Hanoi(VNA) – Encouraging private investment in green growth projects was among keytopics at a conference to review mid-term implementation of the national greengrowth strategy in the northern region in Hanoi on December 12.

The discussion ofthe topic aims to provide updates on the current status of national policiesand initiatives for calling private investment in green growth, and outlinedobstacles and challenges for the private sector, thus making recommendations toboost the green growth in the region.

At the conference,experts said the public budget only afford to cover 30 percent of expenditurefor green growth in the 2016-2020 period, and it was essential that theremaining must be borne by the private sector.

“The public fund canand should serve only as a catalyst, creating favourable conditions for privateinvestment,” Pham Hoang Mai, head of the science, education, natural resourcesand environment department, under the Ministry for Planning and Investment.

According to theGovernment, based on marginal abatement cost curve (MACC), towards 2020,Vietnam needed at least 31 billion USD in investment for green growth inseveral polluting industries, except agriculture. As Vietnam ratified the Parisagreement on climate change in 2016, the country needs to honour its commitmentto cut back on green-house-gas emissions, which would require about 21 billionUSD.

Yet, despite afairly comprehensive system of policies and institutions to call for privatesector investment and enthusiasm, many challenges stand in the way, Inertia indecision-making level, the limited number of start-ups in green energy,difficulties in accessing international green-development funds, and short-termvision over long-term ones are persistent problems.

One example,according to Le Duc Chung, a senior expert in the Ministry of Planning andInvestment, in the south-central provinces where solar potentials aresignificant, the authorities remained overly cautious on the promotion of thiscleaner form of energy. Binh Thuan, for example, in its plan, officiallyaccounts for 850 megawatt (MW), a meager five percent of the total output thatinterested private investors can produce.

On the other hand,private businesses, despite being aware of the benefits of green growth, remainreluctant to place their investments in what, in their eyes, are “risky andpotentially disrupting changes”.

Chung cited the caseof offshore fishing companies hesitating to switch to LED lighting despitestudies pointing out that such move could save 100 million USD a year.

The planningministry said it wanted the National Assembly to be more persistent in askingGovernmental agencies to follow through on green-growth tasks and commitments.It also called for tighter implementation of environmental taxes for pollutersvia carbon taxes, easier-to-access financial support and policies forstakeholders as well as monitoring mechanisms.

At the conference,UNDP representatives, Global Green Growth Institute and the German government’sinternational cooperation agency GIZ pledged to help northern provinces devisegreen growth models exclusively for their localities.-VNA