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Vietnam publishes draft circular on guidance for GHG inventory and emission reduction for industrial sector

The Draft Circular on Technical Regulations for Measurement, Reporting and Verification of Greenhouse Gas Emission Reduction and Greenhouse Gas Inventory in the Industry and Trade Sectors was published by the Ministry of Industry and Trade of Vietnam (MOIT) on September 6, 2023, and a public consultation period followed. The Draft offers technical guidance for greenhouse gas (GHG) inventory and GHG emission reduction at the facility level in the industry sector under the control of MOIT. It does this by implementing Decree No. 06/2022/ND-CP Providing Regulations on Reduction of Greenhouse Gas Emissions and Protecting the Ozone Layer.

GHG inventory

Measurement, reporting and verification (MRV) of GHG emission reduction

The methodology for measuring and calculating GHG emission reduction results at the facility level is detailed in Article 28 of the Draft, in which the Business as Usual (BAU) scenario for facilities is defined as the expected emission with no GHG emission reduction measures implemented. Specifically, the BAU for a facility is determined based on the following rules:

● The baseline year is determined according to that of the Nationally Determined Contributions (NDC) report. It should be noted that Vietnam’s most recent NDC report, published in 2022, sets the baseline year to 2014.
● The average GHG emissions for the baseline year shall be calculated based on the emissions per product in the case that no GHG emission reduction measures are taken. The products defined in the Draft are referred to as “equivalent products.” For the purpose of calculating the emissions per product, different products produced at a facility are converted into the corresponding “equivalent products” as determined for each facility.