Green Export

Certain advantages from the implementation of the UK's CBAM

Besides the significant challenges, from another perspective, Vietnamese businesses also have certain advantages with the implementation of the UK's CBAM:

- Firstly, except for businesses producing and exporting ceramic and glass products, businesses in other CBAM goods sectors (especially iron and steel, aluminum) may already have experience with the EU's CBAM (which has been applied since October 2023, starting with the CBAM declaration obligation), therefore they may not be too unfamiliar or find it too difficult to carry out the responsibility of compiling and providing emissions information for CBAM goods to UK importers;

- Secondly, implementing the regulations in Decree 06/2022/ND-CP on Greenhouse Gas Emission Mitigation and Ozone Layer Protection of the Government, several businesses in some high-emission production sectors have begun to implement greenhouse gas emission inventory obligations for their production activities according to the roadmap. Although the detailed contents are not the same, the experience from greenhouse gas emission inventories according to domestic legal regulations can help businesses more easily carry out the aggregation and calculation of emissions within the framework of the UK's CBAM when this mechanism is officially implemented.

Regulations on Greenhouse Gas Inventories in Vietnam

Entities required to conduct greenhouse gas inventories:

- Production facilities with greenhouse gas emissions of 3,000 tons of CO2 equivalent/year or more;

- Thermal power plants, industrial production facilities with total electricity consumption of 1,000 tons of oil equivalent/year or more;

- Freight transport businesses with total fuel consumption of 1,000 TOE/year or more;

- Commercial buildings with total energy consumption of 1,000 TOE/year or more;

- Solid waste treatment facilities with an operating capacity of 65,000 tons/year or more.

Greenhouse gas inventory roadmap:

- 2023: Provide information, data, and develop inventory plans;

- 2024: Conduct facility-level inventories, prepare biennial inventory reports;

- 2025: Finalize facility-level greenhouse gas inventory reports; approve inventory plans for the 2026-2030 period and submit them to the Ministry of Natural Resources and Environment, the line ministry, and the Department of Natural Resources and Environment;

- 2026-2030: Reduce emissions, trade carbon credits.

Source: Decree 06/2022/ND-CP on Greenhouse Gas Emission Mitigation and Ozone Layer Protection

Source: Center for WTO and International Trade - VCCI 

Decree 06/2022/ND-CP is attached below:

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