World Meteorological Day 2023: Mitigation of greenhouse gas emissions and a roadmap for organizing - developing a carbon market in Vietnam!

World Meteorological Day is an annual event that is held every year on March 23 to commemorate the founding of the World Meteorological Organization (WMO) on March 23, 1950. Each year, this organization launches a theme for World Meteorological Day and this year it is “Future of Weather, Climate and Water across generations” – the propaganda theme of Viet Nam is "Information on weather, climate and water resources contribute to develop sustainable socio-economic for today and in the future".

Honoring the contributions of the Department of Meteorology and Hydrology (DMH):

This message affirms the value of information, weather, climate and water resources for society, at the same time, this is a call for each individual's responsibility in the world to show their roles and responsibilities before the present and future life, to proactively adapt to climate change and minimize the impact of environmental degradation.

This is also an opportunity to honor the contributions of the Agencies of Meteorology and Hydrology (DMH) worldworld to protecting human life and property against the impacts of natural disasters and climate change.

United Nations Framework Convention on Climate Change (UNFCCC): commits to Net-Zero Emissions by 2050

On July 25, 2022, The Prime Minister of Vietnam promulgated Decision No.888/QD-TTg approving for scheme setting out tasks and solutions for implementation of outcomes of the 26^th conference of the parties to the united nations framework convention on climate change (COP26) to proactively adopt the global low-carbon development trends, mobilize resources, innovate technologies for adopting new growth models, restructuring the economy, and making contribution to the global efforts to combat climate change.

On July 26, 2022, Deputy Prime Minister Le Van Thanh signed Decision No. 896/QD-TTg approving “The national strategy for climate change until 2050”. General objectives of strategy is effectively adapt, reduce vulnerability, losses, and damage caused by climate change; reduce greenhouse gas emission following net zero emission target by 2050, positively contribute and be responsible to international community in protecting global climate; utilize opportunities brought by climate change adaptation to shift growth model, increase resistance and competitiveness of the economy.

Some terms:

• Greenhouse gas include: carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). The gases have low concentration but high greenhouse effect are hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3) (Article 91 – Law on Environmental Protection).
• GHG emission quotas mean the amount of GHG emissions caused by a country or entity for a specified period of time, expressed as tonnes of carbon dioxide (CO₂) or tonnes of carbon dioxide equivalent (CO2).
• Carbon credit means any tradable certificate representing the right to emit one tonne of carbon dioxide (CO₂) or one tonne of carbon dioxide (CO₂) equivalent.

Entities for which GHG emission mitigation is mandory:

(Article 5, 6 - Decree No. 06/2022/ND-CP regulates on mitigation of green house gas (GHG) emissions and protection of ozene layer)

• Establishments on the list of sectors and facilities emitting GHG must make an inventory of GHG promulgated by the Prime Minister.
• The Ministry of Industry and Trade, the Ministry of Transport, the Ministry of Agriculture and Rural Development, the Ministry of Natural Resources and Environment, the Ministry of Construction.

Note: GHG-emitting facilities that must carry out GHG inventory are facilities with annual GHG emissions of 3.000 tonnes of CO2 equivalent or more or in one of the following cases: Thermal power plants, industrial production facilities with total annual energy consumption of 1.000 tonnes of oil equivalent (TOE) or more; Freight companies with total annual fuel consumption of 1,000 TOE or more; Commercial buildings with total energy consumption of 1.000 TOE or more; Solid waste handling facilities with annual operating capacity of 65.000 tonnes or more.

The above establishments are responsible for carrying out an inventory of greenhouse gas emissions and reporting according to the guidance of the field management ministry before March 31, 2023, organizing the implementation of GHG inventory every two years from 2024 onwards, sending it to the Provincial People's Committee before March 31 from 2025 for appraisal, finalizing the report on results of the grassroots greenhouse gas inventory and send to MONRE before December 1 of the reporting period starting from 2025.

Based on the GHG inventory results in the latest inventory period and implementation of the GHG emissions mitigation under facilities, the Ministry of Natural Resource and Environment shall take charge and cooperate with relevant ministries in formulating and promulgating GHG emission factor of each product applicable to the facilities. In the period from 2026 to 2030 and in every year for manufacturing or business facilities and organizations of the GHG emissions quotas allocation. (Article 11,12 – Decree No.06/2022/ND-CP).

Development roadmap and time to deploy the domestic carbon market in Viet Nam

Period until the end of 2027:

• Developing regulations on management of carbon credits, exchange of greenhouse gas emission quotas and carbon credits; develop regulations on the operation of carbon credit exchanges;
• Pilopting the mechanism of exchanging and clearing carbon credits in potential fields and guiding the implementation of the mechanism for exchanging and clearing domestic and international carbon credits in accordance with the PDP and international treaties to which the Socialist Republic of Vietnam is a contracting party;
• Establishing and organizing the piplot operation of carbon credit exchange from 2025;
•  Piloting the activities of capacity building, raising awareness about carbon market development.

Period from 2028:

• The organization operates an official carbon credit exchange in 2028;
• Regulating activities of connecting and exchanging domestic carbon credits with regional and world carbon markets.

Source: A Chau Environment Co., Ltd