Major emitters proactively enhance greenhouse gas inventory capacity

(VEN) - According to Decision No. 13/QĐ-TTg, 2,166 facilities across six sectors are required to conduct a greenhouse gas (GHG) inventory report for 2024 and submit it by March 31, 2025.

Enterprises proactively enhance capacity

In 2024, to support enterprises in fulfilling their mandatory GHG inventory obligations under Decree No. 06/2022/NĐ-CP on mitigation of GHG emissions and protection of ozone layer, training courses on GHG inventory and the use of the online GHG inventory reporting system were funded by the Japan International Cooperation Agency (JICA) and organized under the supervision of the Department of Climate Change (DCC) of the Ministry of Agriculture and Environment. These training courses focused on the cement, steel, and transportation sectors.

Chemical enterprises participate in training on greenhouse gas inventory reporting
Chemical enterprises participate in training on greenhouse gas inventory reporting

Following the success of these trainings, in March 2025, Energy and Environmental Consultancy JSC (VNEEC), in collaboration with Vietnam PoA Carbon Management JSC and Vietnam Technology Solutions JSC, organized two training courses on GHG inventory using the online GHG inventory reporting system for the thermal power and chemical sectors. The event attracted 65 participants from the chemical sector and 69 participants from the thermal power sector attending in person, along with more than 200 online participants.

At the training courses, participants were not only introduced to and given hands-on practice with the online facility-level GHG inventory reporting system but also had the opportunities to discuss technical issues and practical difficulties encountered when conducting GHG inventories. This helped enterprises enhance their capacity and take a more proactive approach in preparing GHG inventory reports as well as implementing GHG emission reductions.

Meanwhile, under the framework of the Technical Assistance (TA) “Emission Trading System (ETS) Piloting and Simulation in Vietnam”, provided by the Southeast Asia Energy Transition Partnership (ETP) of the United Nations Office for Project Services (UNOPS) to support for the DCC, six training courses on ETS and the carbon market were successfully organized for nearly 700 participants from ministries, agencies, and major emitters in Vietnam.

Ms. Dang Hong Hanh, Co-Founder and Managing Director of VNEEC
Ms. Dang Hong Hanh, Co-Founder and Managing Director of VNEEC

Ms. Dang Hong Hanh, Co-Founder and Managing Director of VNEEC – the company leading the consortium to organize the trainings, stated: "The TA contributed directly to increasing public awareness and capacity related to Vietnam’s carbon market and climate policies. The assessments of participants, ETP and DCC confirmed that these six ETS training and simulation courses conducted in 2024 have been highly successful in building the capacity of stakeholders who will directly or indirectly participate in the pilot phase of the ETS including policymakers, major emitters, research institutes, financial organizations, and media agencies."

Ms. Hanh emphasized that these training courses were only an ice-break event, providing fundamental but general knowledge, particularly targeted to major emitters. Since ETS and the carbon market are the new concepts for most enterprises, policy makers, and other stakeholders in Vietnam, continuous knowledge updates are essential. With nearly 3,000 major emitters and the pilot carbon trading platform expected to be operational in 2025, the demand for professional trainings and improving capacity in this field is expected to grow significantly. Therefore, regular training courses as well as programs specialized on technical aspects need to be organized regularly in the future.

The Scheme on the Establishment and Development of a Carbon Market in Vietnam, approved under Decision No. 232/QD-TTg of the Prime Minister, includes a key task namely "raising awareness and enhancing capacity." This task is assigned to the Ministry of Agriculture and Environment, in collaboration with relevant ministries, agencies, and the Vietnam Chamber of Commerce and Industry (VCCI).

“As far as I know, alongside the commitment and intended support from international donors in assisting the Vietnamese government in organizing and implementing awareness and capacity-building training programs on ETS and the carbon market, Vietnamese enterprises and corporations have also been already proactive in conducting internal training on these new topics”- Ms. Hanh stated.

Ms. Hanh cited examples of VNEEC being invited to conduct specialized training on the carbon market for BIDV and on greenhouse gas (GHG) inventories for corporations such as Petrolimex.

“This is a very positive signal, demonstrating the initiatives of Vietnamese enterprises in preparing their capacity to be ready to participate in and comply with the new market mechanism”- Ms. Hanh affirmed. She expressed confidently that, in the coming period, various training and capacity-building initiatives, funded by the government, international organizations, and the enterprises themselves, will be implemented to support enterprises entering the carbon market. The training programs are expected to be more diverse and tailored to the specific needs of different groups of participants.

Criteria for allocating emission allowances

According to Decision No. 232, the carbon trading platform will be piloted from June 2025 until the end of 2028 before fully operating in 2029.

With only three months remaining before the pilot phase begins, one of the key concerns for major emitters is the criteria for allocating emission allowances.

According to Ms. Hanh, as stipulated in the current draft version of amendment of the Decree No. 06/2022/ND-CP, allowances allocated for ETS participants will be determined based on historical emissions, requiring the following key data and parameters:

  • GHG inventory data from facilities participating in the ETS, covering at least three consecutive years;
  • Production and business plans of the facilities during the compliance period to forecast GHG emissions;
  • Potential for emission reductions within each facility’s production and business operations to assess the feasibility of allocated allowances;
  • Technical and financial capacity of the facility to implement emission reduction measures according to the allowances allocated.

Thus, in the near future, GHG inventory reports submitted by emitting facilities regulated under Decision 13/2024/QD-TTg, will serve as a critical data source for the initial development of an emission database for allocating allowances.

The market operation mechanisms are currently being developed by two key ministries: the Ministry of Finance and the Ministry of Agriculture & Environment, as assigned under the Scheme on the Establishment and Development of a Carbon Market in Vietnam.

BOX: We are now awaiting the amendment and issuance of amended Decree No. 06/2022/ND-CP, along with other regulatory documents, to facilitate the pilot phase of and operate for the ETS and the carbon market in Vietnam.

Thu Huong

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