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| Thai Binh 2 thermal power plant__Photo: VNA |
In order to achieve the greenhouse gas (GHG) emission reduction targets set in the Nationally Determined Contributions (NDCs) toward the goal of achieving net-zero emissions by 2050, the Government on June 9 issued Decree 119/2025/ND-CP on solutions to realize these targets.
The new Decree amending and supplementing a number of articles of Decree 06 of 2022, providing the mitigation of greenhouse gas emissions and protection of the ozone layer, will take effect on August 1, 2025.
As specified in the new Decree, GHG emission mitigation goals will be approved by the Prime Minister in NDCs, including the goals of GHG emission mitigation for the energy, agriculture, land use, forestry and waste management sectors, and industrial processes suitable to the country’s socio-economic development conditions and treaties to which the Socialist Republic of Vietnam is a contracting party.
As per the revised provisions on allocation of GHG emission allowances, the Ministry of Agriculture and Environment is assigned to propose to the Government on the allocation of GHG emission allowances to establishments on the Prime Minister-issued list of GHG-emitting sectors and establishments subject to GHG inventory in three phases of 2025-2026, 2027-2028 and 2029-2030. Allowances of the first phase will be allocated to thermal power plants, and steel and cement producers before December 2025.
The new Decree also provides method to determine GHG emission allowances which must be based on the GHG emission level per unit of product; GHG emission reduction targets of sectors and establishments under their production and business plans; emission reduction expectations of establishments; and technological and financial capabilities of establishments in implementing the GHG emission reduction targets.
According to the new decree, the National Registry for Emission Allowances and Carbon Credits will be established in 2028 to manage, operate, update and use information on the ownership of GHG emission allowances and carbon credits and to process the borrowing, return, transfer and clearing of GHG emission allowances.
Upon the allocation of GHG emission allowances, the Ministry of Agriculture and Environment will update the amount of allowances on the accounts of establishments that are allocated GHG emission allowances on the National Registry for Emission Allowances and Carbon Credits and concurrently send such data to carbon exchange operators for update.- (VLLF)
