What is the source for the fund of the green house gas (GHG) emissions quotas allocation in Vietnam?

What is the source for the fund of the green house gas (GHG) emissions quotas allocation in Vietnam?

Pursuant to Article 12 of the Decree 06/2022/ND-CP stipulating GHG emissions quotas allocation in Vietnam as follows: 

1. Based on the goals, roadmap for GHG emissions mitigation prescribed in Article 7 hereof and the GHG inventory results in the latest inventory period of the facilities specified in Clause 1 Article 5 hereof, the Ministry of Natural Resource and Environment shall propose the Prime Minister promulgating the total GHG emissions quotas and the proportions of quotas for reserve and quotas for auction for the period from 2026 to 2030 and every year.

2. Based on the total GHG emission quotas prescribed in Clause 1 hereof and the GHG inventory results in the latest inventory period and implementation of the GHG emissions mitigation under facilities, the Ministry of Natural Resource and Environment shall take charge and cooperate with relevant ministries in formulating and promulgating GHG emission factor of each product applicable to the facilities specified in Clause 1 Article 5 hereof in the period from 2026 to 2030 and in every year for manufacturing or business facilities and organizations of the GHG emissions quotas allocation.

3. Funding for the GHG allocation specified in Clause 2 hereof shall be allocated from state budget resource under the state budget management division.

What are included in the plan for mitigation of GHG emissions in Vietnam?

Pursuant to Article 13 of the Decree 06/2022/ND-CP stipulating plan for mitigation of GHG emissions in Vietnam as follows: 

1. Requirements for mitigation of GHG emissions

a) Plan for industry-level GHG emissions mitigation shall be formulated based on strategies, planning, plans of the industry; GHG inventory results and BAU scenarios in the planning period;

b) Plans for GHG emissions mitigation under facilities shall be formulated based on properties, operation areas, capacities and available technological and manufacturing and business plans of the facilities; GHG inventory results and estimate the GHG emissions rates in the plan period;

c) Measures for the GHG emissions mitigation chosen shall be specified in the NDC or suitable for technological and financial conditions, available, measurable, reportable and verifiable;

d) Methods of determining decrease in GHGs of the GHG emissions measures shall be formulated according to guidelines on the methods of GHG emissions mitigation measurement certified by UNFCCC or promulgated by competent authorities;

dd) There must be a plan for monitoring and reporting results of the GHG emissions mitigation measures according to the regulations on measurement, reporting and verification.

2. The ministries prescribed in Clause 1 Article 5 hereof shall formulate and approve GHG emissions mitigation plans of their industries until 2030with phased implementation schedule until 2025 and submit them to the Ministry of Natural Resource and Environment before January 31 from 2023;

3. An industry-level plan for GHG emissions mitigation formulated according to Form No. 01 of Appendix IV issued together with this Decree includes:

a) A GHG inventory result of their industries of the latest year;

b) A BAU scenario and estimated potential GHG emissions decrease ;

c) An objective of GHG emissions mitigation of each year from 2023 to the end of 2025 and from 2026 to the end of 2030 according to the objective of GHG emissions mitigation of the NDC;

d) Chosen Measures for GHG emissions mitigation that are suitable for actual situation, technological situation, available resources, strategic environmental assessments for development strategies of national sectors and fields, national sector plans and technological and specialized plans with great impacts on the environment on the list prescribed by the Government;

dd) Plan for monitoring implementation of the GHG emissions mitigation plan.

4. The facilities prescribed in Clause 1 Article 5 hereof shall:

a) Formulate and carry out GHG emissions mitigation measures of the facilities in the period from 2023 to 2025 in a manner that is suitable for manufacture and business conditions of the facilities;

b) Formulate and approve GHG emissions mitigation plans in the period from 2026 to 2030, annually adjust and update (if any) and submit them to the Ministry of Natural Resource and Environment, relevant ministries specified in Clause 2 Article 5 hereof and relevant specialized agencies under the provincial People’s Committees before December 31 from 2025.

5. Internal plans for GHG emissions mitigation shall be formulated according to Form No. 02 of Appendix IV issued together with this Decree.

a) GHG inventory results of facilities of the latest year;

b) Estimated GHG emissions in the planning period without application of technology and measures for GHG emissions mitigation;

c) Objective of GHG emissions mitigation of each year in the period from 2026 to 2030;

d) Chosen measures for GHG emissions mitigation that are suitable for actual situation, technological situation, and available resources of the facilities;

dd) Plan for monitoring implementation of the GHG emissions mitigation plan.

6. Revisions to plan for GHG emissions mitigation

a) The ministries specified in Clause 2 Article 5 hereof shall revise their GHG emissions mitigation plans when there are changes prescribed in Clause 1 of this Article or factors and risks of major negative impact on socio-economic development strategies of sectors and localities and requested adjustment by ministers and heads of ministerial-level agencies;b) The facilities specified in Clause 1 Article 5 hereof shall revise their GHG emissions mitigation plans when there are changes specified in Point b Clause 1 hereof or at the request of their owners . 7. The People’s Committee of province has responsibility to provide figures for the ministries prescribed in Clause 3 Article 7 of Decree serving formulation of ministerial plans for GHG emissions mitigation prescribed in Clauses 2 and 3hereof, participating in ministerial-level GHG emissions mitigation plans and monitoring the implementation by the facilities prescribed in Clause 1 Article 5 hereof under their management.

Best regards!