Decree 06/2022/ND-CP regulating greenhouse gas emission reduction and ozone layer protection is an important legal document in implementing the Law on Environmental Protection 2020 and Vietnam's commitment to the Net Zero target by 2050. After 02 years of active implementation, the Ministry of Natural Resources and Environment has continued to adjust and supplement more details to make the content of the Decree closer to reality and easier to implement. At the same time, the adjustment and supplementation will strengthen the solid legal foundation for stakeholders on the green transformation journey.
The Ministry of Justice is in the process of reviewing the new draft before the Government officially approves and promulgates it. GREEN IN has reviewed and analyzed based on the Draft Decree amending Decree 06/2022/ND-CP and the Policy Impact Assessment Report publicly posted on the Ministry of Justice's Electronic Information Portal on July 04, 07.
Notable changes related to regulations on GHG emission reduction include:
1. Strengthening GHG inventory and appraisal of inventory results
[Reason] Learning from international experience, for GHG inventory reports of establishments allocated quotas, there needs to be an independent professional unit to appraise them to ensure accuracy, transparency and objectivity.
[Change] Clause 6, Article 11 is amended to remedy the following:
- For facilities that are not allocated emission quotas, the inventory report will still be appraised by the specialized agency of the provincial People's Committee.
- For establishments allocated quotas, the inventory report must be appraised by an independent, professional unit.
2. Supplementing regulations on appraisal of GHG emission reduction plans
[Cause and Change] Decree 06 does not provide detailed regulations on the appraisal of GHG emission reduction plans, so the new draft Decree has added regulations on the order and procedures for appraising GHG emission reduction plans (2026-2030 period) linked to the appraisal of the results of the first GHG inventory.
[Unclear Point] However, there is an unclear point that the new draft still maintains the regulation that the time for establishments to submit the first GHG inventory report is March 31, 3 and to submit the GHG emission reduction plan is December 2025, 31. These two time points are quite far apart (12 months). Therefore, the regulation on the simultaneous appraisal of these two documents is not reasonable and consistent.
3. Supplementing clarification of the conditions for the unit to appraise the inventory report and the results of GHG emission reduction and the licensing process
[Reason] Decree 06 only stipulates the conditions for appraisal units, but does not stipulate the procedures and documents required to apply for a license.
[Change] Article 14 of the new draft Decree has added details on procedures and documents for requesting a Certificate of eligibility for conducting appraisal of GHG emission inventory and mitigation results.
At the same time, adjust the conditions for the appraisal unit as follows:
- Have a legal decision or registration to establish
- Organization recognized by UNFCCC or has TCVN ISO 14065;
- Organization with UNFCCC certified technicians or ISO 14064-3 certified
4. Adjusting the subjects and timing of emission quota allocation
[Reason] Decree 06 stipulates that the Government will allocate GHG emission quotas for the period 2026-2030 to all (2166) establishments under Decision 13/2024/QD-TTg. However, the implementation of GHG inventories in the initial phase has encountered difficulties because many establishments have not provided detailed data, so there is a lack of basis for determining and allocating quotas. At the same time, the Ministry of Natural Resources and Environment has adopted international experience and in the initial phase, only allocated emission quotas to enterprises in the large emission sector.
[Change] Article 7.4 and Article 12.2 of the new draft Decree have adjusted the subjects of emission quota allocation in the first phase (from 2025-2026) to include only the three largest emission sectors: thermal power, iron and steel, and cement. From 03 onwards, the Government will allocate emission quotas to the remaining facilities.
Sectoral management ministries are responsible for allocating emission quotas to facilities under their management, instead of the Ministry of Natural Resources and Environment allocating to all facilities.
(to be continued)