Supplementing regulations on the roadmap for allocating greenhouse gas emission quotas to 3 sectors
As expected, in the first phase, quotas will be allocated to establishments with high emissions in three fields: thermal power, iron and steel production, cement production...
On May 9, 5, the Department of Climate Change, Ministry of Natural Resources and Environment organized a consultation workshop on the draft Decree amending and supplementing Decree No. 2024/06/ND-CP of the Government and the draft Decree No. draft Circular amending and supplementing Circular No. 2022/01/TT-BTNMT.
Director of the Department of Climate Change Tang The Cuong, said that implementing regulations of the 2020 Law on Environmental Protection on reducing greenhouse gas emissions in Article 91, protecting the ozone layer in Article 92, organizing and developing the market carbon market in Article 139, on January 07, 01, the Government issued Decree No. 2022/06/ND-CP regulating greenhouse gas emissions mitigation and ozone layer protection. Based on the assessment of the implementation of Decree No. 2022 and the international and domestic context, there are requirements for amending and supplementing a number of articles to meet practical requirements.
The draft Decree and draft Circular have been developed, adjusting a number of current regulations and adding a number of new regulations to create favorable conditions for agencies, organizations and businesses to implement policies. policies on reducing greenhouse gas emissions, developing carbon markets, and protecting the ozone layer.
QUOTA ALLOCATION FOR FACILITIES IN 3 LARGE EMISSION SECTORS
According to Mr. Cuong, the draft Decree focuses on 5 groups of issues. These include regulations to strengthen greenhouse gas inventory to serve the allocation of greenhouse gas emission quotas to prepare for the carbon market; regulations on greenhouse gas emission quota allocation;
Along with that, the draft also stipulates the organization of the carbon market, management of domestic carbon credits, exchange of quotas and carbon credits on the domestic carbon trading floor; Regulations on international carbon credit exchange and ozone layer protection.
For specific information about the amendments and supplements, Mr. Luong Quang Huy, Head of the Department of Greenhouse Gas Emissions Mitigation and Ozone Protection, emphasized the need to apply carbon pricing tools to participate in the market. The domestic and international carbon market in the near future will lead to a number of requirements to change regulations related to greenhouse gas inventories.
Accordingly, it is necessary to strengthen the greenhouse gas inventory to serve the process of allocating greenhouse gas emission quotas to a number of specific subjects.
However, there are 3 objects (thermal power, iron and steel, cement) that will have their greenhouse gases inventoried in a new, more detailed form.
In addition, the draft Decree will add a unit to evaluate the results of this inventory to ensure the data is complete, accurate and updated. Adding carbon sequestration activities from forests, providing detailed data to each locality to support activities towards net zero emissions, as well as participating in voluntary credits in the future...
Amend regulations on appraisal of grassroots-level greenhouse gas emission mitigation plans and grassroots-level greenhouse gas emission mitigation results. A new point is that the draft has added a list of greenhouse gas emission establishments that must conduct a greenhouse gas inventory in the livestock sector.
The representative of the Department of Climate Change also said that the draft decree also proposes to supplement the roadmap for allocating greenhouse gas emission quotas. In the first phase (2025-2026), quotas will be allocated to establishments. There are large emissions in three areas: thermal power, iron and steel production, and cement production. It is expected that about 3 establishments will be allocated quotas in the first phase, accounting for about 200% of the total greenhouse gas emissions of establishments subject to inventory. This serves and applies to carbon credit quota exchange systems (mandatory market, compliance market) for a number of businesses in these three sectors.
Accordingly, the Ministry of Industry and Trade proposes the annual quota allocation for each thermal power plant and iron and steel production facility, sending it to the Ministry of Natural Resources and Environment before October 31, 10;
The Ministry of Construction proposes the annual quota allocation for each cement production facility and sends it to the Ministry of Natural Resources and Environment before October 31, 10;
In addition, the draft proposes to amend the regulations on quota allocation organization in the direction that field-managing ministries are responsible for synthesizing and proposing a list of establishments and the amount of quota allocated annually to each establishment. Department sends the Ministry of Natural Resources and Environment to synthesize and submit to the Prime Minister for approval the total greenhouse gas emission quota and reserve quota.
Based on the total emission quota approved by the Prime Minister, the Ministry of Natural Resources and Environment presides over and coordinates with relevant ministries to allocate quotas to establishments.
Regarding regulations on carbon market organization and domestic carbon credit management, Mr. Nguyen Van Minh, Head of the Department of Climate Change Economics and Information, said the draft amends the subjects participating in the carbon market; adds regulations on the mechanism for exchanging and offsetting carbon credits; adds regulations on the National Registration System.
In particular, the draft has added regulations on the Carbon Exchange; Amending regulations on the exchange of greenhouse gas emission quotas and carbon credits on the carbon trading floor...
COMMENTS ON A FEASIBILITY ROADMAP TO HAVE A MARKET FOR EXCHANGE OF CARBON CREDIT AND QUOTES EARLY
At the workshop, experts, businesses, and associations provided comments to ensure the feasibility of the amended and supplemented contents; Advantages and difficulties in the implementation process...
Opinions emphasized the need to amend the Decree to accelerate the construction of the carbon credit market, reduce emissions, promote technological transformation, and that funding from this market can support businesses. Invest in advanced technology to quickly pay back capital and expand production.
Representative of the Legal Department, VCCI said that many businesses are interested in the issue of greenhouse gas inventory. According to the draft Decree, it is expected to push the roadmap for inventory and quota allocation earlier than Decree 06. Therefore, it is necessary to consider the roadmap because if it is accelerated, it may impact domestic businesses, including There are many businesses with limited potential and little understanding of new fields.
Regarding quota allocation regulations, VCCI believes that it is necessary to clarify the method for businesses to proactively estimate in production and business plans, determine emissions, and allocate quotas.
Agreeing and supporting the necessity and viewpoint of developing the revised Decree 06 in the spirit of promoting early implementation of quota exchange and carbon market development, representatives of the Department of Science and Environment, EVN Group Comments, according to the draft roadmap, before October 31, 10, the Ministry of Industry and Trade proposes the annual quota allocation for each thermal power plant and iron and steel production facility and sends it to the Ministry of Natural Resources and Environment. school. This is a very difficult goal.
In addition, the Group proposed to consider the issue of allowing quotas at the Group or corporation level so that the Group can be proactive in coordinating and exchanging credits between establishments and thermal power plants.
Regarding regulations on borrowing emission quotas, in the context of increasing national electricity demand, in case a thermal power plant operates beyond the normal level proposed by the manufacturer, it will lead to emissions. CO2 is greater. The representative of EVN proposed that there could be a mechanism to facilitate thermal power plants and EVN to ensure electricity supply tasks, for example during the dry season of years...
Commenting on the implementation roadmap, representatives of the Environmental Safety Committee and Vietnam Cement Corporation proposed the amount of quota allocated to cement production facilities in accordance with the current actual situation to ensure feasibility.
According to the representative of the Vietnam Livestock Association, for livestock farmers, implementing declaration and inventory of greenhouse gas emissions, quotas and enforcement of reductions is a difficulty. Therefore, to ensure feasibility, it is necessary to consider including livestock facilities and fields in implementing greenhouse gas inventories. Because compared to businesses in other industries, the livestock industry is still very difficult.
The Livestock Association recommends that there should be a roadmap and from now until 2027, livestock industry establishments should not be included in the greenhouse gas inventory to have time to prepare to support farmers. During this time, large establishments should be encouraged to voluntarily participate.
Regarding the carbon credit market, a representative of the Vietnam Association of Refrigeration and Air Conditioning Technology stated that the number of businesses and third parties to inventory and verify greenhouse gases is still very small. To inventory greenhouse gases is a combination of many different fields.
This expert is also concerned about the issue of conducting greenhouse gas inventories in the energy sector (which accounts for a large proportion of emissions)... This is one of the barriers to implementing the revised Decree and promoting construction. carbon credit market and quota allocation...
Therefore, it is necessary to promote communication, human resource training, and certification for units to ensure the implementation of the carbon market pilot by 2025 as well as quota allocation and emission reduction, representatives of this Association commented. recommendation.
Article taken from electronic magazine VnEconomy: https://vneconomy.vn/bo-sung-quy-dinh-lo-trinh-phan-bo-han-ngach-phat-thai-khi-nha-kinh-cho-3-linh-vuc.htm