Prepare Now for Vietnam’s Mandatory GHG Inventories since October 2024

In August, 2024, Vietnam’s Deputy Prime Minister signed Decision No. 13/2024/QD-TTg, which provides the list of sectors and facilities required to conduct greenhouse gas (GHG) inventories in Vietnam.

This shift signifies a major uplift in climate-related practices nationally. It strengthens Vietnam’s goal of achieving net-zero emissions and capping total emissions at 185 MtCO2e by 2050.

Sectors Required to Conduct Greenhouse Gas Inventory

2166 facilities are required to conduct GHG inventories. The new rule applies to facilities in several important sectors, including:

1. Energy: Energy production industry; Energy consumption in industry, commerce, services, and households; Coal mining; Oil and natural gas extraction.
2. Transportation: Energy consumption in transportation.
3. Construction: Energy consumption in the construction sector; Industrial processes in building materials production.
4. Industrial Processes: Chemical production; Metallurgy; Electronics industry; Use of substitute products for ozone-depleting substances; Production and use of other industrial products.
5. Agriculture, Forestry, and Land Use: Livestock farming; Forestry and land use change; Crop cultivation; Energy consumption in agriculture, forestry, and fisheries; Other emission sources in agriculture.
6. Waste: Solid waste landfills; Biological treatment of solid waste; Incineration and open burning of waste; Wastewater treatment and discharge.

When will it Take Effect?

Decision No. 13/2024/QD-TTg will take effect from October 1, 2024, replacing Decision No. 01/2022/QD-TTg. 

With less than two months remaining, businesses need to act quickly to comply with the new rules.

For facilities that do not comply with the new decision once it is in effect, the owners will be penalized according to Article 45 of Decree No. 45/2022/NĐ-CP, which stipulates administrative fines for violations of GHG emissions reduction regulations.

Key Notes for Companies

Regarding the deadlines for submitting GHG inventory reports, facilities should note to: 

• Conduct the GHG inventory at the facility level and;
• Prepare the GHG inventory report every two years starting from 2024, using Form 06 in Appendix II of Decree No. 06/2022/ND-CP
• Then, submit it to the provincial People’s Committee by March 31, 2025, for verification.

Businesses must promptly review and comprehend the necessary legal documents for conducting GHG inventories as directed by the relevant Ministries (Ministry of Industry and Trade, Ministry of Transport, Ministry of Construction, Ministry of Natural Resources and Environment).

Why This Matters

This mandate is not just a legal requirement; it is a step towards sustainable development. By managing your GHG emissions, your business will comply with the law and contribute to Vietnam’s environmental goals.

Understanding your emissions reports is also key to taking right action and aligning with global climate initiatives like Science-based Targets, RE100, HIGG FEM, GRI, and the GHG Protocol. This creates an opportunity for companies to lead in sustainability and gain a competitive advantage.

Prepare now to stay ahead

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