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Implementing Incentives for Climate Resilient Housing Among the Urban Poor in Vietnam

Closed

Adaptation

Buildings and housing

Call 5

Viet Nam

Time consumed

Start: 19-Apr-16 End: 31-Dec-18

Lead Nordic partner

Vista Analyse

Country of Lead Nordic partner

Norway

Local partner(s)

Institute for Social and Environmental Transition (ISET) — Vietnam , Da Nang City Women's Union (WU) , Hue College of Economics —Hue University (HCE-HU)

NCF grant size

498,450

Total project cost

897,891

Methods

climate resilient build, Financial instruments

Country of implementation:

Viet Nam

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Description

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.

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... 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.

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.

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Objective

•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

Results

• Increased resilience: 135 houses have been built or retrofitted as part of the project and are now more resilient towards extreme weather conditions.
• Improved capacity of local stakeholders: The Women’s Union staff’s capacity has been strengthened at multiple levels in operating and managing climate-resilient housing programs.
• Input for policy development: The project recommends that the local and central government in Vietnam base their policies...