NDF - Financing for climate change and development projects

NCF: Implementing Incentives for Climate Resilient Housing Among the Urban Poor in Vietnam [NDF C82 B8]

Photo: Haakon Vennemo, Vista Analysis
Photo: Haakon Vennemo, Vista Analysis
 A potential beneficiary, widow with three children. One of the walls of her house collapsed during the last typhoon. It has been rebuilt with the support from extended family, but the house has not been reinforced or made resilient for the next typhoon. The road outside her house has been upgraded and raised. Unfortunately, now, during heavy rains, the water runoff from the road floods her garden and house. Photo NDF.
A potential beneficiary, widow with three children. One of the walls of her house collapsed during the last typhoon. It has been rebuilt with the support from extended family, but the house has not been reinforced or made resilient for the next typhoon. The road outside her house has been upgraded and raised. Unfortunately, now, during heavy rains, the water runoff from the road floods her garden and house. Photo NDF.
Photo:Tran Van Giai Phong, ISET
Photo:Tran Van Giai Phong, ISET
Photo:Tran Van Giai Phong, ISET
Photo:Tran Van Giai Phong, ISET
Photo: Haakon Vennemo, Vista Analysis
Photo: Haakon Vennemo, Vista Analysis
The roof has not been reinforced and is thus highly vulnerable to a typhoon/strong winds. Photo: NDF.
The roof has not been reinforced and is thus highly vulnerable to a typhoon/strong winds. Photo: NDF.
The roof has been reinforced with beams and a second floor has been added to protect against flooding. Photo: NDF.
The roof has been reinforced with beams and a second floor has been added to protect against flooding. Photo: NDF.
20.12.2016
Climate change poses a significant threat in rapidly growing cities in Vietnam. With strong rural-urban migration and low incomes, many households are vulnerable to seasonal typhoons. This project contributes to increasing penetration of storm-resilient housing among low-income households in Central Vietnam.

Vietnam
Implementing Incentives for Climate Resilient Housing Among the Urban Poor in Vietnam
Ref: NDF C82 B8

 

Nordic partner: Vista Analyse
Local partners: Institute for Social and Environmental Transition (ISET) — Vietnam; Da Nang City Women's Union (WU); Hue College of Economics —Hue University (HCE-HU)
Total project cost: EUR 897,891
NCF financing: EUR 498,450
Agreement signed: 19 April 2016
Project classification: Adaptation
Duration: 30 months

Project objective

The main objective of the project is to contribute to increasing penetration of climate-resilient housing in Vietnam that can withstand typhoons, storms and floods. The project aims firstly to develop practical and sustainable incentives for private and public sector actors in Da Nang city to build climate-resilient housing for the benefit of low-income households, and secondly, to build the capacity of Da Nang Women's Union as a catalyst for climate-resilient housing. Through the project, incentive schemes involving loans through a revolving fund, tailor-made technical assistance, information events and grants are offered to near-poor and poor households in Da Nang City.

Main results/outputs

  • Incentive schemes for investment in climate-resilient housing among poor and near-poor households are designed, implemented and evaluated
  • At least 100 retrofitted or newly constructed storm-resilient houses
  • Valuable knowledge about the barriers to investing in climate-resilient housing among poor and near-poor households
  • Robust knowledge about the impact of the implemented incentive schemes
  • Lessons and potential for scaling up

 

Description

Climate change poses a significant threat in rapidly growing cities in Vietnam. With strong rural-urban migration and low incomes, many households cannot afford permanent, high-quality houses and are at risk of severe structural damage during seasonal typhoons, which appear to be increasing in intensity due to climate change. The damage to the structure and contents of their homes further impoverishes these households. The Women’s Union (WU) in Da Nang city, the largest city in central Vietnam, has undertaken a successful program of revolving credit and technical support to enable low-to-middle income households to finance structural upgrades to existing owner-occupied houses over the past 3 years, with the support of the Institute for Social and Environmental Transition, Vietnam (ISET). Analysis of this experience by ISET and the Hue College of Economics has demonstrated clear economic benefits for households. Low-income households currently have limited information of the benefits of safer housing, have limited access to housing technology, are credit-constrained or face combinations of these hurdles. Incentives, both in the form of innovative finance and information measures, are urgently needed to encourage the take-up of climate-resilient housing technologies currently available at relatively low cost.

This project assesses segments of the low-income housing market in Da Nang, and in collaboration with the Women’s Union and other local partners, develops and tests sustainable and innovative incentives for investment in storm-resistant housing suitable for different segments of the low-income housing market. The project will also consider potential support for climate mitigation measures in combination with adaptation measures. Results from pilot-scale implementation with construction and structural upgrading of houses in Da Nang will be carefully analyzed to draw conclusions and recommendations for sustainability and scaling-up of these practices, which will be widely shared with relevant public and private agencies. Conclusions from the project will directly support adaptation (and potentially mitigation) measures appropriate to low-income and typically female-headed households in Da Nang, and should be readily transferable to other Vietnamese cities facing similar risks. The project will build the knowledge and capacity of the Da Nang Women’s Union to serve as an advocate and catalyst for climate change resilience and to support adaptation by vulnerable households.
 

Relevance for climate change

The project contributes to increased resilience to changes in the frequency and intensity of climate extremes due to climate change. While the link between climate change and typhoon frequency and intensity is not firmly established, seasonal typhoons in Vietnam appear to be increasing in intensity.

Innovation aspects

Da Nang Women’s Union (WU) and ISET have experience with improvements for new and existing housing for low to middle income households. The recent typhoon Nari (2013) damaged thousands of homes in Da Nang, but none of 244 homes that had been upgraded were affected by the storm. This initiative was highlighted as a shining example winning UNFCCC's Lighthouse Activities Award during COP20 in Lima, Peru. This project builds on these experiences by developing innovative and sustainable incentive mechanisms through analysis, consultation and implementation, and by combining technical assistance and innovative implementation of incentives for direct investments, with evidence-based policy recommendations for scale-up.

More information

Vista Analyse AS
Implementing incentives for climate resilient housing among the urban poor in Vietnam
Institute for Social and Environmental Transition (ISET) —  Vietnam
Da Nang City Women's Union (WU)
Hue College of Economics —Hue University (HCE-HU)