Greenhouse gas inventory and carbon neutrality consulting services – Net Zero for businesses

A Greenhouse gas inventory serves as a pivotal initial step for businesses to comprehend their emission scenario, thereby formulating rational and efficacious strategies to curtail greenhouse gas emissions.

Defining Greenhouse Gas and Identifying Businesses That Require Greenhouse Gas Inventory

Greenhouse Gas & Its Inventory

As per the Environmental Protection Law (promulgated on November 17, 2020), greenhouse gases are atmospheric gases that induce the greenhouse effect. The primary greenhouse gases include CO2 (carbon dioxide), CH4 (methane), and N2O (nitrous oxide). Gases with lower levels but high potential for causing the greenhouse effect encompass HFCs (hydrofluorocarbons), PFCs (perfluorocarbons), SF6 (sulphur hexafluoride), and NF3 (nitrogen trifluoride). As defined by TCVN ISO 14064:1-2018, greenhouse gas emissions involve the release of greenhouse gases into the atmosphere.

The Greenhouse gas inventory, as elucidated in Decree No. 06/2022/NĐ-CP (issued on January 7, 2022), which governs the reduction of greenhouse gas emissions and the protection of the ozone layer, is the process of gathering information and data on greenhouse gas emission sources, calculating greenhouse gas emissions, and absorbing greenhouse gas within a defined scope and in a specific year following methods and procedures issued by authorized agencies.

Entities subject to greenhouse gas inventory

According to Decree No. 06/2022/NĐ-CP, establishments mandated to conduct a greenhouse gas inventory are those with annual greenhouse gas emissions of 3,000 tons of CO2 equivalent or more, or fall under one of the following categories:

• Thermal power plants, industrial production facilities with annual energy consumption of 1,000 tons of oil equivalent (TOE) or more;
• Freight transport businesses with annual fuel consumption of 1,000 TOE or more;
• Commercial buildings with annual energy consumption of 1,000 TOE or more;
• Solid waste treatment facilities with an annual operating capacity of 65,000 tons or more.

Decision No. 01/2022/QĐ-TTg of the Prime Minister (dated January 18, 2022) listed 1,912 establishments in the industry, trade, transportation, construction, natural resources, and environment sectors required to conduct a greenhouse gas inventory (in Appendices II, III, IV, and V). In 2023, the Ministry of Natural Resources and Environment drafted a Decision of the Prime Minister issuing a list of sectors and establishments emitting greenhouse gas required to update the greenhouse gas inventory, including 2,893 establishments, an increase of 981 establishments compared to Decision No. 01/2022/QĐ-TTg.

Establishments emitting greenhouse gas on the list are required to:

• Conduct greenhouse gas inventory, establish and maintain a greenhouse gas emission database system, and submit inventory results biennially to the Ministry of Natural Resources and Environment by December 1 of the reporting period;
• Develop and implement annual greenhouse gas emission reduction plans; integrate greenhouse gas emission reduction activities with quality management programs, cleaner production programs, and environmental protection programs of the establishment;
• Annually prepare reports on greenhouse gas emission reduction levels to implement the establishment’s emission reduction plan through measurement, reporting, and verification systems, and submit them to the Ministry of Natural Resources and Environment and relevant ministries, agencies, and provincial People’s Committees by December 31 of the reporting period (details in Article 7 of the 2020 Environmental Protection Law).

More than 1,900 establishments must conduct greenhouse gas inventories according to Decision No. 01/2022/QĐ-TTg (Illustration photo: internet)

In addition to the above regulations, public companies must conduct greenhouse gas inventories. Specifically, for public companies, when preparing annual reports (as guided by Circular No. 96/2020/TT-BTC), they include environmental impact reports: Total direct and indirect greenhouse gas emissions; initiatives and measures to reduce greenhouse gas emissions (Section 6, Part II, Appendix IV).

Moreover, some enterprises voluntarily conduct greenhouse gas inventories to calculate their carbon footprint, while also establishing a foundation to develop plans to reduce greenhouse gas emissions, aiming for long-term goals such as carbon neutrality and achieving Net Zero emissions.

Accompanying businesses conducting greenhouse gas inventories, aiming for carbon neutrality/Net Zero

Regarding greenhouse gas inventory and reporting, several international standards and tools can be mentioned such as ISO 14064-1:2018; ISO 14064-2:2019; ISO 14064–3: 2019; ISO 14065:2020; The GHG Protocol Corporate Accounting and Reporting Standard; United Nations Framework Convention on Climate Change (UNFCCC); Intergovernmental Panel on Climate Change (IPCC)… Vietnam’s related regulations and standards include: Decree 06/2022/NĐ-CP; Decision 01/2022/QĐ-TTG; Circular 96/2020/TT-BTC; Decision 2626/2022-BTNMT; National standards TCVN ISO 14064-1:2011; TCVN ISO 14064-2:2011; TCVN ISO 14064-3:2011…

Greenhouse gas and the scope of greenhouse gas emissions of enterprises

To best accompany businesses on their sustainable development journey, alongside clean energy solutions, Vu Phong Energy Group also provides services related to greenhouse gas inventory, emission reduction consulting, carbon neutrality/Net Zero through our member, VP Carbon.

The greenhouse gas inventory and emission reduction consulting services provided by VP Carbon are comprehensive solutions to help businesses manage and effectively reduce greenhouse gas emissions in accordance with legal regulations, while also enhancing credibility with customers and partners. In addition to greenhouse gas inventory, businesses are advised on suitable solutions to “green” the production, transitioning towards carbon neutrality/Net Zero. With the companionship of VP Carbon, businesses can save time by focusing on their core production expertise while still meeting domestic and international environmental requirements, increasing competitiveness in the market, and achieving sustainable development.

Vu Phong Energy Group

* Vietnamese: “Dịch vụ kiểm kê khí nhà kính và tư vấn trung hòa carbon”