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In 2017, Vanuatu's economy grew by 4.4% with a strong performance over the last three previous years. Subsequently it was further projected for the economy to grow by 3.4% in 2018 from 2017 growth levels. Growth was primarily driven by construction activities related to the on-going infrastructure development projects and reconstruction projects from tropical cyclone Pam (VNSO 2019; RBV 2018)
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Vanuatu is geographically located in the "ring of fire" and the "cyclone belt" of the Pacific. The island nation is located in a seismically and volcanically active region and has high exposure to geologic hazards, including volcanic eruptions, earthquakes, tsunamis and landslides. Almost 81% of its landmass and 76% of its population is exposed to two or more potential hazards including volcanic eruptions, cyclones, earthquakes, droughts, tsunamis, storm surge, coastal and river flooding and landslides.
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Vanuatu is traditionally known for its strong cultural heritage tradition activities and subsistence farming. The four mainstays of Vanuatu's economy are agriculture, tourism, offshore financial services, and raising cattle. Exports include copra, kava, beef, cocoa, and timber, and imports include machinery and equipment, foodstufts, and fuel.
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The Republic of Vanuatu is an island nation located in the Western Pacific Ocean. Vanuatu is an archipelago of over 80 islands stretching 1,300 kilometers from North to South in the Western Pacific Ocean. Vanuatu is located between latitude 12 to 23° South and longitude 166° to 173° East. Vanuatu's terrain is mostly mountainous, with narrow coastal plains with a total land area of 12,336 km2 and a maritime exclusive economic zone of 680,000 km2. Almost 74% of the land area in Vanuatu is covered by natural vegetation, with around one third covered by forest, which is more than 35.1% (440,000 hectares covered by tropical forest)
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The Vanuatu's enhanced NDC will be implemented in close coordination with other line ministries like Ministry of Infrastructure and Public Utilities (MIPU), Ministries of Education and Health, Ministry of Finance etc. other government departments specially Department of Energy (DoE), Department of Environment, Utilities Regulatory Authority (URA); Public and private sector mainly UNELCO Engie (UNELCO), Vanuatu Utilities & Infrastructure Limited (VUI) and Other Private Sector Service Providers; Doner agencies and development partners and Non-governmental Organizations (NGOs).
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The tentative cost of achieving the Vanuatu's conditional mitigation targets is estimated to be USD $ 173.6 Million This cost estimation does not cover the costs of existing measures i.e. measures included in the first NDC of Vanuatu); since these measure are already under implementation and already budgeted under NERM:2016-2030. Furthermore, the costs for additional measures are tentative and based on similar international experiences, national circumstances of Vanuatu and other assumptions. A detailed scoping and feasibility study of enhanced NDC measures will be conducted under the NDC implementation roadmap development to determine the exact additional investment requirements.
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The activities will be implemented over a period of 10 years (2021-2030) by integrating them under the budget as various subsidy policies, projects or programmes. As these targets are well aligned with the country's existing policies and plans, they will have high ownership and will be implemented in a timely manner. Vanuatu has already in place the institutional structure for implementation of enhanced NDC, the National Advisory Board (NAB), is the supreme policy making and advisory body for all disaster. risk reduction and climate change programs, projects,
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3.3 Key GHG Emission Sectors
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Electricity Generation
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Figure 23 Vanuatu's GHG emissions: sectors and subsectors (excluding removals)
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The energy industries or electricity generation subsector contributes about 25 percent of total CO2 emissions from the energy sector and about 5 percent of Vanuatu's total CO2 emissions. The country's electricity system can be classified into two types: grid-connected and off-grid. Offgrid systems can be broken down further into mini-micro grids and standalone electricity generation systems (both renewable and fossil fuel-based).
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Figure 22 Vanuatu's Climate Change-Organizational Structure
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Vanuatu's key GHG emission sources can be classified into
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3.3.1 Energy and its Sub-Sectors
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MITIGATION ACTIONS AND THEIR EFFECTS
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Figure 26: Vanuatu's energy generation mix 2011-2019 (KW)
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Figure 24 Overview of Vanuatu's Electricity Generation
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Figure 25 Vanuatu's existing installed capacities 2019 (kW)
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these fluctuations and especially the drop in the share
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The government also developed the NERM 2016-2030 to improve electricity access and affordability and, simultaneously, reduce GHG emissions. The various plans under the NERM have already been implemented and others are at various stages of planning and implementation. As of 2019, total grid-connected electricity generation capacity had reached 32.4 MW with total annual electricity generation of 80.5 GWh. Figure 12 illustrates thermal and renewable generation over the period 2011-2019
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Diesel-based generation is the main source of electricity, with total installed capacity of about 25.2MW (78 percent), followed by wind at 3.4 MW (10 percent), solar at 2.51 MW (8 percent) and hydro at 1.232 MW (4 percent). Diesel-based electricity generators are the major source of GHG emissions. Further, generation efficiency of the diesel generation plants is also an important aspect of higher diesel consumption in the energy sector. The Gov has identified GHG emissions from electricity generation as key to reducing overall GHG emission and an important feature in achieving energy security and provide affordable energy.
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Two electricity utilities - Vanuatu Utilities and Infrastructure Limited (VUI) for Luganville and UNELCO Engie (UNELCO) for Efate Island - operate grid-connected electricity. Vanuatu's Utilities Regulatory Authority (URA) regulates the country's electricity sector.
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Figure 29 Manufacturing industries and construction/GHG emissions (Gg CD2eq) baseline scenario
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Figure 27 Share of type of renewable energy in total RE generation 2011-2019 (%)
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The manufacturing sector in Vanuatu is primarily related to fish processing, copra and various coconut products as well as growing beef industry. The primary manufacturing industries includes:
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has shown un-even distribution of fuel consumption and
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Manufacturing value added, at around 4% of GDP in 2015; however, Vanuatu has untapped potential to move up the industrial value chain. Organic beef from Vanuatu is wellknown throughout the Pacific and exported as far as Japan and Norway, wood processing and coffee industry have good potential and under-exploited as of now.
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The GHG emissions scenario for Vanuatu's energy industry (electricity generation subsector) based on historical emissions, with projections for the period 2010-2030 made using the statistical model is shown in the below figure. The emissions are estimated to rise steadily and reach around 54Gg CO2 eq by 2030.
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Figure 28 Energy industry/GHG emissions (Gg CO2eq) baseline scenario
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The construction sub-sector in Vanuatu has also seen negative growth during the inventory years. The construction activity is being driven by private-sector retail, residential and a number of donor-funded government construction projects mostly on the island of Efate, particularly in Port Vila. The slow construction activity and scrapping of some key projects hampered the growth.
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The manufacturing industries and construction sub-sector
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respective overall GHG emission, this is largely due to
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Vanuatu has a small light-industry sector mainly catering to the local market. The Manufacturing, Industry and Construction sub-sector comprises the manufacturing, construction, quarry, wholesale and retail sectors, although currently making a minor contribution to Vanuatu GDP
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of both affects the overall performance of the sub-sector.
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MITIGATION ACTIONS AND THEIR EFFECTS
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• Forestry Industry • Fisheries Industry
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The number of vehicles in Vanuatu will likely increase in the future due to increased economic activity, GDP, per capita
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Although Vanuatu's road network is limited, the number of vehicles is growing rapidly. Vehicle registrations in Vanuatu grew by 6.2 percent/year between 2007-2016. This growth is expected to continue as road infrastructure, urbanization and incomes continue to grow. The growth in the number of new registered vehicles is particularly high for buses, cars and motor bikes, which grew at annual rates of 9.66 percent, 4.77 percent and 1.62 percent, respectively, between 2007-2016.
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on production facilities given low supply of raw materials
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pick-ups and trucks. Vanuatu has a limited road network (approximately 3,000 km) in rural and urban areas (sealed, gravel and earth) that are used as feeder and arterial roads and are managed by the PWD. However actual road network length is not known as the islands also include many local bush roads that the PWD does not maintain.
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As figure below shows, within the transport subsector, road transport's 83 percent share of total fuel consumption and GHG emissions is highest, followed by domestic aviation (11 percent) and domestic water-borne navigation (6 percent).
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Transportation is a vital sector that has contributed enormously to achieving Vanuatu's development objectives. It will continue to serve as a driver for economic growth and development. Vanuatu's transport sector has seen significant growth in the past few years, but has become the energy sector's largest GHG emitter and fossil fuel consumer. It includes inland road transportation, domestic aviation and marine transportation. Vanuatu has no rail network and, considering its geographical limitations, is unlikely to initiate a rail network in the future. The transport subsector accounts for over half of Vanuatu's domestic petroleum demand (excluding bunkering, international aviation and international maritime).
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thanks to development assistance and programmes.
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d as it contributes approximately 4-5 percent of total
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Figure 30 Transport sector fuel consumption (2010-2015)
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Road Transportation (83%) Domestic Aviation (11%)
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income and overall transport infrastructure. The estimated cumulative new vehicles will reach over 25,000 in 2025 and over 32,000 by year 2030, compared to just around 5,000 in 2010. Diesel and gasoline (petrol) consumption are likely to increase by 227 percent and 147 percent, respectively, compared to 2010. In addition, overall GHG emissions from the transport sector are estimated to reach 87.81 Gg CO2e in 2025 and 98.60 Gg CO2e in 2030.
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Aviation is critical to Vanuatu's economy, providing essential transport links for tourism, trade, and disaster response and recovery. Vanuatu has three international airports: Bauerfield Airport-Port Vila (Efate); Pekoa Airport-Luganville (Espirito Santo); and White Grass Airport-Whitesands (Tanna) along with other 26 outer Island airports and airstrips. The aviation sector is still nascent and has yet to achieve its potential, due primarily to economical and geographical reasons.
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Commercial, Institutional and Residential Sub-sectors
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demand. Further, management and technical expertise
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Other subsectors under the energy sector include direct fuel consumption, primarily in commercial, institutional, residential and any other uncategorized and unorganized sectors or for any other purposes. This includes hotels, tourism bungalows, guest houses, restaurants, retail and shopping complexes. The other subsectors under the energy sector contribute around 0.98 percent of total GHG emissions and consume about 2.5 percent of total fossil fuel (mainly kerosene, LPG, diesel and petrol) imported into Vanuatu. This subsector is the leading consumer of LPG imported into Vanuatu, primarily for commercial and domestic cooking; annual domestic demand for LPG totals approximately 3 million litres. Other fuels (diesel, petrol and kerosene) are used primarily for lighting and electricity generation in off-grid areas, and are used on a limited basis in grid-connected areas due to reliability and availability constraints.
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tial GHG emissions from Vanuatu's transport subsector totalled 52.089 Gg CO2e in 2010 and had increased 38 percent by 2015 (72.135 Gg CO2e), for a compound annual growth rate of about 6 percent. Of the three main modes of transportation - road, aviation and marine), road/land rito transport consumes just over 50 percent of all petroleum ng products imported for domestic consumption. and eld
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Figure 32 Transport subsector/GHG emissions (Gg CO2eq)
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reasons, they must often migrate to routes with sufficient
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Vanuatu has two international wharves in Port Vila and Espiritu Santo and public wharves and jetties for inter-island operations. Three main passenger vessels provide less expensive transport among three of the major populated islands: (1) Vanuatu Ferry, which also carries cargo, travels between Port Vila, Santo, Malekula and Tanna; (2) Vanuatu Cargo, the Vanuatu Ferry's sister ship; and (3) The Big Sista. These ships also continue through and service the more populated islands. Some of the smaller cargo vessels can carry up to five passengers but are not designed for passenger transport.
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and transportation. The effectiveness and efficiency of water
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As an island nation, Vanuatu depends highly on water-borne
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passenger and cargo volumes to maintain commercial
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navigation for domestic and international trade, tourism,
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Diesel oil and gasoline/petrol are the main fuels used for water-borne navigation. Most inter-island shipping services are privately owned and operated (mainly Vanuatu Ferry and Big Sista), generally by single ship owners. Shipping operators set fees and charges to carry passengers and
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MITIGATION ACTIONS AND THEIR EFFECTS
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Livestock
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Agriculture
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Vanuatu's subtropical environment is well suited to and provides a conducive environment for cattle farming. This has resulted in significant growth in the number of cattle since 1994 and, thus, a significant source of GHG emissions.
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The Ministry of Agriculture Livestock Fisheries Forests and Bio Security (MALFFB) is pursuing initiatives to increase the country's livestock population, considering beef an important export commodity, source of revenue and key food source.
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contributor of methane emissions and the leading contributor of GHG emissions within the AFOLU sector. On the other hand, the forestry sector is a net carbon sink; as a result, Vanuatu's net carbon emissions are negative. The AFOLU sector assessment and potential mitigation actions include:
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Figure 33 GHG emissions from other subsectors (Gg CO2ea)
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Vanuatu's agriculture (livestock) subsector is the major
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Livestock are an integral part of the country's farming systems and essential to the livelihoods of a vast majority of Vanuatuan's. The sector plays an important role in local cultures and the country's economic development. The livestock subsector is the major contributor of methane emissions and the leading contributor of GHG emissions. The main livestock animals include cattle, poultry (chickens) and pigs. Vanuatu is known as the Pacific's largest and best beef producer and exporter. Figure 30 presents the category-wise livestock population.
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Mostly rural (and some urban) households use biomass as their primary source of energy, mainly for cooking, with approximately 85 percent of households using wood and coconut shells. However, little accurate information is available on biomass produced and utilized in Vanuatu.
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Total GHG emissions from the other subsectors total 5.882 Gg CO2e and 5.227 Gg CO2e for 2010 and 2015, respectively. Figure below presents historical GHG emissions from manufacturing industries and the construction subsector.
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Livestock enteric fermentation (due to the digestive system of ruminant animals like cattle, buffalo, sheep and goats) and the manure management system are the primary sources of GHG emissions. Cattle account for the majority of methane emissions in this category.
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