Post on 23-Aug-2020
Carbon Tax or Carbon Trade?What Approach to use in Vietnam?
My StoryMy Country
My Fellowship
My Learning
My Take-away
✓Vietnam & Threat of Climate Change✓PFES policy & success in Vietnam
✓Carbon PFES & Forest Management✓Networking & Field Studying✓New Concepts & Perceptions
✓Carbon Tax & Credit✓Market Mechanism & CSR✓Capitalism & Community Initiatives✓Carbon Policy & Politics
✓Implication & Policy Action
Vietnamthe Socialist Republic
Located in the Tropics
Half a Globe away
VietnamMost Vulnerable to CC
Low-Elevation Coastal Zone
Water Scarcity
Action to Keep Forest
Payments for Forest Environmental Services (P-FES)
a mechanism for forest conservation & preservation
Vietnam - Most Vulnerable to CC
P-FES in Vietnam
• Hydro-Power Plants• Water Utilities• Fish Farms• Tourist Firms
Vietnam Forest Fund(VNFF)
Forest Owners
Payers Fund Management Receivers
Origin and Destination of Funds
P-FES in Vietnam
• P-FES revenue = US$90mil/year
• 45% of the country’s forest areas (6 mil ha) protected
However
• Only watershed forest conservation
• Only water-related, no Carbon-PFES
International Experiences needed
Framework
Payers Fund Management Receivers
• how funds flow• what are the funds for
• who benefits from them
• Drivers• Power shift• Impact
Origin and Destination of Funds
WFI 2018 Fellowship● PSU ● OSU College of Forestry● OSU Department of Forest Ecosystems and Society ● OSU Forests and Climate Change Graduate Program ● Center of Expertise Smart Sustainable Cities ● Citizen Climate Education ● Oregon Department of Forestry ● Pinchot Institute ● Bureau of
Planning and Sustainability City of Portland ● Heron Timber ● Oregon Forest Resources Institute ● Forest Service Pacific Northwest Research Station ● Portland Park & Recreation ●Oregon Forest & Industries Council ● MC Ranch ● Northwest Hardwood NWH ● West Pacific
International ● Society of American Foresters SAF ● Trillium Pacific Millwork ● Star Fire ●Green Energy Fund ● Hoyt Arboretum● Port Blackely ● Finite Carbon ● Forest Seedling
Network FSN ● Te Papa Tipu Innovation Park ● Solid Ground Consulting ● USDA Forest Service ● IDG● Washington State Department of Natural Resources● Vanport Manufacturing Inc ●National Indian Carbon Coalition ● Natural Resources Science and Management Graduate
Program University of Minnesota ● Timberland Appraisal ● Oregon China Sister State Relations Council ● Vietnam Oregon Initiatives VOI ● Forest Park ● PMW Research Station ●
California Forest and Climate Policy Council ● Washington Park ● Columbia River Gorge Forest Service ● Freres Forest Products ● Zena Forest Products ● Portland’s Heritage Tree Committee
● Logger Association ● Hampton Lumbers ● The Joinery ● Weyerhaeuser / Mt St Helens Monument ● Native American Timber Symposium ● Northwest Forest Plan Science Synthesis
– Science Forum ● HJ Andrews Experimental Forest ● Softwood Export Council ● Bull Run Watershed ● Columbia Vista Corporation ● Orick Redwood National Park ● Eagle Fern Park ●
West Multnomah Soil & Water Conservation District
WFI 2018 Fellowship
Several U.S. Examples on Carbon Policy
and Related Models
Cap-and-Trade
Carbon Fee and Dividend
Carbon Tax
Water Quality Trade
1631 Initiative (WA)
Conservation Easement
Clean Energy Fund (PDX)
Example 1
California Cap and Trade
WFI 2018 Fellowship
Example 1: California Cap and Trade
Idea: - Price carbon- Use market mechanisms to reward companies that find ways to reduce their emissions
Complying Entities: Large emitters >25,000 MT/yr CO2eConcept: -“Permit” requirement for every MT CO2ePermits: -“Allowances” and “Offsets” (4% to 8%)
Covered Entities~450~
•Refineries•Power Plants• Large Factories
Greenhouse Gas Reduction Fund
California Air Resources Board (CARB) strategic reserve
Off-set Projects~2bl$~
• Forestry (incl. urban forestry)• Dairy (methane digesters)• Ozone depleting reduction• Mine methane capture • Rice cultivation
Emitters Fund Management Receivers
Origin and Destination of Funds
Example 1: California Cap and Trade•Revenue must be used to reduce GHG emissions•25% of the revenue goes to disadvantaged communities
Entities invest to reduce carbon
emissions
Example 2
Carbon Tax
WFI 2018 Fellowship
Example 3: Carbon Tax
Emitters Fund Management Receivers
Origin and Destination of Funds
Tax carbon by tCO2-e
Carbon Tax
Emitters Fund Management Receivers
Origin and Destination of Funds
“A tax on carbon emissions will unleash a wave of innovation to develop technologies, lower the costs of clean energy and create jobs as we and other nations
develop new energy products and infrastructure”
Henry M. PaulsonTreasury Secretary under President George W. Bush
Example 3Portland Clean Energy Fund
formally the "Portland Clean Energy Community Benefits Initiative 2018"
WFI 2018 Fellowship
Example 3: Portland Clean Energy Fund
Origin and Destination of Funds
Payers Fund Management Receivers
Large retail corporations pay 1%
• > $1 billion annual national sales
• $500K annual Portland sales
• Energy efficiency upgrades• Home weatherization• Solar rooftops• Job training• Local food production• Increase green infrastructure
Clean Energy Fund
Carbon Policy MappingCap-and-Trade
Fee and Dividend
Emitters GGRF “Green” Projects
Vietnam PFES Hydro Power Plants VNFF Forest Owners
Emitters Households
Carbon Tax Emitters Government Households
Permittee Project Developer Forest OwnersWater Quality Trade
1631 Initiative
Easement
$
$
$
$
$
E
E
Clean Energy Fund Retailers CEF “Green” Projects$
Emitters Project Developer “Green” Projects
Sources Project Developer Forest Owners
$
$
E
Take-awayCarbon PricingIncentivize and impose Entities to reduce emission by:• Investing in energy efficient technology• Switching to clean energy
Fund Use• “Clean” and “Green” projects• Forest preservation and conservation• Goods/ services carbon footprint reduction
Target Sources• Large corporate emitters• Government budgets• NGOs• Corporate retail chains• “Off-set” obligations
Rationales• Include social-economic justice• Benefit communities at large• Protect the environment
$
E
Thank you!!!
Phan Manh Tuantuanpm.vietnam@gmail.com