Vietnam to impose emission quotas on 150 largest enterprises

March 24, 2025 | 14:00

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The government is preparing to allocate greenhouse gas (GHG) emission quotas to 150 facilities across the thermal power, steel, and cement sectors, which together account for 40 per cent of Vietnam’s total emissions.

On March 24, Deputy Prime Minister Tran Hong Ha chaired a meeting to discuss and provide feedback on a draft decree amending Decree No.06/2022/ND-CP on controlling GHG emissions and protecting the ozone layer.

The draft amendment aims to clarify the Law on Environmental Protection and ensure Vietnam's compliance with international climate agreements.

Under the proposed roadmap, quota allocation will be implemented in phases over the next five years. In the initial stage, from 2025 to 2026, quotas will be assigned to 150 major emitters in the thermal power, steel, and cement sectors. These three industries are also subject to the European Union’s Carbon Border Adjustment Mechanism, making emission reductions vital to maintaining competitiveness in global markets.

“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,” said DPM Ha. “The content and technical terminology must be easy to understand so businesses and citizens can implement it effectively.”

The draft also includes provisions for decentralising the development and issuance of technical standards and regulations related to quotas and carbon credits. It calls for GHG emissions data and carbon credit information to be mutually recognised by international organisations and partners.

Looking ahead, ministries will propose annual quota allocations for facilities under their management. The Ministry of Natural Resources and Environment will compile and submit total national quotas by phase and year to the prime minister for approval before distribution to individual facilities.

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