Vietnam’s Proposed New Draft Regulations On Greenhouse Gas Emissions Reductions And Other Climate Change Adaptation Measures.

 

d)  MONRE will draft a scheme on the formation and development of a domestic carbon credit market and prepare to enter the international carbon credit market in 2021;

 

e)  MONRE will draft and promulgate a list of GHG Emission Factors (EF) regarding activities that emit and absorb GHG to apply to GHG inventories in accordance with all relevant regulations, starting from 2020 and updated once every two years; and

 

f)  MONRE will draft and promulgate guidelines on GHG inventories in 2020 and establish and operate a database of the GHG emissions of large emissions facilities before 31 December 2024.

 

B – Key supplemental policies on climate change as proposed under the new Draft Law

 

In order to more effectively address climate change, the Draft Law proposes the following key supplementations to the Current Law:

 

• Re-orientating climate change adaptation measures towards sustainable development and a low-carbon economy;

• New provisions utilizing climate change scenarios and socio- economic development forecasts to assess the impact, vulnerabilities and risks of climate change;

• New mechanisms to reduce the risks of climate change and GHG emissions to social security; and

• New tools and content regarding national databases and reporting requirements as well as national obligations and international cooperation on climate change and ozone layer protection.

   

These supplements have been proposed as part of the Vietnamese Government's efforts to effectively respond to climate change and ozone layer depletion as well as to strive towards a low GHG emission economy.

 

Specific policies on climate change adaptation measures

 

The Draft Law provides several specific measures to address and respond to climate change, including:

 

a) Climate Change Assessment

 

An assessment of the impacts and risks of climate change, as well as its potential to cause loss and damage to certain industries, regions and residences. This assessment is to be drafted on the basis of climate change scenarios and socio-economic development forecasts. Further guidelines are to be issued by MONRE.

 

Climate change adaptation measures will be specified in a National Plan to be drafted by MONRE with the Prime Minister's approval and to be revised and updated every 5 years.

In addition, MONRE will also be responsible for setting up and operating a supervision and assessment system for climate change adaptation activities. Accordingly, MONRE will be in charge at the national-level, while other Ministries, and the Provincial-level People's Committees will be responsible within their scope and industry of management.

 

c) Other measures

 

These include: initiating climate change adaptation activities to mitigate against the risks of natural catastrophes, ensuring social security, maintaining eco-systems and biodiversity; providing solutions to rising sea levels and urban flooding; and creating and duplicating climate change adaptation models.

 

Specific policies on reducing GHG emissions

 

The Draft Law inherits certain provisions from the Current Law, including regulations on the sustainable management of forest resources and the preservation of forest carbon reserves as well as the establishment and development of a domestic carbon credit market and participation in the international carbon credit market.

 

In addition, the Draft Law proposes additional active measures for reducing GHG emissions, including:

 

a)  Establishing and implementing cooperative mechanisms on reducing GHG emissions under international treaties to which Vietnam is a party;

 

b)  Maintaining a GHG inventory at a national, industrial and sectorial level (to be updated every 2 years); and

 

c)  Ensuring compliance with GHG inventories and the implementation of cooperative mechanisms.

 

MONRE shall also be specifically required to formulate detailed guidelines for the implementation of such GHG emissions reduction measures, including:

 

• A list of specific Ministries, sectors, regions and GHG emissions facilities that must conduct GHG inventories (subject to the Prime Minister's approval);

• A national-level GHG Inventory System and a National Measure, Report and Verification (MRV) System on GHG emissions reduction; as well as indexes of emissions data for the purpose of maintaining the GHG inventory;

• A National Report on GHG emissions; and

• A roadmap for the development of a domestic carbon credit market and participation in the international carbon credit market.

The Draft Law proposes a focused management, control and phasing out of ozone-depleting substances ("ODS") and GHG emissions under the Montreal Protocol.2

 

Specifically, the Draft Law aims to:

 

• Manage, control and mitigate the import, export and use of ODS and GHGs in line with the Montreal Protocol, with an aim of eventually phasing out such substances;

• Ensure that all manufacturers, trading facilities and service providers that utilize devices, production lines or products that contain or use ODS and GHGs, within the scope of the Montreal Protocol, prepare a roadmap for the replacement or phasing out of such substances;

• Encourage the gathering, re-use, recycling or destruction of ODS and GHGs in industrial and civil refrigerant equipment that is no longer in use; and

• Strictly prohibit the production, import, temporal import and re-export, and consumption of ODS and GHGs in accordance with the Montreal Protocol and relevant international treaties that Vietnam is a party to.

 

In relation to this topic, we note that on 4 September 2019, the Government of Vietnam issued Resolution No. 64/NQ-CP to ratify the Amendment to Address hydrofluorocarbons (HFCs) under the Montreal Protocol on Substances that Deplete the Ozone Layer. Under this Resolution, MONRE and MOIT were tasked with reviewing and formulating new regulations on import and export controls of HFCs substances.

 

Specific regulations on climate change reports

 

Every two years, certain authorities will be required to submit a Climate Change Adaptation Report. Specifically, MONRE will be responsible for providing reports on climate change adaptation to the Government and the National Assembly, while other Ministries and the Provincial-level People's Committees will report to MONRE on climate change adaptation within their scope and industry of management.

 

Under the Draft Law, these reports must include the following content:

 

• General view on climate change progress and impact;

• National GHG inventory results;

• Efforts made in regards to climate change adaptation and reducing GHG emissions;

• Status on the implementation of international commitments on climate change and ozone layer protection;

• Forecasts of the impact of climate change to socio-economic development and environmental preservation;

• Proposals for solutions to climate change.

 

Specific regulations on the National Climate Change Database

 

This proposed database is to contain all data and information on climate change as well as measures and activities taken in response to climate change and the depletion of the ozone layer. The database shall be established and updated by MONRE, based on information submitted by relevant Ministries, and the provincial-level People's Committees.

 

Specific regulations on incorporating climate change content to the master planning system

 

Under the Draft Law, master plans will be required to include specific content on responding to climate change, specifically:

 

• The impact of climate change to long-term development;

• Solutions and responses to climate change;

• Analytical assessments of the above solutions for the purposes of determining a socio-economic index.

   

The Draft Law also includes a list of the following master plans that must incorporate the above content.

 

• Master plans at the national level such as: the comprehensive master plan; the land-use master plan; and the marine spatial master plan;

• Master plans at an industry-level, including urban and rural development plans with the potential to significantly impact the environment such as: master plans on roads, railroads, ports, airports, power/energy, water resources, and minerals/radioactive ores exploration, exploitation and production, etc.);

• Master plans with technical and specialized aspects that may have major effects on the environment, such as: master plans on transportation infrastructure, irrigation, dykes, etc.; and

• Other master plans at a regional/provincial level, and master plans for any special administrative and economic regions.

   

C – Current plan for a carbon credit market

 

In regards to a market-based carbon credit market, MONRE has stated that the Katowice Rulebook has not provided any specific regulations. Therefore, the Draft GHG Decree contains a specific roadmap for the research and establishment of a carbon credit market in accordance with Vietnam's socio- economic development and international obligations.

 

However, the mitigation of GHG emissions through international aid and the development of a carbon market between states are yet to be addressed in the Draft GHG Decree. Rather, these measures are to be voluntarily implemented in accordance with the principle of reciprocity between states and applicability to Vietnam.

 

Under the Draft GHG Decree, the proposed contributions to GHG emissions mitigation cover the entire economy with a focus on key sectors such as energy, transport, construction, agriculture, land use, land use change and forestry (LULUCF) and waste.

 

As of June 2015, Vietnam has had 254 Clean Development Mechanism (CDM) projects accredited and registered by the CDM Executive Board (EB). Among these 254 projects, energy projects account for 87.6%, waste treatment for 10.2%, reforestation and afforestation for 0.4% and other projects for 1.8%.