Introduction

Climate change poses one of the most significant global challenges of our time, threatening ecosystems, human health, and economies around the world. Central to understanding and combating climate change is the use of Greenhouse Gas (GHG) Inventories—a systematic way to measure the emission of gases that trap heat in the atmosphere, contributing to global warming (learn more about this topic here). For countries like Vietnam, which is particularly vulnerable to climate impacts such as rising sea levels and extreme weather, maintaining and improving the accuracy of these inventories is crucial.

In this article, we will explore how Vietnam compiles its GHG inventories and the policies that influence these inventories. By understanding these elements, the general public can better appreciate the complexities and necessities of environmental stewardship in today’s world.

Vietnam’s Climate Commitments

Vietnam’s commitment to combat climate change is reflected in its ambitious pledge to achieve net zero emissions by 2050. This goal aligns with global efforts under the Paris Agreement to limit global warming to well below 2 degrees Celsius above pre-industrial levels. Achieving this target will require significant transformation across all sectors of the economy. Vietnam’s ambitious climate agenda is marked by specific targets and statistics that outline the country’s path towards net zero emissions by 2050. These statistics not only highlight the urgency of the situation but also showcase the country’s commitment to tangible, measurable progress.

Energy Transition

• Renewable Energy Expansion: Vietnam aims to increase its renewable energy capacity to 15-20% of its total energy mix by 2030 and 25-30% by 2045. As of 2021, renewable energy, excluding hydropower, accounted for approximately 5% of the country’s total installed power capacity.
• Reduction in Coal Dependency: Plans include reducing coal-fired power from nearly 50% of the energy mix in 2021 to about 27% by 2045, demonstrating a significant shift towards cleaner energy sources.

Reforestation and Land Use

• Forest Coverage Goals: Vietnam has committed to increasing its forest cover to 45% of its total land area by 2030. This initiative is crucial as forests are a major carbon sink; currently, the forest coverage stands at approximately 42%.
• Carbon Sequestration Targets: Through reforestation and improved forest management, Vietnam aims to sequester up to 5 million tons of CO2 annually by 2030.

Industrial and Urban Development

• GHG Reduction in Industry: The industrial sector is targeted to reduce GHG emissions by 15-20% by 2030 compared to 2010 levels. This will involve adopting new technologies and improving the efficiency of existing systems.
• Sustainable Urban Infrastructure: By 2040, Vietnam plans to have at least 80% of new buildings comply with energy-efficient standards, contributing significantly to reducing urban energy consumption.

International Support and Achievements

• Funding and Investments: Vietnam requires an estimated investment of $368 billion for its energy transition alone by 2040. The country is actively seeking international financial and technical support to meet these needs.
• Global Partnerships: Vietnam participates in various international climate initiatives, such as the Powering Past Coal Alliance, to leverage global expertise and resources in achieving its climate goals.

Decree 06/2022/ND-CP

In early 2022, Vietnam took a significant step forward in its environmental regulatory framework by enacting Decree 06/2022/ND-CP. This legislative measure specifically targets the reduction of greenhouse gas emissions and the protection of the ozone layer, underscoring the country’s commitment to both local environmental health and global climate goals. The primary objective of Decree 06 is to provide a comprehensive legal framework for monitoring, reporting, and verifying GHG emissions across various sectors. Additionally, the decree aligns with international standards and commitments, particularly those related to the Montreal Protocol, which aims to phase out substances that deplete the ozone layer.

Key Provisions

• Mitigation of GHG emissions: The decree establishes requirements for large businesses to report and reduce GHG emissions. It also sets up a GHG inventory for certain establishments and prescribes the inventory’s frequency and methodology.
• Protection of the ozone layer: The decree outlines measures to manage, control, and mitigate ozone-depleting substances like HCFC, HFC, methyl bromide, and methyl chloroform. Entities using these substances must register with relevant authorities.
• Roadmap for GHG reduction: Vietnam aims to reduce GHG emissions by 7.3% by 2025 and 9% by 2030 compared to business-as-usual scenarios, with a conditional increase to 27% by 2030 with international support.
• Domestic carbon market: The decree includes plans for establishing a domestic carbon market, which would allow entities to trade carbon credits and incentivize GHG reduction efforts.
• Compliance and enforcement: The decree outlines penalties for non-compliance with GHG reduction and ozone layer protection requirements.

Regulated Entities Under Decree 06/2022/ND-CP

Decree 06/2022/ND-CP significantly updates Vietnam’s requirements for greenhouse gas inventories, specifically targeting entities with considerable GHG emissions. These entities are essential players in the national strategy to mitigate climate impacts and contribute to global emission reduction efforts. The decree categorizes entities based on their energy consumption, production processes, and waste management capacities.

• Energy Consumption and Production Entities:
  • Thermal Power Plants and Industrial Facilities: Entities with a total annual energy consumption exceeding 1,000 thousand tons of oil equivalent (TOE). These include large-scale manufacturers and power producers, which are typically significant sources of carbon emissions.
  • Transport Sector Entities: Companies engaged in freight transport by road that consume more than 1,000 TOE of fuel annually. This category aims to address emissions from heavy-duty vehicles which are substantial contributors to GHG emissions.
  • Commercial Buildings: Civil commercial structures consuming over 1,000 TOE annually, which include large office buildings, shopping malls, and hospitality venues, emphasizing the role of energy efficiency in urban settings.
• Waste Management Facilities: Facilities with an annual operating capacity of 65,000 tons or more. These entities are crucial in the management of municipal and industrial waste, with a focus on reducing methane emissions from waste decomposition.

Regulated entities are mandated to:

• Perform Annual GHG Inventories: They must accurately measure and report all sources of GHG emissions within their operations using prescribed methods and procedures. This ensures a comprehensive understanding of where emissions are occurring and the effectiveness of reduction strategies.
• Develop and Implement GHG Reduction Plans: By the end of 2025, entities must not only conduct GHG inventories but also develop and implement tailored plans to reduce emissions in line with technical and management capabilities. From 2026 to 2030, these plans will align with GHG emission quotas allocated by the Ministry of Natural Resources and Environment (MONRE).

Future Prospects:

• Participation in the Carbon Market: Post-2026, entities will engage in Vietnam’s emerging domestic carbon market, trading carbon credits and aligning with national reduction targets. This integration into the carbon market underscores a move towards a more regulated and economically incentivized approach to emission reductions.
• Biennial Review: The list of regulated entities is dynamic and will be reviewed every two years by the Prime Minister. This review will consider actual GHG emissions, socio-economic development conditions, and energy consumption trends, ensuring that the regulation remains relevant and effective.

Impact of Policies on GHG Emissions

Evaluating the impact of Vietnam’s climate policies through the lens of its GHG inventories reveals a complex picture with varying degrees of success across different sectors.

• Renewable Energy and Energy Efficiency: One of the bright spots has been the significant growth in renewable energy capacity, particularly in solar and wind energy. As of 2021, Vietnam had rapidly scaled up its solar power generation, becoming a leader in solar energy in Southeast Asia. The country’s total solar power capacity reached approximately 16,500 MW, marking an increase of over 25 times since 2019. This boom was largely driven by favorable government policies, including attractive feed-in tariffs and tax incentives. However, challenges such as grid capacity and the intermittent nature of renewable sources remain hurdles to maximizing their potential.
• Forest Regeneration and Management: Another area of notable progress is in forest regeneration and sustainable management. The reforestation initiatives have not only helped in enhancing carbon sequestration but also in preserving biodiversity and protecting water resources. However, illegal logging and land-use conflicts pose significant risks to the sustainability of these gains.
• Industrial and Transportation Sectors: In contrast, the industrial and transportation sectors have shown slower progress in reducing emissions. These sectors face numerous challenges, including outdated technology, lack of adequate regulations, and financial constraints. Industrial processes are still heavily reliant on coal and other fossil fuels, and the transportation sector struggles with high emissions from motorbikes and diesel vehicles.
• Public Awareness and Education: The effectiveness of Vietnam’s climate action is often hampered by limited public awareness and understanding of climate issues. Despite increasing educational efforts, there is a need for more comprehensive programs that engage all segments of society and highlight the practical steps individuals and communities can take to reduce their carbon footprint.

Future Outlook and Steps

Looking forward, Vietnam faces the dual challenge of balancing its rapid economic growth with the imperative to significantly reduce GHG emissions. The path forward includes several key areas of focus:

• Continued Investment in Clean Energy: To meet its energy needs while reducing carbon emissions, Vietnam will continue to invest heavily in renewable energy sources. This includes not only expanding solar and wind capacity but also exploring other potential sources such as offshore wind and biomass. Strengthening the electrical grid to accommodate these new sources and managing the transition from coal-powered plants will be critical.
• International Support and Collaboration: Vietnam will need to leverage international support for technology transfer and financial investment to achieve its climate targets. This includes participation in global climate initiatives, securing funding from international climate funds, and fostering partnerships with other nations and international organizations to access cutting-edge technologies and best practices.
• Enhancing Public Engagement and Education: To ensure the success of climate policies, increasing public awareness and engagement is crucial. This involves educational campaigns to inform the public about the impacts of climate change and the importance of sustainable practices. Encouraging community-based initiatives, such as local clean energy projects and waste reduction programs, can also play a significant role in driving grassroots support.
• Policy Reform and Enforcement: Strengthening environmental policies and ensuring their strict enforcement will be essential for reducing emissions across all sectors. This includes updating national standards for emissions, improving monitoring and reporting systems, and ensuring that all sectors comply with environmental regulations.

Conclusion

Vietnam’s journey towards reducing greenhouse gas emissions and achieving net zero by 2050 is a testament to the nation’s commitment to environmental sustainability and climate action. The implementation of policies such as Decree 06/2022/ND-CP and the ambitious targets set in the updated Nationally Determined Contributions underpin Vietnam’s proactive approach to addressing the challenges posed by climate change.

The country has made commendable progress, particularly in expanding its renewable energy sector and enhancing forest coverage. These successes not only contribute to global climate efforts but also bring local benefits, such as improved air quality and enhanced biodiversity. However, challenges remain, particularly in the industrial and transportation sectors, where emission reductions have been slower due to technological and financial constraints.

Looking ahead, Vietnam’s strategy involves a multifaceted approach that balances economic growth with environmental sustainability. Continued investments in clean energy, strengthened policy enforcement, international collaboration, and heightened public awareness are critical components of this strategy. By fostering an inclusive approach that engages all stakeholders—from government bodies and industries to local communities and individual citizens—Vietnam can sustain its momentum towards a greener future.

References

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