What is greenhouse gas inventory?

1. What is Greenhouse Gas Inventory?
Greenhouse gas inventory (GHG inventory) is generally known as the process of calculating, quantifying, and assessing GHG emissions from the emission sources of a country, local community or corporation within a defined scope and timeframe. 
In Vietnam, GHG inventory is regulated under Article 3.9 of Decree No. 06/2022/ND-CP by the Government on "Regulations on GHG Emission Reduction and Ozone Layer Protection" and defined as “the process of collecting information and data on GHG emission sources, calculating emissions and absorption within a specified scope and for a particular year, based on methodologies and procedures issued by authorities.”

2. What is the purpose of Greenhouse Gas Inventory?
GHG inventory is to identify the sources and quantities of emissions and provides essential information to assess its impact on climate. By monitoring and evaluating GHG inventory data, emission reduction programs can be adjusted for greater efficiency, contributing to sustainable development goals.

3. How is Greenhouse Gas Inventory applied?
3.1. At the national level

• Compliance with international commitments: GHG inventory enables nations to monitor and report emissions in compliance with international agreements, (such as the Paris Agreement on Climate Change), ensuring transparency in fulfilling climate commitments while reinforcing the nation’s credibility and accountability within the global community.
• Assessment of national emissions: GHG inventory helps the government quantify the total emissions from different sectors, identify major emission sources, and pinpoint priority areas for emission reductions.
• Supporting national climate policy development: Data from the GHG inventory provide critical insights for developing effective strategies to manage emissions and formulate national climate policies.
• Monitoring climate goals: Through the GHG inventory, nations can track their progress toward climate targets, such as Nationally Determined Contributions (NDCs) or Net Zero goals. It also serves as a foundation for achieving these objectives.
• Supporting the quota trading and carbon credit markets: GHG inventory data can serve as the basis for allocating quotas and operating the carbon market. 

3.2. At the local community level

• Assessment of local community emissions: GHG inventory enables local communities to identify their total emissions from various sectors, pinpoint the major emission sources, and determine priority areas for emission reductions.
• Supporting emission reduction policies development: By conducting a GHG inventory, local communities are provided with a scientific basis to propose and implement emission reduction strategies that are tailored to the specific characteristics and needs of the community.
• Monitoring the progress of emission reduction policies: GHG inventory assists communities to track their emissions levels and evaluate the effectiveness of climate policies implemented in the region.

3.3. At the corporate level 

• Compliance with legal requirements: Both international and national laws have established many requirements for GHG inventory. Therefore, conducting a GHG inventory is a mandatory requirement for businesses to comply with legal obligations.
• Emission evaluation and management: GHG inventory allows enterprises to identify key emission sources and levels, enabling them to devise appropriate emission reduction plans.
• Enhancing brand value and accessing green investment: GHG inventory helps enterprises meet the necessary conditions for sustainable development, thereby boosting brand value and increasing opportunities to access green investment sources.
• Cost savings and improve business efficiency: By identifying emission sources, enterprises can optimize energy and raw material usage, reduce operational costs, and enhance economic efficiency.
• Participation in carbon markets: Through the GHG inventory, enterprises can quantify the carbon credits that they accumulate from emission reductions, allowing them to trade these credits in carbon markets.