Decision on piloting the allocation of GHG emission allocations for 2025 and 2026 in Vietnam

On February 27, 2026, the Ministry of Agriculture and Environment issued Decision No. 699/QD-BNNMT on piloting the allocation of GHG emission for 2025 and 2026. The Decision takes effect from the date of signing. The list of 34 thermal power plants, 25 iron and steel production facilities, and 51 cement production facilities eligible for the pilot allocation of greenhouse gas emission allowances for 2025 and 2026 is attached to the Decision as an Appendix. This list of facilities includes the following information:

• Company Name
• Address
• Tax ID
• Legal Representative
• GHG Emission Allocation(2025, 2026)

Facilities eligible for the pilot allocation of GHG emission allocation are responsible for returning the allocated quotas as stipulated in Decree No. 06/2022/ND-CP regulating mitigation of GHG emissions and protection of ozone layer, adjusted and amended at Decree No. 119/2025/ND-CP.

EnviX Comment

The allocation of greenhouse gas (GHG) emission allocation imposes stricter requirements on enterprises to monitor and manage their emissions. Enterprises subject to GHG allocation will face both challenges and opportunities:

• Challenges:

• • Increased compliance costs: Costs associated with GHG inventory, reporting, and verification; development and operation of MRV (Monitoring, Reporting, and Verification) systems; and costs of purchasing emission allocation or carbon credits in case of shortage.
  • Higher capital expenditure for green transition: Investment in low-carbon technologies and cleaner production processes to reduce emission intensity.
  • Operational and management challenges: Difficulties in collecting and managing dispersed emissions data; cross-departmental coordination issues; lack of qualified personnel; and challenges in integrating carbon management into production and business operations.

• Opportunities

• • Driving green transformation: Encourages investment in low-emission technologies, energy efficiency, and process optimization.
  • Improved data transparency and standardization: Enhances environmental data systems and corporate governance practices.
  • New financial opportunities: Enables access to green finance and participation in carbon markets through trading of emission quotas and carbon credits.
  • Enhanced competitiveness and supply chain integration: Enterprises with robust MRV systems and carbon strategy are better positioned to meet international green standards and integrate into global supply chains.

Recommendations for Enterprises

To ensure compliance and optimize benefits, enterprises should proactively:

• Develop and strengthen MRV systems for GHG emissions at the facility level
• Formulate emission reduction strategies and carbon cost management plans (including trading of quotas and carbon credits)
• Actively participate in carbon markets to optimize costs and generate additional revenue streams