Vietnam promulgates new Circular on GHG inventory preparation in industry and trade sectors

On December 27, 2023, Vietnam promulgated Circular No. 38/2023/TT-BCT on Measurement, Reporting and Verification of Greenhouse Gas Inventory and Greenhouse Gas Emission Reduction in the Industry and Trade Sectors (hereinafter “the Circular”), which will enter into force on February 11, 2024. The Circular was formulated as one of the subordinate regulations of Decree No. 06/2022/ND-CP and specifically provides the calculation method of greenhouse gas (GHG) emissions for manufacturing plants and other facilities. The articles directly relevant to plant operation are Articles 15 to 24 (preparation of GHG inventory) and 29 to 32 (preparation of GHG emission reduction plan), Annex 2 (preparation of GHG inventory), and Annex 3 (measurement, reporting and verification of GHG reductions).

GHG inventory

The GHG inventory at the plant facility level is divided into two categories: direct and indirect emission sources. The table below shows details of the emission sources in each category.

Category	Details of emission sources
Direct emission sources	Emissions from stationary sources, including fuel combustion activities in stationary equipment such as boilers, furnaces, burners, turbines, stoves, incinerators, etc. Emissions from mobile sources, including fuel combustion activities in transport vehicles. Emissions from industrial processes, including emissions from physical or chemical processes that generate GHGs in the production lines of facilities. Emissions from diffusion, from machinery and equipment, or from exploration or processing of minerals, etc. GHG emissions from refrigerants and GHG emissions from processes and equipment used in the production and sales of refrigerants. Emissions from waste collection, management, and treatment.
Indirect emission sources	Emissions from the consumption of electrical energy. Emissions from the consumption of steam energy.

Category

Details of emission sources

Direct emission sources

Emissions from stationary sources, including fuel combustion activities in stationary equipment such as boilers, furnaces, burners, turbines, stoves, incinerators, etc.
Emissions from mobile sources, including fuel combustion activities in transport vehicles.
Emissions from industrial processes, including emissions from physical or chemical processes that generate GHGs in the production lines of facilities.
Emissions from diffusion, from machinery and equipment, or from exploration or processing of minerals, etc.
GHG emissions from refrigerants and GHG emissions from processes and equipment used in the production and sales of refrigerants.
Emissions from waste collection, management, and treatment.

Indirect emission sources

Emissions from the consumption of electrical energy.
Emissions from the consumption of steam energy.

The Circular requires plants to collect data on each of the above emission sources and calculate their GHG emissions by multiplying each of the collected data by GHG emission factors and global warming potentials (GWPs, a factor used to convert non-CO₂ GHGs into CO₂ equivalents). With regard to GHG emission factors, plants may set their own factors or use the factors separately promulgated by the Ministry of Natural Resources and Environment. When preparing a GHG inventory report, Annex 2 of Decree No. 06/2022/ND-CP must be referred to. And the formulas for each of the above mentioned emission sources are prescribed in Appendix 2 of the Circular.

GHG emission reduction plan

When preparing a GHG emission reduction plan, it is necessary to first determine the reduction methods, estimate the amount of GHGs that can be reduced by each method, and then sum them up using Form 2 of Annex 4 of Decree No. 06/2022/ND-CP through all these processes.

In addition, the audit procedure for the implementation of GHG emission reduction plans and the confirmation documents to be used during the audit are specified in Section 2 of Annex 3 of the Circular, and the detailed verification procedure for GHG emission reduction is specified in Section 3 of the same Annex.

The Circular can be downloaded at:
https://moit.gov.vn/upload/2005517/fck/files/KiYm_ke_khi_nha_kinh_c9ff2.pdf

Vietnam promulgates new Circular on GHG inventory preparation in industry and trade sectors

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