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 5 to 15 of the Decree provide detailed provisions for Article 91 of the Law on Environmental Protection 2020, “reduction of greenhouse gas (GHG) emissions.” 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). Articles 9 to 14 of the Circular provide details on the examination of GHG inspections and reporting.
The original text of the Decree and the Circular can be downloaded from the following URL.
Decree No. 06/2022/ND-CP
Circular No. 01/2022/TT-BTNMT
Scope of GHG Inspections
Facilities that meet the following conditions or emit GHG equivalent to or more than 3,000 tons of carbon dioxide (CO2) must conduct GHG inspections.
- Coal-fired power plants and manufacturing establishments with an annual energy consumption of 1000 TOE (tons of oil equivalent) or more
- Road transport operators with an annual energy consumption of 1000 TOE or more
- Shopping malls, etc. with an annual energy consumption of 1000 TOE or more
- Solid waste treatment facilities with an annual processing capacity of 65,000 tons or more
Roadmap for implementation of GHG inspections and reductions
Facilities subject to GHG inspections must implement GHG inspections and reductions based on the following roadmap.
Submit information and data to the government to conduct GHG inspections of facilities and develop and implement GHG reduction measures suitable for the conditions of the facilities.
|Collection of information for GHG inspections
Starting in 2023 and every two years thereafter, information and data on the previous year’s activities shall be provided by March 31 in accordance with the guidance from the competent ministries for the purpose of conducting GHG inspections.
|Each facility shall gather information for GHG inspections in accordance with the guidance from the competent ministries.
|Reporting of GHG inspections
Starting in 2024 and every two years thereafter, GHG inspections of facilities shall be conducted, and GHG inspection reports shall be prepared on a regular basis and submitted to the local People’s Committee by March 31 of the following year. The first deadline will be March 31, 2025.
From 2025, another report shall be completed and submitted to the MONRE by December 1 of the year in which the above GHG inspection report is submitted. The first deadline will be December 1, 2025.
|The GHG inspection report shall be prepared in accordance with Annex II Form 06 of the Decree.
|GHG reduction measures
GHG reduction measures for 2023-2025 suitable for the conditions of the facilities shall be developed.
|Each facility shall measure the implementation results of GHG reduction measures in accordance with the guidance from the competent ministries.
|From 2026 to 2030:
Develop and implement a GHG reduction plan in accordance with GHG quotas allocated by the MONRE based on GHG inspections. Trading and exchange of GHG quotas and carbon credits will be allowed.
|GHG reduction plan
By December 31, 2025, a GHG reduction plan for 2026-2030 shall be prepared and submitted to the MONRE, competent ministries, and local People’s Committee. If there are any changes to the plan, it can be updated.
|The GHG reduction plan shall be prepared in accordance with Annex IV Form 02 of the Decree.
|Reporting of GHG reduction results
Starting in 2027 and every year thereafter, a report on the GHG reduction of facilities in the previous year shall be prepared and submitted to the MONRE, competent ministries, and local People’s Committee by March 31.
|The GHG reduction results report shall be prepared in accordance with Annex III Form 02 of the Decree.
|Participation in the carbon market
The carbon credit market will be operated on a pilot basis from 2025. The carbon credit market will then be formally launched in 2028, enabling the bidding, transfer, borrowing, and return of GHG emission quotas as well as the use of carbon credits to offset GHG emissions.
On January 18, 2022, the Prime Minister of the Vietnam issued the Prime Minister’s Decision No. 01/2022/QD-TTg on the List of Greenhouse Gas Emitting Facilities that Must Conduct Greenhouse Gas Inspections. See more details in the following:
Vietnam lists facilities mandated to conduct GHG inspections