Ensuring future water security in Vietnam will depend on meeting a host of critical challenges including emerging water stress, fast deterioration of water quality, and rising water-related disaster risks, resulting in a must to implement solutions to improve water productivity. Rapid increase in water demand will lead to water stress to 11 out of 16 river basins in Vietnam by 2030 during the dry season. In addition, there is a growing competition and needs among multiple sectors for water, against the backdrop of worsening water quality. Climate change exacerbates water challenges, posing additional need to manage water effectively.
These are the key points of discussion of a workshop in which an independent study by the World Bank titled “Towards a Safe, Clean, and Resilient Water System” was launched. The workshop, co-hosted in Hanoi today by the Ministry of Natural Resources and Environment and the World Bank in Vietnam saw the participation from numerous stakeholders as well as international and domestic experts.
At the workshop, Minister of Natural Resources and Environment Tran Hong Ha stressed the challenges that Vietnam is facing in water management: “Pressures from population growth, economic growth, and increasing water demand have put water resources at risk of depletion. These pressures will result in unsustainable development unless water resources are managed in a uniform and coordinated way and shared and used reasonably and effectively.”
The newly-completed study discusses in-depth how Vietnam can manage its water resources in a sustainable way. The study suggests policy actions and the roles the public and private sector can play for effective and sustainable water management.
“Unless decisive steps are taken, water, which has been a driving force behind Vietnam’s rapid growth, will become a brake on development,” said World Bank Country Director for Vietnam Ousmane Dione. “Early actions will ensure that water remains a key ingredient for Vietnam’s growing prosperity.”
The World Bank study recommends improvements in governance, management, and financing of water resources, including strengthening of institutions for development and enforcement of regulations. It also advocates for an integrated approach of water management at the basin level and creating incentives to pollute less and use water more efficiently. Furthermore, disaster response and resilience against escalating floods, acceleration of riverine and coastal erosion, sea level rise, and land subsidence need to be improved. In addition, improving the quality of public spending and encouraging private finance is imperative to broaden the funding sources for improvements in water management.
The study identifies water pollution as the greatest threat that could cost Vietnam up to 3.5 percent of GDP annually by 2035. Urban development, discharge of untreated industrial wastewater, and use of agricultural fertilizers and pesticides are placing unrelenting stresses on the water bodies. According to data from Ministry of Construction, only 46% urban households have connections to the drainage system and 12.5% domestic wastewater is being treated, not to mention untreated wastewater from industrial facilities outside industrial zones. This compromises water quality and related ecosystems.
“This report sends a clear message that sustained economic growth in Vietnam will not be possible without strong action to safeguard water resources,” said Jennifer Sara, Senior Director of the World Bank’s Water Global Practice. “If good decisions are made now, water systems can be strengthened to withstand shocks such as climate change and ensure current and future generations reap the benefits of water. The World Bank’s Water team stands ready to work with the Government of Vietnam to sustain resources, deliver services and build resilience.”
The study suggests strengthening and enforcing regulations to create incentives to improve water quality along with use of cost-effective solutions to control pollution. The study also sheds light on the low productivity of water use, particularly in the agriculture and aquaculture sectors which account for 92 percent of the Vietnam’s water usage. There are opportunities to use water more productively such as switching to crops and irrigation systems that give ‘more income per drop’ while saving water, reducing water usage through the use of innovative technology, and having appropriate tariff mechanisms to create incentives for efficient and productive use of water.
The Bank appreciates its partnership with the Government of Vietnam on water management. In the upcoming time, it will work closely with the stakeholders in the country to provide assistance in implementing the recommendations of the study as appropriate to promote effective and sustainable management and usage of water resources against the backdrop of climate change.
UNIDO supports Budapest Appeal to prevent and manage looming water crises
LI Yong, the Director General of the United Nations Industrial Development Organization (UNIDO) acted as a panelist during the opening session of Budapest Water Summit 2019, which was convened under the motto ‘Preventing Water Crises’ and which aimed at promoting solutions to tackle the emerging water crises.
“Industries can be instrumental to prevent any kind of water crisis: in situations where water is scarce, the application of resource efficient and cleaner production allows industries to drastically reduce their own water consumption”, said LI Yong. “In situations where water is too polluted, green industries can offer solutions for the cost and energy effective treatment of municipal, agricultural and industrial waste water. Even in situations where abundant water results in floods, industries can engage as water stewards and drive the collaborative process of restoring water regulating eco-system services”.
The UNIDO Director General further emphasized the need for pro-active cooperation, dedicated and well-concerted efforts as well as considerable resources. At the same time, and given the importance of water for sustainable development, Li urged not to underestimate the importance of these efforts.
“The United Nations Industrial Development Organization will continue its efforts to support industries to become environmentally friendly”, said LI Yong. “In this way, industries will play an active role to prevent water crises, in terms of water becoming too little, too much or too polluted”.
During the closing session of the Summit, the Budapest Appeal was presented that formulates messages and guidelines for the international community to prevent and manage the looming water crises. In addition, the Appeal provides a comprehensive summary of findings and recommendations from the Summit and introduces the preliminary online consultation process.
The Summit gathered over 2,200 participants from 117 countries in Budapest, including Hungarian President János Áder and Cambodian Prime Minister Samdech Techo Hun Sen as well as numerous ministers, secretaries of state, representatives of United Nations organizations and heads of multilateral financial institutions.
African financial centres step up efforts on green and sustainable finance
When we talk about climate change and sustainable development, the continent that is often highlighted as facing the greatest socio-economic challenges is Africa.
It is in many African nations that the impacts of climate change are hitting the hardest and that communities need the most support to ensure food security, decent housing, access to clean energy and so much more, including jobs for the ballooning youth unemployment which is seeing more than 12 million youth enter the labour market each and every year.
The will and the knowledge exist to turn things around. A survey for Africa Climate Week in March showed that most African nations were already starting to implement their mitigation and adaptation commitments under the Paris Agreement.
But over half of the countries have struggled to mobilize climate finance, less than one quarter have a financing strategy, and only one third have appropriate financial instruments.
There is some movement. The World Bank Group has promised US$22.5 billion over 2021-2025 in climate support in Africa, while nations are increasingly able to secure money from the Green Climate Fund.
Private finance is desperately needed, however, which is why the UN Environment Programme (UNEP)-convened International Network of Financial Centres for Sustainability (FC4S) is launching a new work programme for the continent.
Financial Centres for Sustainability, a global network of 30 financial centres, will work with its five Africa member centres—Abidjan, Cairo, Casablanca, Lagos and Nairobi—to encourage strategic action, collaborate with peers across the continent, and facilitate engagement with major international hubs.
“There is an appetite for investing in Africa, in recognition of the fact that of all the investment bets you can make, this is the one that is sure to come up trumps,” said Patrick Njoroge, Governor of the Central Bank of Kenya, at the launch of the new work programme at the Financial Centres for Sustainability’s annual meeting in Geneva. “There is also an appetite to use the members’ investment muscle to do good and help defend the planet against the ravages of climate change and environmental degradation.”
There is, despite many old-fashioned notions about Africa, plenty of private money in the continent. Nairobi, for example, is a thriving regional hub for banks, businesses and entrepreneurs with money to invest.
But there are many barriers to boosting sustainable finance in African countries, including a lack of clear policies and regulatory frameworks on climate change, a lack of awareness on the sources of climate finance and limited engagement from the private sector.
These barriers, and the different levels of development on the sustainable finance agenda in African financial centres, requires a coordinated strategic effort to help mainstream sustainable finance as a foundational element of financial centre development strategies.
The programme will help the centres assess the green finance landscape in their countries and set strategies for sustainable finance development. It will provide technical assistance on specific green and sustainable finance projects, including support on the development of a green bond market in Abidjan, activating the green bond market in Egypt, and a proposal to advance “green tagging” of bank loans in Lagos.
“Financial centres generate a powerful clustering effect by concentrating banking, capital markets, investing, insurance, professional services with policy and regulation,” said Mohammed Omran, Executive Chairman, Financial Regulatory Authority of Egypt. “Financial centres in Africa are no different. We have a real opportunity to turn African centres into global green hubs and provide the finance the continent needs for a brighter future.”
Financial Centres for Sustainability will also increase policy dialogue and engagement, and collaboration between African centres and the rest of the international network.
Specific actions will include setting clear definitions for green or sustainable finance, integrating sustainability priorities relevant for a given national context into the design and execution of strategies, and identifying options to create strong enabling environments to attract international investment into green and sustainable investment options in local markets.
The message is that with the over 3.5 trillion of financing gap for both the nationally determined contributions and the Sustainable Development Goals implementation, social-driven financing will not be optimal. Africa as a region urgently needs to move from this socially inclined financing to investment financing where returns are environmental, social, economic and financial. This should build on already ongoing initiatives like the innovative financing mechanisms across the continent like the risk-sharing facilities coming up across the continent.
Major Environmental Groups Call On Businesses To Lead On Climate Policy
Eleven leading environmental and sustainable business organizations published an open letter in the New York Times today, urging the CEOs of Corporate America to step up their engagement on climate policy. Signatories include the heads of BSR, C2ES, CDP, Ceres, Conservation International, Environmental Defense Fund, The Climate Group, The Nature Conservancy, the Union of Concerned Scientists, World Resources Institute, and World Wildlife Fund.
In the letter, the organizations call on businesses to adopt a science-based climate policy agenda that is aligned with the recommendations of the Intergovernmental Panel on Climate Change, and with the goal of achieving net-zero emissions by 2050.
The letter highlights three essential actions for businesses to execute this agenda:
- Advocate for policies at the national, subnational and/or sectoral level that are consistent with achieving net-zero emissions by 2050;
- Align their trade associations’ climate policy advocacy to be consistent with the goal of net-zero emissions by 2050; and
- Allocate advocacy spending to advance climate policies, not obstruct them.
Additionally, the signatories call for “robust disclosure of the above actions to ensure transparency and demonstrate leadership, as well as strong corporate governance to enable sustained, strategic and effective engagement in climate policy.”
The recommended actions follow a statement from 200 institutional investors, with a combined $6.5 trillion in assets under management, who recently called on publicly traded corporations to align their climate lobbying with the goals of the Paris Agreement. They also build on momentum from the U.N. Global Climate Action Summit in September, when many companies announced ambitious commitments to reduce their emissions to net zero by 2050 and unprecedented global youth strikes demanded accountability from business leaders.
Further, the groups’ call for corporate leadership on climate policy is in line with the goals of upcoming Santiago Climate Change Conference (COP 25), which will focus on increasing ambitious actions to tackle climate change.
“Corporate voluntary science-based commitments have spurred progress and innovation. But alone they’re not enough. We need strong national policy and regulations to protect business and their customers from the greatest risks of climate change. And we need the voice of business to insist that our government leaders deliver the policies we need. ” said Carter Roberts, President and CEO of World Wildlife Fund, United States. “It’s time for business to make this a policy priority – not only for their own government relations teams but also for the trade organizations that represent their interests.”
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