Japans Efforts on Mainstreaming Climate Change Adaptation into

Japan’s Efforts on Mainstreaming Climate Change Adaptation into Vietnamese Development Policy Hanne Louise KNAEPEN 10 December 2013 International Workshop on International Climate Financing (University Leuven) 1

Outline (A) Mainstreaming Climate Change Adaptation (CCA) into development 1 – Adapting to climate change 2 – Mainstreaming CCA into development 3 – Measuring mainstreaming: discourse, actors, rules & resources 4 - Case study of JICA in Vietnam (B) Japan’s efforts on mainstreaming CCA into Vietnamese development policy 1 – Mainstreaming CCA into Development: actors • Vietnamese Development Policy • JICA 2 - Mainstreaming CCA into Development: resources • Vietnamese development policy • JICA (C) Addressing the mainstreaming gaps 2

(A) Mainstreaming Climate Change Adaptation (CCA) into Development 3. Adapting to climate change Mainstreaming CCA into development Measuring mainstreaming: 4. Case study of JICA in Vietnam 1. 2. discourse, actors, rules & resources 3

1. Adapting to climate change Figure 1 – Variations of the Earth’s surface temperature, 1000 -2100 (Parry et al. , 2007) 4

1. Adapting to climate change DEVELOPMENT PROBLEM Figure 2 – Climate change vulnerability index 2012 (Maplecroft, 2012) 5

1. Adapting to climate change Responding to climate change through ADAPTATION “The adjustment in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities. ” (Parry et al. , 2007) 6

1. Adapting to climate change CLIMATE CHANGE 7

2. Mainstreaming CCA into development all sectors of society Climate Change Adaptation(CCA) mainstreaming process of development policy planning & implementation 8

2. Mainstreaming CCA into development MACRO-LEVEL DONOR: JICA Support Programme to Respond to Climate Change (SP-RCC) MESO-LEVEL NATIONAL LEVEL: Government in Hanoi MICRO-LEVEL National Target Programme to Respond to Climate Change (NTP-RCC) LOCAL LEVEL: Can Tho City Climate Change Coordination Office Figure 3 – Mainstreaming on three levels (Adapted from Persson & Klein, 2009)68 9

2. Mainstreaming CCA into development Figure 4 - Four key explanatory factors to understand policy change (Arts & Leroy, 2006) 10

3. Measuring mainstreaming: discourse, actors, rules & resources • Mainstreaming as a New Policy Arrangement: Policy Arrangements Approach (PAA) (Arts et al. , 2006) resources actors rules discourse Figure 5 - The tetrahedron as symbol for the connections between the dimensions of a policy arrangement (Adapted from Arts et al. , 2006)69 11

3. Measuring mainstreaming: discourse, actors, rules & resources Figure 6 - Development of PAA for 3 levels 12

3. Measuring mainstreaming: discourse, actors, rules & resources DISCOURSE LEVEL PRIMARY INDICATORS SECONDARY INDICATORS Policies, plans & strategies - Separate CCA policy - CCA in country strategy Climatic data Climate change scenarios Policies, plans & strategies - Decentralisation - National CC policy - Sectoral Action Plans - CC in PRSP / SEDS* Climatic data Climate change scenarios Policies, plans & strategies - Decentralisation - Local CC policy - Sectoral Action Plans - CC in local SEDP / SEDS* Climatic data Climate change scenarios Macro Meso Micro * PRSP: Poverty Reduction Strategy Paper / SEDP: Socio-Economic Development Plan / SEDS: Socio-Economic Development Strategy Table 1 – Mainstreaming indicators for the discourse dimension 13

3. Measuring mainstreaming: discourse, actors, rules & resources ACTORS LEVEL Macro Meso Micro PRIMARY INDICATORS SECONDARY INDICATORS Authority High-level CC authority Cooperation - Donor coalition - All-sector involvement Stakeholder involvement - NGO engagement - Micro engagement Authority High-level CC authority Cooperation - New institutional arrangements - National CC platform Stakeholder involvement - NGO engagement - Micro engagement Authority High-level CC authority Cooperation - New institutional arrangements - Local CC platform Stakeholder involvement - NGO engagement - Scaling up Table 2 – Mainstreaming indicators for the actors dimension 14

3. Measuring mainstreaming: discourse, actors, rules & resources RULES LEVEL PRIMARY INDICATORS Declarations - MDGs Goal 1* - Paris Declaration: ownership Legislation Judicial advice CCA Declarations - MDGs Goal 1 - Hanoi Core Statement: ownership Legislation Laws / Decisions / Decrees CCA Declarations Local MDGs Goal 1 Legislation Laws / Decisions / Decrees CCA Macro Meso Micro SECONDARY INDICATORS * Millennium Development Goals (MDGs) Goal 1: Eradication of poverty. Table 3 – Mainstreaming indicators for the rules dimension 15

3. Measuring mainstreaming: discourse, actors, rules & resources RESOURCES LEVEL Macro Meso Micro PRIMARY INDICATORS SECONDARY INDICATORS Budget - Separate CCA financing - Pilot-projects - CC budget mechanism Budget - Separate CCA financing - Pilot-projects Table 4 – Mainstreaming indicators for the resources dimension 16

3. Measuring mainstreaming: discourse, actors, rules & resources Ranking System a) 1 (not the case), 2 (low), 3 (moderate), 4 (high) b) Calculation of the level of mainstreaming per dimension and overall outcome per level: high (4. 0>3. 4), high (3. 3>2. 8), medium (2. 7>2. 2), low (2. 1>1. 7), very low (1. 6>1. 0) c) Understanding barriers to mainstreaming 17

4. Case Study of JICA in Vietnam • Since 1995: top donor in Vietnam • Traditionally: “growth-oriented poverty reductions” • In recent years: economic & intellectual interests in Vietnam • 2008: JBIC x JICA loans • High number of climate change programmes in developing countries, e. g. 2009, Support Programme to Respond to Climate Change (SP-RCC) 18

4. Case Study of JICA in Vietnam • 2008, National Target Programme to Respond to Climate Change (NTP-RCC) Figure 7 - Map of Vietnam (www. jaif. co. jp. ) 19

(B) – Japan’s Efforts on Mainstreaming CCA into Vietnamese Development Policy 1. Mainstreaming CCA into development: actors • Vietnamese development policy • JICA Mainstreaming CCA into development: resources • Vietnamese development policy • JICA 20

1. Mainstreaming CCA into development: actors Vietnamese development policy ACTORS LEVEL Meso PRIMARY INDICATORS SECONDARY INDICATORS Authority High-level CC authority Cooperation - New institutional arrangements - National CC platform Stakeholder involvement - NGO engagement - Micro engagement Table 5 – Mainstreaming indicators for the actors dimension on the meso-level 21

1. Mainstreaming CCA into development: actors Vietnamese development policy Main obstacle to institutional mainstreaming on meso-level: • Interview, Senior Project Formulation Advisor, Disaster Management and Rural Water Supply, JICA: “Basically, the coordination between the line agencies at the central level is the main obstacle to working with the Vietnamese government. ” • Interviews, Climate Change Policy Advisor, UNDP; Senior Project Formulation Advisor, Disaster Management and Rural Water Supply, JICA: “The Ministry of Environment and Natural Resources are the least open to cooperation with other ministries. ” 2008, Vietnamese National Target Programme to Respond to Climate Change (NTP-RCC) 22

1. Mainstreaming CCA into development: actors Vietnamese development policy Figure 8 - Government and all line Ministries (M. = Ministry; own composition) 23

1. Mainstreaming CCA into development: actors Vietnamese development policy Figure 9 – Government institutional arrangements for responding to climate change (Waibel, 2010) 24

1. Mainstreaming CCA into development: actors Vietnamese development policy Figure 10 – Organisation chart of the NTP-RCC (Government of Vietnam, 2008) 25

1. Mainstreaming CCA into development: actors Vietnamese development policy Disaster Risk Area Figure 11 – National Disaster Mitigation Partnership (NDMP) in Vietnam (Ministry of Agriculture and Rural Development (MARD), 2001) 26

1. Mainstreaming CCA into development: actors Vietnamese development policy Primary indicators Cooperation Secondary indicators New institutional arrangements Grade Detail No (1) Non-existent Low (2) Well functioning institutions in DRR area; creation of at least one CCA coordinative institution; strong sectoral fragmentation mainly due to Ministry of Environment Moderate (3) Well functioning institutions in DRR area; creation of at least one CCA coordinative institution; strong sectoral fragmentation due to general political context High (4) Well functioning institutions in DRR area; creation of at least one CCA coordinative institution; effective ministerial cooperation Table 6 – Detailed grading system for “new institutional arrangements”, actors dimension 27

1. Mainstreaming CCA into development: actors JICA ACTORS LEVEL Macro PRIMARY INDICATORS SECONDARY INDICATORS Authority High-level CC authority Cooperation - Donor coalition - All-sector approach Stakeholder involvement - NGO engagement - Micro engagement Table 7 – Mainstreaming indicators for the actors dimension on the macro-level 28

1. Mainstreaming CCA into development: actors JICA 2009, Support Programme to Respond to Climate Change (SP-RCC) 1. To support the development and implementation of climate change policies and strategies based on the NTP-RCC 2. To serve as a platform for (1) aid harmonization, (2) policy dialogue, and (3) project formulation.

1. Mainstreaming CCA into development: actors JICA Pillars Climate Change related strategies, policies, etc. Policy Action Sectors Mitigation 1) 2) 3) 4) 5) Adaptation 6) Water 7) Integrated Coastal Management 8) Disaster Prevention 9) Forestry, Biodiversity and Agriculture 10) Transportation and Construction 11) Health Care Cross. Cutting Main Responsible Ministries Energy (Renewable Energy and Energy Efficiency) Transportation and Construction Forestry and Agriculture Waste Disposal CDM MONRE MOIT MOT, MOC, MOIT MARD MOC Related ministries MOC etc MARD, BCA etc MOT, MOC MOH 12) Assessment, Monitoring & Evaluation MOST 13) Financial Mechanism MOF, MPI 14) Mainstreaming CC issues to development planning MPI and Program Management of NTP-RCC and SP-RCC 15) Awareness Raising MOET and Human Resource Development 10 Ministries and agencies 35 Depts together Figure 12 – Outline of the SP-RCC

1. Mainstreaming CCA into development: actors JICA Primary indicators Cooperation Secondary indicators Grade Detail No (1) Non-existent Low (2) Donor takes part in harmonisation effort for aid effectiveness Moderate (3) Donor takes part in harmonisation effort for aid effectiveness; donor takes part in harmonisation effort related to climate change High (4) Donor takes part in harmonisation effort for aid effectiveness; donor takes part in harmonisation effort related to climate change; donor is member of an aid effectiveness group within the Environment Ministry; government creates CCA platform with clear framework for climate change funding. Donor coalition Table 8 – Detailed grading system for “donor coalition”, actors dimension 31

1. Mainstreaming CCA into development: resources Vietnamese development policy RESOURCES LEVEL PRIMARY INDICATORS Budget Meso SECONDARY INDICATORS - Separate CCA financing - Pilot-projects - CCA budget mechanism Table 9 – Mainstreaming indicators for the resources dimension on the meso-level 32

1. Mainstreaming CCA into development: resources Vietnamese development policy Figure 13 - NTP-RCC allocation by categories (François Fortier, 2010, 233 -234) 33

1. Mainstreaming CCA into development: resources Vietnamese development policy • 2008, NTP-RCC: “a financial mechanism should be created for the State to ensure necessary resources and to mobilise domestic and international supports”. • 2006, Decree No. 131 on ODA management and utilisation: “financial planning related to ODA is the responsibility of the Ministry of Planning & Investment (MPI), in coordination with the Ministry of Finance (Mo. F)”. However, the Ministry of Natural Resources and Environment (Mo. NRE) is mainly responsible for CCA. For mainstreaming, MPI and Mo. F should decide over the CCA budget allocation over all sectors. 34

1. Mainstreaming CCA into development: resources Vietnamese development policy Primary indicators Budget Secondary indicators CCA budget mechanism Grade Detail No (1) Non-existent Low (2) Approval of CCA budget mechanism; unclear roles of MPI and Mo. F Moderate (3) Approval of CCA budget mechanism; clear roles of MPI and Mo. F High (4) Approval of CCA budget mechanism; clear roles of MPI and Mo. F; Mo. NRE proposes single CCA funding schedule Table 10 - Detailed grading system for “CCA budget mechanism”, budget dimension 35

2. Mainstreaming CCA into development: resources JICA RESOURCES LEVEL PRIMARY INDICATORS Budget Macro SECONDARY INDICATORS - Separate CCA financing - Pilot-projects - CCA budget mechanism Table 11 – Mainstreaming indicators for the resources dimension on the meso-level 36

2. Mainstreaming CCA into development: resources JICA SP-RCC: • Loan agreement / budget support (2012: 248 million USD; 2013: 278 -328 million USD) • However, lack of financial mechanism to allocate budget to climate change • 2010: creation of framework for financing climate change investments as a priority (Decision No. 8981/VPCP-QHQT, Dec. 10 2010) • 2011: Prime Minister approval • 2012: pilot application • 2013: regular operation of the framework According to the SP-RCC achievement of the SP-RCC” Programme Manager: “most striking 37

2. Mainstreaming CCA into development: resources JICA Primary indicators Budget Secondary indicators Grade Detail No (1) Non-existent Low (2) Commitment of donors to align CC activities with Government plans; increased budget support; understanding of the need for financial mechanism and budget line CCA budget mechanism Moderate (3) High (4) Commitment of donors to align CC activities with Government plans; increased budget support; matching of aid within NTP-RCC; Creation of separate CCA budget allocation mechanism Commitment of donors to align CC activities with Government plans ; increased budget support; aligining aid within NTP-RCC; full implementation of budget line CC projects Table 12 – Detailed grading system for “CCA budget mechanism”, resources dimension 38

Addressing the mainstreaming gaps 39

Three Key Findings (2) Figure 14 – 3 levels of mainstreaming, 3 different outcomes 40

Three Key Findings Figure 15 - Overcoming the barriers through Mainstreamed Donor Policy Dialogue 41

Thank you very much for your kind attention. 42

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