Tiếng Việt
Not only are domestic requirements increasing, but Vietnam’s key export markets, such as the European Union (EU), have also set “new standards” for imported products, particularly regarding sustainable production. This compels Vietnamese businesses to change if they want to continue doing business with the world.
Key export markets such as the EU are imposing “new standards” on sustainable production, forcing businesses to adapt to continue participating in global trade. The goal by 2030 is to reduce greenhouse gas emissions by less than 45% and keep the temperature increase below 1.5 degrees Celsius. Vietnam has committed to achieving net-zero emissions by 2050.
Increasing the Number of Enterprises Required to Conduct Greenhouse Gas Inventory
Following COP 26, the Vietnamese Government issued decrees mandating large enterprises to conduct greenhouse gas inventories. Specifically, Decree 06 of 2022 requires major emitting facilities to conduct greenhouse gas inventories.
Following Decree 06, the Government also issued Decision 01 on “promulgating the list of sectors and facilities emitting greenhouse gases required to conduct greenhouse gas inventories.” This includes six sectors: (I) energy; (II) transportation; (III) construction; (IV) industrial processes; (V) agriculture, forestry, and land use; and (VI) waste, with 1,912 enterprises nationwide required to conduct inventories.
However, the number of facilities required to conduct greenhouse gas inventories will not stop at 1,912 as stated above. Decision 01 is currently under review and open for comments, which means the number of facilities required to conduct greenhouse gas inventories will likely increase quickly. It is highly probable that the number will rise to 2,900 enterprises, rather than the current 1,912.
“With the draft replacement for Decision 01, industries such as seafood, agricultural products, food processing, and packaging will be added to the list required to conduct greenhouse gas inventories, not just the six sectors mentioned above. Therefore, in the Mekong Delta region, the number of enterprises required to conduct greenhouse gas inventories will also increase, from 175 facilities under Decision 01 to 331 facilities under the new draft.”.
Vietnamese businesses are also under pressure from import markets as the EU requires goods to meet green and carbon-neutral standards. The EU’s CBAM regulation will tax high-emission imported goods to encourage cleaner production.
Enterprises must quickly transition their production to meet the new requirements and take advantage of opportunities to expand export markets. From now until 2030 is a critical period for Vietnamese businesses to transform in order to save costs and comply with international regulations.
Source: Compiled by NGO
