Vietnam: The government will allocate greenhouse gas emissions quotas to 150 facilities across the cement, thermal power and steel sectors, according to a draft decree discussed by the government. Under the proposed roadmap, quota allocation will be implemented in phases over the next five years.
These sectors account for 40% of national emissions, according to the Vietnam Investment Review, and are also subject to the EU’s carbon border adjustment mechanism. The draft decree proposes decentralised development of technical regulations and mutual recognition of carbon credit data with international partners. Quotas will be proposed annually by ministries and submitted to the prime minister for approval.
Deputy prime minister Tran Hong Ha said “This is a technical decree with many variables. The Ministry of Natural Resources and Environment will provide a controlled framework and guiding principles using a ‘sandbox’ approach, allowing businesses to experiment while regulators monitor, evaluate and make adjustments.”
