Vietnam enacts new management regulations on ozone depleting substances

On January 7, 2022, the Government of Vietnam enacted Decree No. 06/2022/ND-CP Providing Regulations on Reduction of Greenhouse Gas Emissions and Protection of the Ozone Layer (hereinafter referred to as the Decree). Article 22 to 29 of the Decree provide detailed provisions for Article 92 of the Law on Environmental Protection 2020, “protection of the ozone layer.” On the same day, the Ministry of Natural Resources and Environment (MONRE) also enacted Circular No. 01/2022/TT-BTNMT providing Detailed Regulations on Implementation of Climate Change Response in the Law on Environmental Protection (hereinafter referred to as the Circular). Article 15 to 18 of the Circular provide a list of controlled substances and guidance for their management.

The original text of the Decree and the Circular can be downloaded from the following URL.

Decree No. 06/2022/ND-CP
https://monre.gov.vn/VanBan/Lists/VanBanHanhChinh/Attachments/282/06-nd.signed.pdf

Circular No. 01/2022/TT-BTNMT
https://monre.gov.vn/VanBan/Lists/VanBanHanhChinh/Attachments/281/01-2022-TT-BTNMT.rar

List of controlled substances

The following are the substances to be controlled under the Decree and the Circular.

Among the above substances, the import and export of HCFCs will be banned from January 1, 2040, based on the roadmap for their control and elimination. As for bromomethane, import will be allowed only for the purpose of sterilization and quarantine of exports. In addition, the following activities will be prohibited according to Article 11 of the Environmental Protection Law.

• • Manufacture, import, temporary import, and re-export of bromochloromethane, CTC, CFC, halon, HBFC, trichloroethane, and HCFC-141b
  • Manufacture, import, temporary import, and re-export of products and equipment manufactured using or containing bromochloromethane, CTC, CFC, halon, HBFC, trichloroethane, and HCFC-141b
  • Manufacture, import, and use of products and equipment manufactured using or containing banned controlled substances
  • Manufacture, import, and use of controlled substances prohibited by the MONRE.

The details of the list of controlled substances regarding ozone depleting substances and greenhouse gas substances are specified in Annex III of Circular No. 01/2022/TT-BTNMT as follows.

Registration of the use of controlled substances and reporting

The following businesses must register for the manufacture, import, export, collection, recycling, reuse, and disposal of controlled substances, and manufacture, import, and possession of products and equipment manufactured using or containing controlled substances (hereinafter referred to as use of controlled substances).

• • Businesses that manufacture controlled substances
  • Businesses that import or export controlled substances
  • Businesses that manufacture or import products or equipment manufactured using or containing controlled substances
  • Businesses that own the following equipment that contains controlled substances
  • Air conditioners with a total cooling capacity exceeding 586 kW (2,000,000 BTU/h), including one or more air conditioners with a standard cooling capacity exceeding 26.5 kW (90,000 BTU/h)
  • Industrial refrigeration equipment with an electrical capacity exceeding 40 kW
  • Businesses that provide collection, recycling, reuse, and disposal services for controlled substances

The above businesses that engage in the use of controlled substances (covered businesses) must register their use of controlled substances with the MONRE by December 31, 2022. The covered businesses are also required to report their use of controlled substances by January 15 of each year. The registration and reporting will also be mandatory for businesses established after December 31, 2022.

Allocation, adjustment, and addition of quotas for the manufacture and import of controlled substances

The MONRE annually allocates quotas for the manufacture and import of controlled substances to businesses that engage in the use of controlled substances. If the businesses wish to adjust or add to the allocated quota, they may apply to the MONRE.

Collection, recycle, reuse, and disposal of controlled substances

Businesses that manufacture or import products and equipment manufactured using or containing controlled substances must comply with the following provisions for the collection, recycle, reuse, and disposal of controlled substances.

• Collect the controlled substances that are not included in products and equipment from January 1, 2024.
• Recycle and reuse the collected controlled substances (recommended).
• Dispose of the controlled substances in accordance with hazardous waste management regulations if they cannot be recycled or reused.
• Report on the use of controlled substances annually.

Transitional regulations

Businesses that have been allocated import quotas for HCFCs prior to the effective date of the Decree will be exempted from registering the uses of HCFCs for 2022.