Greenhouse gas (GHG) emissions are a major contributor to climate change, and businesses have a significant role to play in reducing these emissions. In Vietnam, the government has implemented policies to encourage businesses to develop GHG inventories and reduce their carbon footprint. The most prominent is Decree No. 06/2022/ND-CP on mitigating greenhouse gas (GHG) emissions and protecting the ozone layer. This Decree elaborates on some articles of the Law on Environmental Protection, including Article 91 on reducing GHG emissions, article 92 on ozone layer protection, and Article 139 on the organization and development of a domestic carbon market. In this blog post, we will discuss the actions that Vietnam businesses should take when executing GHG inventory development policies.
1. Understand the policy requirements
The first step for businesses is to understand the policy requirements for GHG inventory development. Each company has the responsibility to organize GHG inventory, build and maintain a database of GHG emissions and send inventory results to the Ministry of Natural Resources and Environment every 02 years by December 01 of the reporting period for consolidation and reporting to the Prime Minister. Moreover, businesses also need to prepare an annual report on the reduction of GHG emissions to implement their GHG emissions reduction plan using the measurement, reporting, and appraisal system.
The Vietnamese government has issued guidelines for GHG inventory development, which businesses should familiarize themselves with. These guidelines outline the scope of the inventory, the emissions sources to be included, and the reporting requirements.
2. Conduct a baseline assessment
Methods for measurement, reporting, appraisal of reduction of Green House Gas (GHG) emissions, and GHG inventory development in waste management. Once businesses understand the policy requirements, they should conduct a baseline assessment of their emissions. This assessment will help businesses identify their major sources of emissions and set targets for reduction. The assessment should cover all emissions sources, including direct emissions from operations and indirect emissions from purchased electricity, transportation, and waste disposal.
Based on the baseline assessment, businesses should develop a GHG inventory. The inventory should include all emissions sources identified in the baseline assessment and should be consistent with the policy requirements. The inventory should be verified by a third party to ensure accuracy and credibility.
3. Set reduction targets
Once the inventory is complete, businesses should set reduction targets to reduce their carbon footprint and contribute to the fight against climate change. These targets should be ambitious but achievable and should be based on the emissions reduction potential identified in the baseline assessment. This means that businesses should consider their current emissions levels and identify areas where they can reduce emissions. For example, they may consider switching to renewable energy sources, improving energy efficiency, or reducing waste.
To achieve these targets, businesses should develop a plan that includes specific actions and timelines. This plan should outline the steps that the business will take to reduce emissions, including the resources and support needed to implement these actions. It is important for businesses to regularly monitor and report on their progress toward their targets to ensure that they are on track to meet their goals.
4. Implement reduction measures
With reduction targets in place, it is important for businesses to implement measures to reduce their emissions. There are several ways that businesses can reduce their emissions, including energy efficiency improvements, switching to renewable energy sources, and reducing waste.
Energy efficiencyimprovements: Businesses can reduce their energy consumption by implementing energy-efficient technologies and practices. This may include upgrading lighting systems, improving insulation, and optimizing heating and cooling systems.
Switching to renewable energy sources: Businesses can reduce their reliance on fossil fuels by switching to renewable energy sources such as solar, wind, or geothermal energy. This can help to reduce their carbon footprint and contribute to a more sustainable future.
Reducing waste: Businesses can reduce their emissions by reducing waste and implementing recycling and composting programs. This can help to reduce the amount of waste that ends up in landfills, which can produce methane emissions.
In addition to these measures, businesses should also consider engaging their suppliers and customers in their emissions reduction efforts. This may include working with suppliers to reduce the emissions associated with the production and transportation of goods and encouraging customers to reduce their own emissions by providing information and incentives.
5. Monitor and report progress
Finally, businesses should monitor and report their progress toward their reduction targets. This will help them identify areas where further action is needed and demonstrate their commitment to reducing their carbon footprint. Reporting involves communicating the results of monitoring to stakeholders, such as investors, customers, and employees. Reporting also should be consistent with policy requirements and should be verified by a third party to ensure accuracy and credibility. This can help to build trust and demonstrate the business’s commitment to reducing its carbon footprint.
In addition to monitoring and reporting, businesses should also consider setting interim targets and regularly reviewing their reduction targets to ensure they remain ambitious and aligned with the latest science and policy developments.
Conclusion
Overall, setting reduction targets and developing a plan to achieve them is an important step for businesses to take in reducing their carbon footprint and contributing to a more sustainable future. Businesses in Vietnam have a significant role to play in reducing GHG emissions and mitigating climate change. By understanding policy requirements, conducting a baseline assessment, developing a GHG inventory, setting reduction targets, implementing reduction measures, and monitoring and reporting progress, businesses can make a meaningful contribution to a more sustainable future.
Lead Author:
Lan Nguyen Co-Founder, Head of Science & Policy Email: lan.nguyen@nuoa.io
Ms. Lan Nguyen does her PhD research in Economics, Environment, Evolution, and Ecology at the prestigious Dartmouth College (USA). Her research focuses on green growth policy, natural resource management, and environment policy and ecology
Co-Author: Long Pho Business Analyst – Nuoa.io Email: long.pho@nuoa.io
