96565 Financing Vietnam’s Response to Climate Change: Building a Sustainable Future Vietnam Ministry Key Findings and Recommendations of the Climate of Planning and Investment Public Expenditures and Investment Review The Government of Vietnam (GoV) has conducted a Climate Public Expenditure and Investment Review (CPEIR) with the support of the World Bank and the United Nations Development Programme (UNDP). The review examined Vietnam’s policies and climate change expenditure for the period 2010–2013 from five ministries (MONRE, MOIT, MARD, MOC, and MOT) and three provinces (Bac Ninh, Quang Nam and An Giang). To assess the public expenditure and improve alignment with policy goals and targets, a Typology of Climate Change Response Expenditures (TCCRE) was developed. This typology was used to classify the government’s spending on its climate change response into three pillars: (i) Policy and Governance (PG), (ii) Scientific, Technological and Societal Capacity (ST), and (iii) Climate Change Delivery (CCD). The typology also examined how expenditure within each pillar and in each sector is relevant to Vietnam’s climate change response (CC-response). Since roughly 70 percent of the total investment spending is allocated at the provincial level, the analysis does not represent the totality of Vietnam’s CC-response, but still offers substantive insight into spending, in particular through a comprehensive focus on the five key line ministries. Based on its findings, the CPEIR proposes solutions for how to accelerate Vietnam’s CC-response through the state budget and informs decision makers on readiness for scaling up the CC-response while increasing coher- ence across sectors’ and provinces’ policies. The CPEIR report is released at an opportune time, allowing the review’s recommendations to inform the formulation and implementation of the SEDP 2016–2020, and enabling/ promoting the GoV’s post-2015 climate change and green growth response program. The full review and background notes are available on the website of the Ministry of Planning and Investment that was established to track Climate Finance Options for Vietnam (http://cfovn.mpi.gov.vn), as well as on the websites of the World Bank (www.worldbank .org/en/country/vietnam) and UNDP (www.vn.undp.org). Climate change impacts and a carbon intense economy threaten Vietnam’s development progress. Climate-related hazards have adverse effects on the national growth and poverty reduction, on the poor and several sec- tors of the economy simultaneously. According to the Cli- mate Change Vulnerability Index, Vietnam is considered one of 30 “extreme risk countries” in the world. The country is already experiencing increases in temperature, sea level rise, intensifying storms, and more frequent floods and droughts, which cause loss of life and damage the economy. The rural poor are at high risk given their reliance on the natural resources for the livelihood, par- ticularly in agriculture and fisheries. The Mekong River Delta and Red River Delta have already suffered from saltwater intrusion, threatening agricultural productivity and the millions of people relying on these watersheds for their income. Urban populations core climate change policies in Vietnam comprise the National living in informal settlements are also at risk; particularly to suffer Climate Change Strategy (NCCS) and Green Growth Strat- from heat and humidity extremes, and to floods and storms. egy (VGGS) as well as their related Action Plans. These poli- cies are supported by programs that focus on climate change At its current rate of growth, Vietnam will become a major and green growth—for example, the National Target Program greenhouse gas (GHG) emitter. Although Vietnam has his- to Respond to Climate Change (NTP-RCC) and the Support torically been a minor contributor to global warming, projections Program to Respond to Climate Change (SP-RCC)—and a show a fourfold increase of the total net emissions between 2010 host of related strategies focused on renewable energy, energy and 2030 [1]. Vietnam’s emission growth is one of the highest in efficiency, disaster risk reduction and management (DRRM), the world and its carbon intensity is now the second highest in Reducing Emissions from Deforestation and Degradation the region, after China. These increases are mainly driven by the (REDD+), and science and technological development. With projected growth in the use of coal for power generation, which is these policies and programs in place, the basis for Vietnam’s predicted to account for more than 50 percent of the energy mix CC-response has strengthened. However, establishing a more by 2030 [2]. effective CC-response will require developing more policy and institutional capacity, in particular for implementing, mobiliz- Achievements and challenges in policy ing more resources, and providing additional support across and expenditure national and sub-national levels. Mainstreaming CC-response into sectoral policies has pro- The implementation of national climate gressed in some cases, but remains limited in others. Some change and green growth strategies and progress has been made in areas such as water, energy, and action plans continues to shape Vietnam’s DRRM, however the forestry sector, roads and transportation, response to climate change, but further and construction can benefit more from deeper integration. harmonization with sectoral and sub- Recent advances in, and modernization of, Vietnam’s public national policies is necessary to ensure both financial management system can help ensure mainstreaming adaptation and mitigation goals are reached. of CC-responses and provides opportunities for streamlining data management to support the ongoing effectiveness of cli- Vietnam recognizes the challenges it faces and has proac- mate change interventions. tively developed national, sub-national and sectoral policies and programs that aim to address climate vulnerability and Adaptation to climate change is considered as an immediate promote a low carbon, green growth development path. The priority and is the furthest advanced in policy and practi- cal implementation, but more needs be done to ensure har- [1] SR Vietnam (2010). Vietnam’s Second National Communication under the United Nations Framework Convention on Climate Change. Hanoi: Socialist monization with DRRM. The GoV has carried out a signifi- Republic of Vietnam, Ministry of Natural Resources and Environment, page 56. cant amount of work to establish scenarios of climate change [2] The World Bank/ESMAP and DFID “Charting a Low Carbon Development impacts in different regions to help formulate and implement Path for Vietnam” 2014 study shows that the incremental investment of a low- adaptation responses, but the use, uptake, and integration of carbon development scenario over the BAU is estimated at US$ 2 billion per year on average during 2010–2030–approximately 1.0% of the country’s GDP. This the scenarios and climate risk information needs to be strength- does not take into account the additional costs of adaptation required. ened and taken into account when planning a CC-response. In 2 Total climate change appropriations for five line ministries, followed suit (from about VND 4300 billion to VND 3800 NTP-RCC, and NTP-EE, 2010–2013 billion). As a percentage of GDP, spending on CC-response still 5000 25 remains low, which is estimated at only 0.1 percent of Vietnam’s Percent of Total Budgets GDP. To move from a business-as-usual (BAU) scenario to a low- (constant price 2010) 4000 20 carbon and climate resilient development path, a higher share VND billion 3000 15 will be required in Vietnam [2]. 2000 10 1000 5 CC-response spending is mainly directed 0 2010 2011 2012 2013 0 towards large-scale infrastructure projects Adaptation Adapt. & Miti. that build resilience, but the budget Mitigation % of LM budgets dedicated toward low-carbon action is also growing. addition, while the majority of current SEDPs at the national From 2010–2013, the GoV allocated about 88 percent of and provincial level, as well as the sectoral master plans for the CC-response financing for projects that offered a signifi- period 2011–2020, reflect some DRRM priorities, more efforts cant amount of climate change adaptation co-benefits. The are needed to sufficiently mainstream climate change. allocations largely consist of MARD irrigation and MOT road Mitigation policy has become a domestic priority, with spe- transport projects, which in total account for 92 percent of cific targets set for GHG mitigation, but these targets are 2010–2012 CC-response expenditures and 2013 appropriations. often conflicting and difficult to achieve due to the disin- MARD attains the largest share of spending with 79 percent of centives. Vietnam’s GHG emission mitigation targets across implemented CC-response spending followed by MOT, which policies and programs are diverse (in units, baseline and time- accounts for 13 percent of CC-response spending. In general, scale) and often overlapping or unrealistic. This prompts the these are activities that display attributes where indirect adapta- need to consolidate mitigation targets across plans, policies and tion and mitigation benefits may arise but they are not explicitly sectors to ensure more effective delivery. Furthermore, indirect listed in project objectives or stated results or outcomes. subsidies on the use of fossil fuels for power production and A growing amount of financing from the recurrent budget transport, and the current pricing policies, will make it difficult has been directed towards mitigation. From 2010–2013, the to achieve current and future mitigation targets. share directed toward mitigation action accounted for only two To lead, coordinate, harmonize, and monitor Vietnam’s percent. However, by 2013 the mitigation budget increased CC-response, the GoV has established the National Commit- to 3.9 percent, mainly due to increases in recurrent spending tee on Climate Change (NCCC), but its oversight role needs through the National Target Program on Energy Efficiency. to be enhanced. With the establishment of the NCCC, inter- Recurrent CC-response spending has also financed projects that sectoral coordination has been strengthened, but reporting on contribute to both adaptation and mitigation objectives, which progress towards climate change and green growth objectives total about 10 percent of CC-response spending overall. still needs improvement. The recent establishment of the Viet- nam Panel on Climate Change (VPCC) offers an opportunity Total climate change expenditures (investment and recurrent) by line ministries from 2010–2013 (2010–2012 implemented, to advise the NCCC on policy and scientific aspects. 2013 budgeted) 6000 Despite a tightening fiscal environment, the GoV shows continued dedication to spending VND billion (constant price 2010) 5000 on its CC-response, but more effective 4000 funding is needed to successfully face the scale of Vietnam’s climate change challenge. 3000 The budget devoted to CC-response accounts for a substan- 2000 tial share of the total budgets of the five studied ministries, reflecting an existing large platform to further address the 1000 climate challenge in Vietnam. On average 18 percent of the studied line ministries’ budgets are dedicated to funding climate 0 2010 2011 2012 2013 change related activities. However, given that ministries’ total budgets have decreased, the total allocation for CC-response has MOT MONRE MOIT MOC MARD 3 Two provinces (Bac Ninh and Quang Nam) have allocated a significant amount of their budgets towards CC-response (4 percent each), while An Giang has only devoted 1 percent. However, allocations for climate change activities for all of the three provinces have increased at a faster average annual rate than their total budgets. Financing of the recurrent budget is essential as it funds mitigation response as well as Scientific, Technological and Social Capacity and Policy and Governance activities. The GoV’s CC-response spending is dominated by invest- ments (92 percent), while recurrent spending is much lower; though recurrent spending has increased as a share of over- all spending in recent years. Most mitigation activities are Most expenditure has been focused on funded through recurrent spending, and though overall recur- Climate Change Delivery, while little has rent spending saw a slight decrease in the period from 2010 to 2013, the overall share dedicated to mitigation tasks grew from been dedicated to Scientific, Technological 7 percent to 22 percent of the recurrent spending. MOIT’s CC- and Social Capacity, and Policy and response financing—though not large—is mostly funded under Governance activities. the recurrent budget with a focus on energy efficiency activities. The bulk of spending by the five ministries studied is ST and PG activities are important as they support enabling focused on climate change delivery (CCD) activities. The activities that build capacity for CCD implementation. large share of spending at the ministerial level (89 percent) is 94 percent of financed ST activities are projects and programs targeted at CCD. The GoV’s CC-response spending has pro- that develop science and technology as a foundation for policy vided limited finance towards some tasks that are essential for formulation, impact assessment, and the ongoing identification building a climate-resilient low-carbon economy. For example, of appropriate climate change adaptation and mitigation mea- activities whose main objectives or desired results are address- sures. The very small portion of CC-response expenditure dedi- ing saline intrusion, improving water quality and supply, and cated to PG activities predominantly financing the development improving resilience in fisheries and aquaculture have received of action and sectoral plans. little attention, and only a very small part of the budgets in the five ministries has been dedicated to concrete mitigation such as The NTP-RCC has played a significant role in the recurrent low-carbon energy generation and energy efficiency measures. budget. It has provided strong technical inputs to Vietnam’s CC-response by supporting mostly recurrent spending (about Only a small proportion of CC-response spending has been 40 percent) that proactively targets activities to improve the allocated to Scientific, Technological, and Societal Capacity country’s enabling environment and capacity to deliver CC- (ST), and Policy and Governance (PG), each of which is fun- response investment. About 51 percent of the NTP-RCC expen- damental for creating the enabling environment for CCD diture is directed towards developing ST, and about 31 percent activities. While ST accounts for 9 percent, PG accounts for directed at PG. only 2 percent of CC-spending. Most of the work under ST and PG is carried out under MONRE’s relatively small budget, with 61 percent supporting ST and nearly the remainder of the bud- CC-response spending is not fully aligned get focused on PG, with only a very minor part aimed at CCD with NCCS and VGGS policy objectives. tasks in water management. CC-response expenditure is primarily targeted towards the CC-response spending from the three studied provinces NCCS and VGGS objectives of “food and water security” (An Giang, Bac Ninh, and Quang Nam) reflects the same (63  percent) and “sustainable infrastructure” (74 percent), trends found at the ministerial level. Primary empha- while other NCCS and VGGS objectives remain underfunded sis by these provinces has been on CCD activities and less or not funded at all. In particular, PG activities that support so on ST and PG. This is consistent with the relative lim- adaptation and mitigation policy instruments and a number of ited capacity at the provincial level and the need for cen- CCD tasks such as coastal and river protection, saline intrusion, tral and sectoral inputs on policy and scientific support. and improved water quality and supply remain underfunded. 4 Total climate change expenditures (investment and recurrent) 6 percent of financing from allocated projects is captured under by NCCS strategic objectives (2010–2012 implemented, 2013 the VGGS; all directed to the “development of sustainable budgeted by constant price 2010 VND billion) infrastructure for transportation, energy, irrigation and urban Int. Cooperation/ Proactive works.” Given that the FM has been identified as a financing Sci./Tech. integration (11%) disaster Comm. Cap. Dev. (4%) source for the implementation of the newly launched Green prep./climate Dev. (1%) monitoring (5%) Growth Action Plan (GGAP), there is a significant need to Increase role review selection criteria and the review processes (under Decision in Gov't in CC-response (2%) No. 1719/QD-TTg dated October 4, 2011) and the guidance to implement this FM (under joint inter-ministerial Circular GHG emission reduction (3%) No. 03/TTLB-BTNMT-BTC-BKHDT dated March 5, 2013) for project selection under the FM to better align its objectives Suitable proactive response to with the GGAP. SLR (0%) Protection and sustainable Food and Water Development partner funding plays an Security (63%) dev. of forests important role in financing CC-response. (7%) Official development assistance (ODA) for CC-response has risen strongly over the past decade. Vietnam has mobilized its own resources for CC-response, but Development Partner (DP) assistance has contributed about 31 percent of total CC- response expenditure. While the main emphasis has been to Overall, about 17 percent of CC-response financing was not support CCD activities, both loan and grant assistance show capable of being tagged in accordance with VGGS policy objec- a relative increase in PG activities. A significant amount of DP tives, confirming that direct financing towards some resilience resources are also being directed towards State Owned Enter- activities is not captured within the VGGS policy framework, prises (SOE) for climate change related tasks, particularly for even though its main climate objective is to promote low-carbon energy efficiency and renewable energy (about VND 10,000 green growth. billion for 2010–2013). Initial allocations from the SP-RCC Financial Mechanism The NTP-RCC serves as a good example of leverage (FM) are largely covered under a select few NCCS objec- ODA to support Vietnam’s CC-response. The NTP-RCC was tives, and are generally not captured under the VGGS catalyzed by DP funding through the state budget. It serves objectives as these mostly consist of adaptation activi- a specific important role as it has given considerable empha- ties. The FM, created in 2010 to finance CC-response projects sis to enabling activities supporting mainstreaming of climate under a set of criteria adopted by the Prime Minister in 2011 action and capacity development; 51 percent of its expenditure has thus far financed activities with an emphasis on improv- is directed towards developing ST as a foundation for the GoV’s ing the resilience of coastal areas and riverbanks. Only about CC-response agenda. 5 Recommendations for moving forward The recommendations of the CPEIR aim to assist the GoV enhance its CC-response by improving alignment of policies, plans and financing to achieve climate change adaptation and mitigation goals, and by better mobilizing, allocating and using resources to increase scale and effectiveness. The following recommendations are underpinned by the includes a set of components, objectives and underlying activi- findings and the analyses of the CPEIR and, together ties to guide implementation of the proposed Action Plan with its proposed Action Plan, are based on a framework and help the GoV improve its CC-response. Effective cross- that is organized around two pillars: (a) climate plan- sectoral engagement is central to the whole effort; as such, ning and budgeting reform, and (b) climate policy and the two pillars are connected by a strong coordination and institutional strengthening & coordination. Each pillar support body. Pillar A: Climate Planning Pillar B: Climate Policy and Institutional and Budgeting Reform Coordination and Strengthening Change Committee National Climate A1 Establishing CC-Response as Part B1 Strengthening CC Institutional of 5-year SEDP Coordination A2 Reviewing, Assessing, and Recording B2 Consolidation and Harmonization CC-Relevant Expenditure of Adaptation and Mitigation Policies A3 Monitoring and Reporting CC-Response B3 Improving Climate Finance Architecture Program Central Government Agencies and Provinces Pillar A: Climate Planning and projects to address high-priority vulnerable regions and issues. Budgeting Reform To effectively introduce CC-responses into the 2016–2020 SEDP, it is critical that MPI and MONRE build on the key find- A major effort is needed to establish ings of this CPEIR, particularly with regard to mainstreaming CC-response into sectoral and provincial programs, which can CC-response as a central element of the have a major effect on the CC-response. forthcoming five-year Socio Economic Development Plan. Building capacity to review, assess, prioritize, Improving forward planning of the national climate change appraise and record climate change frameworks through the 2016–2020 SEDP is essential to expenditure and green growth relevant establish the strategic direction for CC-response plans and expenditure will help the GoV to manage expenditure. Mainstreaming CC-response into sectoral and its CC-response program and strengthen provincial programs can have a major effect on the GoV’s CC-response. It will also further uncover the CC-response channels for financing the response. potential in each of the major sectors. This will facilitate the Establishing a policy-based classification of all CC-response development of detailed guidelines for each ministry and prov- expenditures and strengthening procedures to assess and ince on the approach to be taken in the preparation of action appraise its relevance to climate change adaptation and plans and CC-relevant projects and programs for the 5-year and mitigation objectives will enable stronger integration of the annual plans and budget submissions. The SEDP process also CC-response into the planning and budgeting cycle. The provides an opportunity to review and establish joint activities to CPEIR demonstrates how the Typology of Climate Change develop multi-sector and landscape and area-based planning and Response Expenditures (TCCRE) developed for the expenditure 6 analysis can be used to assess the CC-relevance of plans and pro- an M&E system for climate change is a complex process due to grams as well as help review and guide the screening, prioritiza- the crosscutting nature of CC-responses. However, a cohesive tion and management of CC-response policies. Refinement of, M&E system can be initiated with an early emphasis on capac- and training for, the TCCRE is critical to enable mainstreaming ity enhancements and a focus on strategically important indica- CC-response and Green Growth by all line ministries and provinces tors at all levels of implementation. In the long term an effective into the SEDP planning and budgeting process. In particular, the M&E system will require sustained effort, supported by MPI adopting of a refined TCCRE would allow the Government to: and MONRE. M&E on CC-response spending is currently obstructed by limited definition of project objectives and a lack 1. Provide a regular, comprehensive overview of the distribu- of verifiable KPIs, and compounded by highly decentralized tion of total spending on the CC-response, including align- management of many national CC-response programs. Effec- ment with country climate change and green growth strate- tive and strategic M&E is essential to CC-response account- gies, across line ministries and provinces; ability and long-term planning. Combined with the further 2. Facilitate closer cooperation between levels of government implementation of the TCCRE, progressive implementation of and between the GoV and development partners; an M&E support system will help address these issues. 3. Establish accountability for use of funds and achievement of results relative to CC-response objectives; and, as a result; Pillar B: Climate Policy and Institutional Coordination and Strengthening 4. Strengthen channels for financing Vietnam’s CC-response and guide resource mobilization from domestic and inter- national sources. Strengthening the role of the NCCC for policy coordination and priority setting between adaptation and mitigation policies Enhanced use and strengthening of climate will help enhance linkages to the planning reporting are necessary to progressively and budget cycle. ensure improvement in the effectiveness of The role of the NCCC will be vital in the oversight of the the delivery of CC-response spending. NCCS, VGGS and other climate-related programs to ensure Effective reporting is essential to CC-response policy cred- that they are coordinated and their implementation is ibility. The GoV should regularly prepare and release a Climate harmonized. Harmonizing priorities across key adaptation Report to show how CC-response expenditure has been spent, and mitigation policies and programs and linking these with and give a broad assessment of achievement against the stated the budget and planning cycle is essential for setting priori- objectives. Such a report should be considered as an essential ties. It will require significant strengthening of the NCCC’s component of climate change policy implementation. The avail- oversight role so it can better assist with synchronization of ability of regular and timely data on CC-response expenditures, overall program and project priority setting mechanisms, and through the application of the TCCRE, would greatly enhance ensure strengthened alignment between financing mecha- the relevance and significance of the report and would buttress nisms, budgeting, and delivery of mitigation and adaptation political and administrative control and direction of the over- activities. all CC-response program. Over time, reports should become more comprehensive, including assessments from all sectors Strengthening the information flow to the NCCC on the and provinces to fully reflect policy developments and achieve- achievement of policy objectives, complemented by a har- ments in relation to the GoV’s adaptation and mitigation goals. monized M&E system, can reduce the risk of fragmenta- Furthermore, the Treasury and Budget Management Informa- tion, improve targeting of resources and maximize mitiga- tion System (TABMIS) can help incorporate all climate change tion and adaptation benefits. Enhanced information flow and relevant projects in the State Budget, and can use its accounting, coordinating mechanisms will also help to ensure that all rel- reporting, and bank reconciliation facilities to track spending evant information is provided to key ministries and agencies. and ensure full financial accountability of all transactions pro- The NCCC’s role should therefore be significantly strength- cessed through the system. As such, the pilot work on channel- ened. Setting up appropriate technical capacity, combined with ing ODA through TABMIS that is in place for the National strengthened high-level coordination, should help set priorities Target Programs should be accelerated to all DP programs. at a technical and evidence-based level in all program activities, as well as allow for high-level assessment of the overall balance The GoV should review its current capacity, and speed up of the CC-response program (with scientific support from the the development of a monitoring and evaluation (M&E) sys- VPCC), combined with identification of technical and financial tem for its CC-response and development of strategic key gaps. Strengthening the capacity of the NCCC Standing Office performance indicators (KPIs) to assess impact. Designing (SO) is necessary to ensure the implementation of a harmonized 7 M&E system that is linked to the planning and budget cycle and Strengthening Vietnam’s climate finance covers the range of Vietnam’s CC-response. The SO represents architecture would allow coordination and a vital link in channeling high-quality, verified and succinct information to the NCCC. mobilization of resources for CC-response activities and identification of key policy and fiscal risks and gaps. Coordinated implementation of adaptation The climate financial architecture should be strengthened and mitigation policy responses is needed. and unified as a result of stronger planning and budget- Climate change adaptation planning, financing, and policy ing, strategic M&E development, and more effective inter- implementation need improvement to effectively respond ministerial coordination. This should provide a basis for iden- to growing climate change risks. The significant work done tifying policy and financial gaps and overlaps. Rather than a on climate change scenarios, as well as on risks and vulnerabil- multitude of programs and strategies competing for available ities, should be extended to all relevant sectors and provinces in funds, it should be possible to review the budget result and the order to identify and take action against climate change-related Climate Report to narrow the scope of financing mechanisms vulnerability. This process should be institutionalized to to more specific targets and sources of funds. The existence of ensure that ongoing resilience building is aligned with revised a more comprehensive mechanism will, in itself, help to attract versions of the climate change scenarios as they are generated. funding sources and provide a basis for strengthening and Both climate-related vulnerability and DRRM responses across designing suitable financing mechanisms. As such, the financ- a number of line ministries cover adaptation responses, but a ing framework should be harmonized to focus clearly on policy more effective response to vulnerability should be instigated to implementation goals in climate change adaptation and mitiga- increase alignment of adaptation and DRRM approaches both tion, and to strengthen or establish appropriate mechanisms for in higher-level policy objectives as well as in institutional coor- financing which are linked directly to these goals. dination. Adaptation and DRRM teams should jointly develop more integrated vulnerability assessments and link project-level To make the above recommendations a reality, steps need M&E systems to higher-level assessment against adaptation to be taken in the form of the finalization of a national indicators. This should lead to a more comprehensive yet prac- action plan, with emphasis on immediate actions to estab- tical M&E system built on international practices in a locally lish a basic CC-response platform in support of the SEDP. tailored way. Finally, better design standards are an important The GoV should take specific steps to implement the CPEIR part of the CC-response, and would lead to improved appraisal recommendations on a pilot basis (with the entities that have of investments. Raising design standards to meet both adap- already been involved in the CPEIR). These steps, which are tation and mitigation objectives should be emphasized in detailed in the report, should be initiated immediately as part of SEDP discussions with agencies involved in construction the upcoming annual and five-year 2016–2020 SEDP planning activities. and budgeting cycle. Implementation of mitigation policy should be evidence- based and linked to global efforts. Mitigation involves com- plex policy issues that will be resolved progressively. For the GoV to meet its demonstrated commitment to low-carbon growth, a national Monitoring, Reporting, and Verifica- tion (MRV) system needs to be developed to identify, track, and report on trends in GHG emissions. Further, mitiga- tion policies should link with global and national action on GHG emissions abatement and green growth targets. Key tasks for implementing mitigation policy are to: (i) review cur- rent mitigation activities and develop consolidated mitigation targets for post-2020 and an implementation roadmap for low- carbon development options; and (ii) establish a consistent fiscal policy framework to encourage reduction of fossil fuel use. The GoV’s policy and management of energy SOEs is also crucial and should be reviewed given that they execute the bulk of energy investment and sale of energy to the public. In addition, the role of REDD+ as part of an overall coherent framework for mitiga- tion needs to be determined. 8