With these strong commitments, the Vietnamese government has been implementing clear policies, mechanisms, and concrete actions to realize sustainable growth and meet the Net Zero 2050 goal. One of these key actions includes mandatory GHG inventories for enterprises.
Why Vietnamese Businesses Must Conduct a GHG Inventory:
1. Compliance with Domestic Laws
The Vietnamese government has been developing a legal framework for reducing GHG emissions, including Decree 06/2022/NĐ-CP, which outlines the roadmap for GHG inventory and reporting for businesses under regulatory management.
2. Integration and International Competitiveness
Major export markets such as the EU and the US are tightening their carbon emission regulations. The EU’s Carbon Border Adjustment Mechanism (CBAM) will directly impact Vietnamese exporters in industries like steel, cement, aluminum, and fertilizers. Conducting a GHG inventory enables businesses to proactively adapt and maintain their competitive edge in the global market.
3. Access to Green Finance Policies
Businesses that develop emission reduction strategies and ensure GHG transparency will have better access to preferential loans, green investment funds, and international support programs for transitioning to sustainable business models.
4. Preparation for Vietnam’s Domestic Carbon Market
Vietnam is developing a carbon market expected to be operational by 2028. Companies that conduct early GHG inventories will have an advantage in carbon credit trading and optimizing compliance costs.
5. Brand Protection and Corporate Social Responsibility
Consumers are increasingly concerned about the sustainability of products and businesses. Conducting and publicly disclosing GHG emissions inventories helps companies build a positive brand image, attract environmentally conscious customers, and appeal to responsible investors.
With Vietnam’s commitments at COP26, GHG inventory is not only a regulatory obligation but also an opportunity for businesses to proactively adapt to the global green economy trend, enhance competitiveness, and ensure long-term sustainable growth in an increasingly globalized world.
