In this January 2022, three new legal documents have been issued regarding the reduction of greenhouse gas emissions and protection of the ozone layer, including:

·         Decree 6 of the Government dated and effective from 7 January 2022 (Decree 6/2022);

·         Circular 1 of the Ministry of Natural Resources and Environment (MONRE) dated and effective from 7 January 2022 regarding response to climate change (Circular 1/2022); and

·         Decision 1 of Prime Minister regarding issuance of list of greenhouse gas emitting sectors and establishments subject to greenhouse gas inventory dated and effective from 18 January 2022 (Decision 1/2022).

The legislation seems to a step to implement Vietnam’s commitment to achieve net-zero carbon emissions by 2050 in the COP26.

First, according to Decision 1/2022, there are 21 sectors and 1912 establishments (Target Establishments) subject to greenhouse gas inventory. This list will be reviewed every two years.

Second, these Target Establishments must reduce the greenhouse gas emissions in the following schedule:

·         Providing information and data for greenhouse gas inventory, establishing and conducting methods to reduce greenhouse gas emissions which are suitable with conditions of such establishment; and

·         For the period from 2026 to 2030, conducting greenhouse gas inventory, establishing and conducting plans for reductions of greenhouse gas emissions according to quotas provided by MONRE; being allowed to exchange, sell and purchase greenhouse gas emission quotas and carbon credits on carbon credit exchange.

Moreover, such Target Establishments must, among other

·         comply with regulations on measurement, report, appraisal on reduction of greenhouse gas emissions;

·         starting from 2027, send the report on the reduction of greenhouse gas emission of the previous year to the relevant authority before 31 March every year;

·         starting from 2023 and every two years, provide the relevant authority with data on the operation and relevant information in the previous year for purpose of greenhouse gas inventory of such establishment before 31 March;

·         starting from 2023 and every two years, conduct greenhouse gas inventory, prepare a report on greenhouse gas inventory and send such report to the provincial people’s committee for the appraisal; and

·         starting from 2025 and every two years, complete the report on the result of greenhouse gas inventory and send such report to MONRE before 1 December of the reporting period.

Third, the Target Establishments is allowed to participate in the domestic carbon market. The Target Establishment can apply at MONRE for a certificate on carbon credits and greenhouse gas emission quotas for trading on the domestic carbon market. The MONRE will issue the certificate within 15 working days.

Fourth, Decree 6/2022 specifies eight controlled ozone-depleting substances and one greenhouse effect-causing substance, as well as provides a roadmap for managing and excluding such controlled substances. Details of controlled substances are provided in Appendix III of Circular 1/2022.

·         Organizations must register their use of controlled substances with MONRE before 31 December 2022 if they import, export, or manufacture the controlled substances; manufacture, import, or own equipment or products having or produced from controlled substances; or collect, recycle, reuse, and handle controlled substances. Within 10 working days from the receipt of a full and valid dossier, MONRE will publish information of the organization completing the registration for use of the controlled substance on the website of state authority on climate change. However, organizations who are allocated quotas for import of HCFC substances before 7 January 2022 and who have registered quotas for import of HCFC for 2022, are not required to register the use of controlled substances as discussed above.

·         Organizations that import, export, or manufacture the controlled substances will be allocated quotas for manufacturing and importing the controlled substances. Organizations can request to amend or supplement quotas by sending a written request to MONRE before 10 July every year. MONRE will decide and issue a decision on adjustment and supplement of quotas for manufacturing and importing the controlled substances within 30 working days. However, such decision of MONRE can be canceled if there is any false information regarding the use of controlled substances by organizations or illegal transfer or use of decision on allocation, adjustment, and supplement of quotas for manufacturing and importing the controlled substances.

This post is written by Le Minh Thuy and edited by Nguyen Quang Vu.