On May 9, 2024, the Department of Climate Change held a consultation workshop on the draft Decree on amendments and supplements a number of articles of Decree No. 06/2022/ND-CP on mitigation of greenhouse gas emissions and protection of ozone layer and the draft Circular on amendments and supplements a number of articles of Circular No. 01/2022/TT-BTNMT detailing the Law on Environmental Protection regarding climate change response.
Mr. Tang The Cuong, Head of the Department of Climate Change said: Decree No. 06/2022/ND-CP issued on January 7, 2022 to implement a number of articles in the Law on Environmental Protection 2020 is still being implemented. However, in recent years, the development of the carbon market and the demand for carbon credit exchange in the world have taken place very quickly, while Vietnam still lacks legal regulations to put the carbon market into operation. Therefore, the draft Decree and draft Circular have been developed, adjusted and supplemented with a number of regulations to help organizations and enterprises to carry out a greenhouse gas inventory and implement the carbon market.
The draft Decree and draft Circular focuses on 5 issues:
- Regulations on strengthening greenhouse gas inventories, serving the allocation of greenhouse gas emission quotas to prepare for carbon markets;
- Regulations on the allocation of greenhouse gas emission quotas;
- Regulations on the organization of carbon markets, management of domestic carbon credits, exchange of quotas and carbon credits on domestic carbon exchanges;
- Regulations on the international exchange of carbon credits in accordance with the Paris Agreement;
- Regulations on the protection of the ozone layer.
Attending the workshop, representatives of ministries, associations, enterprises in related fields actively gave comments to the draft text.
Representative of the Vietnam Confederation of Commerce and Industry (VCCI), Mr. Pham Van Hung contributed important recommendations related to the feasibility of implementing new regulations of many current enterprises, especially small and medium enterprises. These enterprises still do not have much understanding and experience about greenhouse gas inventory, the carbon market as well as relevant regulations in Decree 06/2022/ND-CP.
Regarding the allocation of emission quotas, VCCI representatives suggested that regulations on allocation methods need more specific guidelines, especially in choosing emission coefficients or calculation methods. The representative of Vietnam Electricity (EVN) – Mr. Tran Anh Tuan also expressed EVN’s opinions about the regulation on borrowing emission quotas. During peak seasons, thermal power plants can operate beyond normal levels and emit CO2 emissions more than the allocated level. Therefore, EVN expressed their desire to have a mechanism to facilitate thermal power and ensure the task of supplying electricity in peak seasons.
Regarding the issuance of certificates of registration of science and technology activities to appraisal agencies, representatives of the Vietnam Union of Science and Technology Associations gave the opinion that the licenses for scientific activities in which fields will be granted by respective competent authority. In addition, it is necessary to clarify whether the categories of facilities allocated greenhouse gas emission quotas are facilities included in Decision 01/TTg on the list of facilities that must carry out greenhouse gas inventories. Another issue is the licensing process for the agency to appraise the results of the greenhouse gas emissions inventory. Regulations on business registration conditions for these organizations may have problems with the Law on Investment because the Law has not recognized the category of greenhouse gas emission mitigation as a conditional business line.
From the perspective of local state management departments and appraisal agencies, Ms. Le Thi Mai Hoa, representative of Hanoi Department of Natural Resources and Environment hoped that the new Decree would better guide on the appraisal processes and operation mechanism of the Appraisal Council using the state budget or integrating it into fees and charges. The development of administrative procedures for appraisal also needs more specific guidelines and bases for implementation in practice. In addition, representatives of local DONREs and associations also expressed their desire for support, guidance and professional training on greenhouse gas inventory, appraisal of these inventory results for better performance.
Mr. Tang The Cuong said the consultation results will help complete the draft Decree and Circular to ensure quality and meet the requirements of practice.
