 23 20 9 Non-energy 1. Agriculture 2. Forestry 10 14

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 turbines 6.Switching from oil, coal fired to gas in the thermal power plants. 7.Clean Coal technology 8.Oil field associated gas recovery and utilization 9.Reduction the electricity loss in transmission and distribution Industry 1. Change from west to dry process in cement production 2. In brick production: Vertical shaft brick kiln; and Dry cellar and tunnel fire one uninterrupted channel in brick production 3. BOF exhaust gas recovery device; BOF: basic Oxygen Furnace 4. Raw material preheated for electric arc furnace

15. 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 Transportation 1. 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

16. 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.

17. One Example: GHG reduction technologies in steel production Identification of technologies TechnologySavingInvestmentAge 1. DC arc furnace use water to cool the furnace wall 5-10% electricity 40-50% electrodes Data not avail.1990 2. High frequency melting furnace12-13% 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 device BOF: 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$/pair1990 7. Ladle heating apparatus with regenerative burners 56%1.2MUS$1990 8. Energy saving operating electric arc furnace 13%Data not avail.1980

18. One Example: GHG reduction technologies in steel production Technology needs Assessment TechnologyTech. parameters2005-25 accumulated CO2 reduction of whole sector, MtCO2 eq. Reduction cost USD/tCO2 Energy saving CostRefurbishment 1. BOF exhaust gas recovery device. BOF: basic Oxygen Furnace 80kWh/t18 MUSD/ 200t per hour 0.991- 48.6 2. High frequency melting furnace 12.5%1MUSD/ 1t per hour 1.084312.7 3. Raw material preheated for electric arc furnace 70Mcal/t8MUSD/ 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 0.1578.6

19. The barriers identified in TNA processes ItemsBarriers 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 information  Insufficient level of public awareness for intensive activities on CC technology for GHG emission reduction  Lack 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.

20. 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.

21. + 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

22. 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.

23. Thank you for your attention ! For more information please contact: Climate Change Project Office No.45 Tue Tinh Street, Ha Noi, Viet Nam Tel: 844 – 9743195; Fax: 844 – 9743200 Email: vnccoffice@fpt.vn or cuong4412@yahoo.com Website: www.noccop.org.vnvnccoffice@fpt.vn