The Journal of Asian Finance, Economics and Business

Korea Distribution Science Association (한국유통과학회)
권호 표지
DOI QR코드

DOI QR Code

The Effectiveness of Financial Sources for Climate Change in Vietnam

  • NGUYEN, Thi Nhung (Department of Investment, Faculty of Finance and Banking, VNU University of Economics and Business) ;
  • NGUYEN, Minh Hoa (Department of Investment, Faculty of Finance and Banking, VNU University of Economics and Business) ;
  • VU, Thi Phuong Anh (Department of Investment, Faculty of Finance and Banking, VNU University of Economics and Business) ;
  • DO, Thi Hoang Anh (Department of Investment, Faculty of Finance and Banking, VNU University of Economics and Business)
  • Received : 2022.10.10
  • Accepted : 2023.01.15
  • Published : 2023.01.30
Download PDF
⟨ Previous Next ⟩

Abstract

This research aims to give information about the current situation of five financial sources for climate change in Vietnam, including (i) the State budget used by ministries; (ii) the State budget used by provinces; (iii) Bilateral funds; (iv) Multilateral funds; and (v) Private funds, and then classify them in line with the effectiveness. The working paper's secondary data on spending on CC-related activities, collected from reports of six ministries and 29 provinces, show that the State budget has been crucial in subsidizing CC-related activities in Vietnam. Moreover, domestic investment has accounted for a major part of the total expenditure of ministries and provinces for climate change. In addition, by using primary data collected from surveys sent to twelve experts from 5 groups, such as researchers, practical experts, managers of private funding organizations (such as banks and enterprises), managers of international funding organizations and beneficiaries, and then analyzing the data through the AHP method, the study shows that all climate finance sources in Vietnam are still not very effective. However, private sector funds are considered the most effective financial source for responding to climate change.

Keywords

References

  1. Adams, V. M., Mills, M., Weeks, R., Segan, D. B., Pressey, R. L., Gurney, G. G., Groves, C., Davis, F. W., & Alvarez-Romero, J. G. (2019). Implementation strategies for systematic conservation planning. Ambio, 48(2), 139-152. https://doi.org/10.1007/s13280-018-1067-2
  2. Asian Development Bank (ADB). (2017). Sector assessment (summary): Public sector management (public expenditure and fiscal management). https://www.adb.org/sites/default/files/linked-documents/50051-001-ssa.pdf
  3. AFD. (2011). The AFD carbon footprint tool for projects: User's guide and methodology. https://www.afd.fr/en/ressources/afd-carbon-footprint-tool-projects-users-guide-and-methodology
  4. Biermann, F., & Gupta, A. (2011). Accountability and legitimacy in earth system governance: A research framework. Ecological Economics, 70(11), 1856-1864. https://doi.org/10.1016/j.ecolecon.2011.04.008
  5. Buchner, B., Herve-Mignucci, M., Trabacchi, C., Wilkinson, J., Stadelmann, M., Boyd, R., Mazza, F., Falconer, A., & Micale, V. (2012). The global landscape of climate finance 2013. The Global Landscape. http://climatepolicyinitiative.org/wp-content/uploads/2013/10/The-Global-Landscape-of-Climate-Finance-2013.pdf
  6. Burch, S. L. M., Sheppard, S. R. J., Pond, E., & Schroth, O. (2013). Climate change visioning: Effective processes for advancing the policy and practice of local adaptation. https://www.preventionweb.net/files/7995_APF.pdf
  7. Caruso, R., & Ellis, J. (2013). Comparing definitions and methods to estimate mobilized climate finance. OECD. https://www.oecd-ilibrary.org/docserver/5k44wj0s6fq2-en.pdf?
  8. CIEM. (2021). Attracting the private sector to invest in green growth. https://www.gso.gov.vn/tin-tuc-khac/2021/12/thu-hut-kinh-te-tu-nhan-dau-tu-vao-tang-truong-xanh/
  9. CIF. (2012). Revised CTF results framework, climate investment funds. https://www.climateinvestmentfunds.org/documents/ctf-results-framework-revised-september-2012-document
  10. Department of Climate Change. (2020). Private sector engagement in national adaptation plan development and implementation in Vietnam. https://napglobalnetwork.org/wp-content/uploads/2020/10/napgn-en-2020-private-sector-engagement-in-nap-development-and-implementation-in-Vietnam.pdf
  11. Dilling, L., Prakash, A., Zommers, Z., Ahmad, F., Singh, N., de Wit, S., Nalau, J., Daly, M., & Bowman, K. (2019). Is adaptation success a flawed concept? Nature Climate Change, 9(8), 572-574. https://doi.org/10.1038/s41558-019-0539-0
  12. Do, T. T. H., Nguyen, T. L. A., & Nguyen, T. H. P. (2022). Impacts of climate change and financial support on household livelihoods: Evidence from the northwest subregion of Vietnam. Journal of Asian Finance, Economics, and Business, 9(6), 0115-0126. https://doi.org/10.13106/jafeb.2022.vol9.no6.0115
  13. Dong, K. H., & Nguyen, M. Q. (2020). Management of ODA capital for environmental treatment and climate change projects in Binh Thuan province. Journal of Science, Technology and Irrigation, 11, 14-27.
  14. Dore, J., & Lebel, L. (2010). Gaining public acceptance: A critical strategic priority of the world commission on dams. Water Alternatives, 3(2), 154-171.
  15. Doswald, N., Munroe, R., Roe, D., Giuliani, A., Castelli, I., Stephens, J., Moller, I., Spencer, T., Vira, B., & Reid, H. (2014). Effectiveness of ecosystem-based approaches for adaptation: Review of the evidence-base. Climate and Development, 6(2), 185-201. https://doi.org/10.1080/17565529.2013.867247
  16. Fankhauser, S., & Burton, I. (2016). Spending adaptation money wisely. London: Routledge.
  17. Ford, J. D., Berrang-Ford, L., Lesnikowski, A., Barrera, M., & Heymann, S. J. (2013). How to track adaptation to climate change: A typology of approaches for national-level application. Ecology and Society, 18(3), 202. https://doi.org/10.5751/ES-05732-180340
  18. GEF. (2011). Tracking tool for climate change mitigation projects. http://www.thegef.org/gef/tracking_tool_CCM
  19. Gupta, J., Termeer, C., Klostermann, J., Meijerink, S., Van den Brink, M., Jong, P., Nooteboom, S., & Bergsma, E. (2010). The adaptive capacity wheel: A method to assess the inherent characteristics of institutions to enable the adaptive capacity of society. Environmental Science and Policy, 13(6), 459-471. https://doi.org/10.1016/j.envsci.2010.05.006
  20. Huynh, T. L. H. (2014). Finance for GHG mitigation activities in line with national conditions. Hydrometeorological Journal, 9, 25-29.
  21. Inter-American Development Bank (IDB). (2012). Development effectiveness overview. http://idbdocs.iadb.org/wsdocs/get-document.aspx?docnum=37543955
  22. Irawan, S., Heikens, A., & Petrini, K. (2012). National climate funds: Learning from the experience of Asia-Pacific countries. UNDP. https://www.undp.org/asia-pacific/publications/national-climate-funds-learning-experience-asia-pacific-countries
  23. KFW. (2011). Measuring outcomes, assessing results, learning for the future. https://www.kfw-entwicklungsbank.de/Download-Center/DokumenteEvaluierung/11_Englisch.pdf
  24. Knight, A. T., Cook, C. N., Redford, K. H., Biggs, D., Romero, C., Ortega-Argueta, A., Norman, C. D., Parsons, B., Reynolds, M., Eoyang, G., & Keene, M. (2019). Improving conservation practice with principles and tools from systems thinking and evaluation. Sustainability Science, 14(6), 1531-1548. https://doi.org/10.1007/s11625-019-00676-x
  25. Lamhauge, N., Lanzi, E., & Agrawala, S. (2012). Monitoring and evaluation for adaptation: Lessons from development cooperation agencies. OECD. https://www.oecd-ilibrary.org/environment/monitoring-and-evaluation-for-adaptation-lessons-from-development-co-operation-agencies_5kg20mj6c2bw-en
  26. Le, L. H., & Pham, A. H. T. (2021). Determinants of access to green finance in Vietnam: An empirical research. Journal of Asian Finance, Economics, and Business, 8(9), 0079-0089. https://doi.org/10.13106/jafeb.2021.vol8.no9.0079
  27. Lebel, L., Salamanca, A., & Kallayanamitra, C. (2017). The governance of adaptation financing: Pursuing legitimacy at multiple levels. International Journal of Global Warming, 11(2), 226-245. https://doi.org/10.1504/IJGW.2017.082181
  28. Mai, K. L., Luong, Q. H., Nguyen, T. C., & Do, T. A. (2020). The carbon credit exchange market: International experience and policy for Vietnam. Hydrometeorological Journal, 30, 492.
  29. McKinnon, M. C., & Hole, D. G. (2015). Exploring program theory to enhance monitoring and evaluation in ecosystem-based adaptation projects. New Directions for Evaluation, 47, 49-60. https://doi.org/10.1002/ev.20130
  30. Mendelsohn, R., & Nordhaus, W. D. (1999). The impact of global warming on agriculture: A Ricardian analysis. American Economic Review, 89(4), 753-771.
  31. Morita, T., & Pak, C. (2018). Legal readiness to attract climate finance: Towards a Low-Carbon Asia and the Pacific. Carbon and Climate Law Review, 12(1), 6-14. https://doi.org/10.21552/cclr/2018/1/4
  32. Nakhooda, S., & Amin, A. L. (2013). The effectiveness of climate finance: A review of the clean technology fund. UNCC. https://www.uncclearn.org/wp-content/uploads/library/idb38.pdf
  33. Nakhooda, S., & Norman, M. (2014). Climate finance: Is it making a difference? A review of the effectiveness of multilateral climate funds. Overseas Development Institute. https://odi.org/en/publications/climate-finance-is-it-making-a-difference-a-review-of-the-effectiveness-of-multilateral-climate-funds/
  34. Nelson, R., Kokic, P., Crimp, S., Martin, P., Meinke, H., Howden, S. M., de Voil, P., & Nidumolu, U. (2010). The vulnerability of Australian rural communities to climate variability and change: Part II-Integrating impacts with adaptive capacity. Environmental Science and Policy, 13(1), 18-27. https://doi.org/10.1016/j.envsci.2009.09.007
  35. Nguyen, T. L., Huynh, M. K., Ho, N. N., Le, T. G. B., & Doan, N. D. H. (2022). Factors affecting environmental consciousness on green purchase intention: An empirical study of generation Z in Vietnam. Journal of Asian Finance, Economics, and Business, 9(1), 333-343. https://doi.org/10.13106/jafeb.2022.vol9.no1.0333
  36. Nguyen, T. N. (2021). Green bond: Advantages and disadvantages of its development in Vietnam. International Journal of Business Marketing and Management, 11, 46-53.
  37. Organization for Economic Co-operation and Development (OECD). (2017). Private finance for climate action: Estimating the effects of public interventions. https://www.oecd.org/env/researchcollaborative/WEB%20private-finance-for-climate-action-policy-perspectives.pdf
  38. Pham, T. L., Nguyen, T. L., Dao, M. T., & Doan, Q. T. (2019). Develop a measurement-report-appraisal system for agricultural greenhouse gas emission reduction activities in the NDC of Vietnam. Hydrometeorological Journal, 52, 975.
  39. Saaty, T. (2012). Decision making for leaders: The analytic hierarchy process for decisions in a complex world. Pittsburgh: RWS Publications.
  40. Schalatek, L., & Bird, N. (2016). The principles and criteria of public climate finance: A normative framework. Science and Policy, 13, 459-471.
  41. SE4ALL. (2013). Sustainable energy for all: Global tracking framework overview. http://www.sustainableenergyforall.org/images/Global_Tracking/5-gtf_overview.pdf
  42. Sheriffdeen, M., Nurrochmat, D. R., Perdinan, P., & Di Gregorio, M. (2020). Indicators to evaluate the institutional effectiveness of national climate financing mechanisms. Forest and Society, 4(2), 358-378. http://doi.org/10.24259/fs.v4i2.10309
  43. Smyth, S. E. (2011). Agency and accountability in multilateral development finance: An Agenda for Change. Law and Development Review, 4(1), 66-140. https://doi.org/10.2202/1943-3867.1113
  44. Stein, B. A., & Shaw, M. R. (2013). Biodiversity conservation for a climate-altered future. London: Routledge.
  45. Tippmann, R., Agoumi, A., Perroy, L., Doria, M., Henders, S., & Goldmann, R. (2013). Assessing barriers and solutions to financing adaptation projects in Africa. International Development Research Centre (IDCR). https://idl-bnc-idrc.dspacedirect.org/bitstream/handle/10625/51972/1/IDL-51972.pdf
  46. Tirpak, D., Brown, L., & Ronquillo-Ballesteros, A. (2014). Monitoring climate finance in developing countries: Challenges and next steps (Working Paper No. 1). Washington DC: World Resources Institute. https://www.issuelab.org/resources/18288/18288.pdf
  47. United Nations. (n.d.). Climate change. https://www.un.org/en/global-issues/climate-change
  48. United States Government (USG). (2012). Master indicator list. http://www.state.gov/documents/organization/207793.pdf
  49. Vij, S., Moors, E., Ahmad, B., Md. Arfanuzzaman, Bhadwal, S., Biesbroek, R., Gioli, G., Groot, A., Mallick, D., Regmi, B., Saeed, B. A., Ishaq, S., Thapa, B., Werners, S. E., & Wester, P. (2017). Climate adaptation approaches and key policy characteristics: Cases from South Asia. Environmental Science and Policy, 78, 58-65. https://doi.org/10.1016/j.envsci.2017.09.007
  50. World Bank. (2012). International financial institution framework for a harmonized approach to greenhouse gas accounting. http://www.worldbank.org/content/dam/Worldbank/document/IFI_Framework_for_Harmonized_Approach%20to_Greenhouse_Gas_Accounting.pdf. Washington
  51. Yang, A. L., Rounsevell, M. D. A., & Haggett, C. (2015). Multilevel Governance, Decentralization and Environmental Prioritization: How is it working in rural development policy in Scotland? Environmental Policy and Governance, 25(6), 399-411. https://doi.org/10.1002/eet.1690