Pilot carbon market implementation, officially operational from 2029
The Government has just issued Decree No. 119/2025/ND-CP amending and supplementing a number of articles of Decree No. 06/2022/ND-CP dated January 7, 2022 regulating greenhouse gas emission reduction and ozone layer protection.
Amending and supplementing regulations on strengthening inventory and allocation of emission quotas
In recent times, the Government and the Prime Minister have resolutely directed ministries, sectors and localities to step up climate change response, implement measures to reduce greenhouse gas emissions to achieve the national greenhouse gas emission reduction target according to the Nationally Determined Contribution (NDC), towards achieving the goal of achieving net zero emissions by 2050. In particular, greenhouse gas inventory is an important task of sectors, fields and enterprises, greenhouse gas emission facilities to achieve greenhouse gas emission reduction targets in our country.
In the process of implementing Decree No. 06/2022/ND-CP, the Ministry of Natural Resources and Environment (now the Ministry of Agriculture and Environment ) received recommendations from agencies, organizations, enterprises, and experts proposing to supplement more specific regulations on greenhouse gas inventory, allocation of greenhouse gas emission quotas, carbon credit management and carbon market development, management and elimination of ozone-depleting substances and controlled greenhouse effect substances. Some recommendations are to adjust regulations to facilitate agencies, organizations, and enterprises to implement policies to reduce greenhouse gas emissions and protect the ozone layer.
Specifically, Decree No. 119/2025/ND-CP has amended many articles, supplemented and abolished a number of provisions of Decree 06. Regarding regulations on strengthening greenhouse gas inventory, appraisal of inventory results, appraisal of greenhouse gas emission reduction results, the Decree has added regulations on data collection, calculation of greenhouse gas absorption levels in ecological regions and in each province and centrally-run city with forests, and synthesis in the field-level greenhouse gas inventory report at Point b, Point c, Clause 3, Article 8.
Amending and supplementing regulations on appraisal of greenhouse gas inventory results and appraisal of greenhouse gas emission reduction results. The Ministry of Agriculture and Environment said that it accepted the opinions of agencies and organizations suggesting that it is necessary to continue perfecting regulations in the direction of promoting decentralization and delegation of power in state management to ensure compliance with the Party's guidelines and policies and the State's laws and policies. The draft Decree clearly stipulates the subjects, responsibilities, and contents of appraisal of greenhouse gas emission reduction and appraisal of greenhouse gas inventory results at the grassroots, sectoral and national levels.
Accordingly, the appraisal of the sector-level greenhouse gas inventory conducted by sector management ministries is based on the following contents: the completeness of the content, information, and data of the greenhouse gas inventory; the suitability of the identification of emission sources and sinks of greenhouse gas; the suitability of the greenhouse gas inventory method, applied emission coefficient, quality control method, quality assurance, and the information system and data on greenhouse gas emissions of the sector management ministry; and the assessment of the accuracy and reliability of the greenhouse gas inventory results.
The appraisal of the greenhouse gas inventory at the grassroots level is organized by the provincial People's Committee. The provincial People's Committee receives, reviews and synthesizes the results of the greenhouse gas inventory of the establishments in the area and sends them to the Ministry of Agriculture and Environment and the ministries managing the field. The Ministry of Agriculture and Environment will provide detailed instructions on the implementation. The appraisal of the results of the greenhouse gas inventory of establishments allocated greenhouse gas emission quotas is specified in detail compared to establishments not allocated quotas.
The Decree also stipulates that the independent appraisal unit for greenhouse gas inventory results and greenhouse gas emission reduction appraisal is an organization granted a certificate of registration for activities of certifying use value and verifying according to the provisions of law on business conditions for conformity assessment services.
The Decree does not specify greenhouse gas emission reduction targets according to the Nationally Determined Contribution (NDC) for sectors whose NDCs are updated in accordance with international regulations. The greenhouse gas emission reduction targets of sectors are approved by the Prime Minister in the content of the national NDC to ensure flexibility when the NDC is updated. Therefore, the Decree abolishes Annex I detailing greenhouse gas emission reduction targets of sectors by 2030.
Regarding the regulations on the allocation of greenhouse gas emission quotas, the Decree has added a method for determining greenhouse gas emission quotas for greenhouse gas emission establishments that are allocated quotas, and added a roadmap for allocating greenhouse gas emission quotas in 3 phases: 2025 - 2026, 2027 - 2028, 2029 - 2030. In the first phase of implementing quota allocation, consideration will be given to businesses to have room for development and familiarization, establishments with large emission levels in the three fields of thermal power, iron and steel production, and cement production will be allocated quotas. In the following phases, quota allocation will be regulated to achieve higher emission reduction targets. Accordingly, in the first phase, more than 100 establishments will be allocated quotas, accounting for about 40% of the total greenhouse gas emissions of establishments that must conduct greenhouse gas inventories according to the list issued by the Prime Minister.
Sector management ministries are responsible for synthesizing and proposing a list of establishments and the annual quota allocated to each establishment to be sent to the Ministry of Agriculture and Environment for synthesis and submission to the Prime Minister for approval of the total greenhouse gas emission quota. Based on the total greenhouse gas emission quota approved by the Prime Minister, the Ministry of Agriculture and Environment shall preside over and coordinate with relevant sector management ministries to allocate quotas to establishments.
Pilot carbon market implementation, officially operational from 2029
The Decree further specifies the subjects of greenhouse gas emission quota exchange and carbon credit exchange in Article 16 of Decree No. 06/2022/ND-CP. Supplementing the content of the National Registration System for greenhouse gas emission quotas and carbon credits for management purposes. The National Registration System for greenhouse gas emission quotas and carbon credits is a system that synthesizes information technology infrastructure elements, software, and data built to manage, operate, update, and exploit information on ownership of greenhouse gas emission quotas and carbon credits; and handle activities of borrowing, paying back, transferring, and offsetting greenhouse gas emission quotas.
In addition, detailed regulations on the exchange of greenhouse gas emission quotas and carbon credits are provided: the purchase and sale of greenhouse gas emission quotas is carried out by order matching on the Carbon Exchange or by agreement; the purchase and sale of carbon credits to offset emissions exceeding the quota is carried out by order matching on the Carbon Exchange; the payment, transfer and borrowing of emission quotas is carried out on the National Registration System.
Detailed regulations on the domestic carbon credit exchange and offset mechanism, including administrative procedures for methodology recognition, project approval, and carbon credit issuance. The carbon credit generation method applied to the domestic carbon credit exchange and offset mechanism is the method of calculating the amount of greenhouse gas emission reduction or absorption of the project compared to the amount of greenhouse gas emission or absorption of greenhouse gas before the project was applied.
Regarding the development roadmap, the timing of implementing the domestic carbon market has been stipulated based on the content of the Project on Establishment and Development of the Carbon Market approved by the Prime Minister, which will be piloted from now until the end of 2028 and officially operated from 2029.
According to the Ministry of Agriculture and Environment, many countries and international partners are currently interested in investing in projects and activities to reduce greenhouse gas emissions and create carbon credits in Vietnam; implemented through signing cooperation agreements under Article 6 of the Paris Agreement, or through signing agreements to buy and sell carbon credits from forest development and protection activities, technological innovation, energy saving and renewable energy development. This requires legal regulations for project registration activities, granting carbon credits for projects and accepting the transfer of international carbon credits.
The transfer of these credits under the provisions of the Paris Agreement requires written approval from the transferring country. These provisions also aim to internalize the provisions of the Paris Agreement when there are some guidelines for implementing Article 6 of the Paris Agreement at the COP29 Conference in 2024. The Decree also provides a list of measures and activities to encourage the reduction of greenhouse gas emissions for projects under the international carbon credit exchange and offset mechanism to implement bilateral cooperation based on the review of internationally supported greenhouse gas emission reduction measures in the NDC.
The Decree regulates the reduction of administrative procedures for the confirmation of the use of carbon credits to implement voluntary greenhouse gas emission reduction targets. Organizations and individuals who request confirmation of the amount of carbon credits used to implement voluntary greenhouse gas emission reduction targets will request and be automatically confirmed on the National Registration System for greenhouse gas emission quotas and carbon credits, without having to submit a request.
To carry out state management of greenhouse gas emission reduction activities and carbon market operations, the Decree supplements 8 administrative procedures to serve market operations in the direction of maximum simplification, transparency of settlement processes, ease of implementation, and convenience for organizations and enterprises. The Decree also stipulates the simplification of 2 existing administrative procedures. All administrative procedures are performed online on the National Public Service Portal.
TC
Source: https://baochinhphu.vn/nhieu-quy-dinh-moi-ve-giam-nhe-phat-thai-khi-nha-kinh-va-bao-ve-tang-ozone-10225061115530097.htm
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