Vietnam’s Decree on GHG emissions reductions and ozone layer protection (“Decree 06”) takes effect on January 7th 2022, providing a detailed roadmap on emissions control, in line with the revised Law on Environmental Protection (LEP). The Decree aims to achieve Vietnam’s net-zero vision by 2050. With specific guidelines for GHG emissions reduction measures across all levels and regulations for activities involving the usage of ozone depleting substances, the document will act as the corner-stone for Vietnam’s actions towards climate response.
In the Decree, the government of Vietnam has outlined a detailed roadmap to 2030 and measurable objectives focusing on the development of greenhouse gas (GHG) emissions reduction plans implemented by ministries, sectors and establishments as specified in Clause 1 of the Article. The provided timeline includes deadlines for the submission of annual GHG inventory reports and reduction plan reports. From 2024 onwards, relevant ministries must submit their annual GHG inventory and reduction plan report while this process is only mandatory for establishments from 2027 onwards. The document also specifies on the development of an efficient Monitoring, Reporting and Verification System, with MONRE as the leading agency responsible for the annual synthesis of nationwide GHG inventory reports and evaluation of consolidated reduction plans.
One significant chapter in the Decree is the scheme for the development of a domestic carbon market. Policies for carbon credit exchange will be established in the period 2022-2027 to prepare for the piloting of the carbon market in 2025. This requires the completion of total greenhouse gas emissions quotas which is now being prepared by MONRE and to be submitted to the Prime Minister for promulgation for the period of 2026-2030 and annually afterwards. By 2028, Vietnam will enter a trading scheme where establishments can trade and auction carbon credits to offset GHGes in accordance with the regulations specified in the Document. The Ministry of Finance will take the lead for the carbon credit exchange and financial management mechanism while MONRE shall coordinate with relevant ministries to monitor the operation of the market. This is Vietnam´s very first detailed plan to establish a domestic carbon market and participate in the international carbon market which will open many opportunities for sustainable businesses and measures to reduce greenhouse gas emissions.
Considering ozone layer protection, the document aims to prohibit the imports and exports of HCFC substances – one of main ozone depleting chemicals – by 2040, while the controlled HFCs will be limited to 20% of baseline consumption level by 2045. All organizations involved in the production, export, import, and possession of controlled substances must register and report activities to MONRE for evaluation and will be allocated a quota to align with the national proposed targets.
Overall, the Decree has provided a specific framework to reduce GHGs and ozone depleting substances until 2030, with a vision to 2050. The regulations, if implemented successfully, can help Vietnam achieving and even surpassing its current NDC target and advance the country’s climate commitments made at COP26.