MONRE MINISTER DETAILS VIETNAMESE CLIMATE CHANGE POLICY

UNCLAS SECTION 01 OF 02 HANOI 002053 SIPDIS SENSITIVE SIPDIS STATE FOR EAP/MLS, EAP/EP, OES/EGC STATE PASS TO USAID FOR ANE, G/ENV STATE PASS TO EPA/OIA (DENNIS CUNNINGHAM AND MARK KASMAN) STATE PASS TO NOAA/NOS/OIA (JONATHAN JUSTI) BANGKOK PASS TO RDMA E.O. 12958: N/A TAGS: SENV ENRG ECON KGHG VM SUBJECT: MONRE MINISTER DETAILS VIETNAMESE CLIMATE CHANGE POLICY Ref: A. State 159374 B. Hanoi 1867 HANOI 00002053 001.2 OF 002 ¶1. (SBU) On December 7, Ambassador Michalak met with Vietnamese Minister of Natural Resources and Environment (MONRE) Nguyen Khoi Pham to highlight U.S. efforts to combat climate change and our desire to play a productive role in the ongoing UN Climate Conference in Bali (ref A). Pham noted the likely severe impact of climate change on Vietnam and detailed Vietnam's efforts to respond and adapt to global warming. Vietnam intended to play an active role in Bali and eagerly anticipated U.S. proposals. Vietnam sought increased U.S. assistance for its efforts, though Pham noted disappointment with U.S. aid to date. Pham confirmed that the GVN will produce a national action plan on climate change by the end of the year. End Summary. Ambassador Michalak Stresses Global Effort -------------- ¶2. (SBU) Drawing from ref a, Ambassador Michalak noted the need for global solutions to climate change and emphasized that the United States intends to play an important role this international effort. International climate change policy should be environmentally effective and economically sustainable. As climate change impacts all nations, all nations must participate in the effort to reduce emissions, while taking into account differing national circumstances. The United States currently contributes to several regional efforts and Ambassador Michalak detailed bilateral cooperation between the United States and Vietnam, particularly USAID Eco-Asia programs to promote cleaner coal and compact fluorescent bulbs. Vietnamese Position at Bali -------------- ¶3. (SBU) MONRE Senior Vice-Minister Nguyen Cong Thanh will lead the Vietnamese delegation to Bali, which will participate actively in all Conference events, the Minister reported. Vietnam fully supports the Kyoto Protocol, to which it was one of the first signatories, as a strong instrument to address climate change through 2012. Though Kyoto did not require Vietnam to cut emissions, the Government of Vietnam (GVN) developed pro-active policies and guidelines to reduce greenhouse gas emissions and intended to present a MONRE-developed five point overview of domestic efforts to the Conference, which includes: 1) GVN legislation to implement the United Nations Framework Convention on Climate Change; 2) expansion of public awareness, education and capacity building; 3) improved research to evaluate economic impacts of climate change; 4) development of a National Action Plan to address the impacts of climate change; and 5) expanding international cooperation with donors. Vietnamese Expectations Regarding U.S. Bali Initiatives -------------- ¶4. (SBU) Pham hoped that the United States would propose post-Kyoto climate change initiatives and solutions that Vietnam could support. At the same time, Pham urged the United States to increase technical and financial support for Vietnamese efforts to reduce greenhouse gas emissions and noted his disappointment with U.S. assistance to date. In particular, Pham requested assistance to help develop policies and legislation, increase education and build capacity, improve awareness of the issue (especially among Vietnamese policy-makers),and transfer modern emissions reduction technology. Vietnamese Response to Climate Change -------------- ¶5. (SBU) Pham remarked that international studies reported that Vietnam would be one of the four nations most severely impacted by climate change. As such, Vietnamese scientists are calculating projected sea level increases and likely environmental and economic effects. Pham noted that the GVN had already instituted "step-by-step" policies to address climate change through command and control measures, cleaner production incentives, and clean development mechanism (CDM) implementation. The GVN has instructed energy intensive sectors to become more efficient, while switching HANOI 00002053 002.2 OF 002 from coal inputs to natural gas. (Note: At the same time, the GVN's Energy Master Plan envisions doubling coal-fired energy capacity by 2025 through the construction of thirty new coal plants (ref B).) The GVN also will discourage the development of heavy polluting industries and joint ventures that rely upon backward technology. Vietnam has begun instituting end-of-pipe measures to reduce emissions at factories and power plants, through financial support and tax incentives. In addition to these carrots, Pham noted, the GVN also uses the stick, and has closed factories that do not comply with emissions limits. (Note: Pham acknowledged that the GVN subsequently allowed high-emitting factories to reopen due to employment concerns, but claimed that the factories were required to limit production.) MONRE to Lead Efforts to Draft Climate Change Action Plan -------------- -- ¶6. (SBU) Prime Minister Nguyen Tan Dung recently assigned Pham responsibility to coordinate GVN efforts to draft the National Action Plan to respond to climate change. The Action Plan will be drafted by an interagency task force headed by Pham and will detail Vietnamese strategies to adapt to global warming impacts on water resources, agriculture, forestry, energy, transportation, coastal zone management, human health, and aquaculture/fisheries. Ambassador Michalak noted that at a donor-GVN consultative group meeting earlier in the day, a group of donors had strongly encouraged the Prime Minister to use his leadership to strengthen Vietnamese efforts to control climate change and adapt to its impacts. Pham stated that he hoped to have a draft Action Plan completed by the end of the year at which time MONRE will provide copies for donor review. MICHALAK