The greenhouse gas inventory is a crucial activity and tool that enables businesses and nations to manage and assess emissions, environmental fluctuations, climate change, and atmospheric conditions. Beginning in 2024, facilities obligated to conduct greenhouse gas inventories must establish a biennial greenhouse gas inventory report at the facility level, following Template No. 06 in Appendix II, as issued in accordance with point b, clause 4, Article 11 of Decree 06/2022/ND-CP.

 

What is greenhouse gas inventory?

Greenhouse gases (abbreviated as GHG) refer to the emissions produced by the activities of various living organisms on Earth, including humans, animals, and plants. This implies that greenhouse gases are generated from processes such as livestock farming, agriculture, industrial production, and transportation. The components of greenhouse gases include CO2, CH4, NO2, HFCs, PFCs, SF6, and NF3. The metric used to quantify greenhouse gases is known as Carbon Dioxide Equivalent (symbolized as CO2e).

What is greenhouse gas inventory?

 

 

Greenhouse gas inventory (also known as carbon accounting) involves the systematic collection of data and information regarding emission sources, as well as the calculation of the quantities of greenhouse gas emissions and absorptions within a specified scope over a particular year. This inventory is conducted according to methods and procedures established by the relevant authorities.

The greenhouse gas inventory for a project, business activity, or a nation aims to provide information essential for measuring and managing emissions, supporting efforts to mitigate climate change, and serving as a foundation for developing measures to enhance environmental performance.

 

Why is it necessary to inventory greenhouse gases?

As international markets, particularly the European Union, become increasingly stringent regarding emission standards, greenhouse gas inventories are not only a mandatory requirement and a legal obligation to fulfill, but they also present an opportunity for Vietnamese enterprises to excel!

Compliance with Legal Regulations  

In pursuit of the global Net Zero objective by 2050 and in response to climate change, governments in numerous countries, including Vietnam (Decree 06/2022/ND-CP), have enacted stringent regulations concerning greenhouse gas inventories. Consequently, businesses must diligently research, conduct appropriate inventories, and report accurately to ensure adherence to legal mandates and avert potential penalties

Why is it necessary to inventory greenhouse gases?

 

Enhancing brand reputation  

In the modern economy, where environmental issues and green products are increasingly emphasized, greenhouse gas reporting and inventory serve as a testament to a company's commitment to its mission of environmental protection, thereby contributing to the enhancement of the brand's image.

 

Reduce operating costs

The inventory of greenhouse gas emissions presents an opportunity for businesses to identify significant sources of emissions and areas of energy waste, thereby optimizing production processes and implementing strategies for efficient energy usage. This not only aids in minimizing emissions and reducing costs but also enhances performance and profitability for the enterprise.

Furthermore, by reducing emissions, businesses simultaneously mitigate risks associated with the Carbon Border Adjustment Mechanism (CBAM) when exporting to the EU market, which currently applies to commodities such as steel, aluminum, cement, electricity, hydrogen, and fertilizers.

 

Approaching green financing  

Currently, global investors are increasingly interested in investing in assets that have a positive impact on the environment. Therefore, in addition to cost savings, greenhouse gas inventories also present opportunities for businesses to access numerous investment funds, particularly green funds.

 

Conducting a greenhouse gas inventory opens up opportunities for businesses to access green financing

 

Eligible to Participate in the Carbon Credit Market  

The carbon credit market serves as a platform where countries with surplus (or deficit) emission allowances can engage in the exchange and trading of these allowances with nations that emit less (or more) than their committed targets. Through the process of greenhouse gas inventory, businesses are fully qualified to partake in the trading of carbon credits.

 

Who needs to conduct greenhouse gas inventories?

Decision No. 13/2024/QD-TTg specifies six sectors that must implement greenhouse gas inventory, including:

• (1) Waste: The biological treatment of solid waste; the treatment and discharge of wastewater; landfill disposal of solid waste; incineration and open burning of waste.

• (2) Agriculture, forestry, and land use: Cultivation; livestock; forestry and changes in land use; energy consumption in agriculture, aquaculture, and forestry; other emission sources related to the industrial sector

• (3) Transportation: Energy consumption in transportation activities

• (4) Industrial processes: Metallurgy; chemical production; the use of substitutes for ozone-depleting substances; electronics industry; the manufacture and application of products in other industrial sectors.

• (5) Construction: Energy use in the construction sector; industrial processes for the production of building materials

• (6) Energy: Oil, gas, and coal extraction; energy production in the industry; energy consumption across sectors such as trade, industry, services, and residential

 

Moreover, establishments not subject to the specified regulations are encouraged to reduce greenhouse gas emissions in accordance with their conditions and operations. According to Clause 4, Article 11 of Decree 06/2022/ND-CP, the frequency of greenhouse gas inventory reporting is twice a year, with the deadline before March 31, 2025.

 

Who needs to conduct greenhouse gas inventories?

 

Guidelines for Reporting Greenhouse Gas Inventory at the Facility Level

According to Circular 17/2022/TT-BTNMT, the greenhouse gas inventory report at the local level is conducted through specific steps as follows:

Step 1: Determine the method for greenhouse gas inventory  

To identify an appropriate method for the greenhouse gas inventory tailored to each sector, we refer to the National Greenhouse Gas Inventory Guidelines, specifically the 2006 version (IPCC 2006) and the 2019 edition (IPCC 2019).  

 

Step 2: Select the emission factor  

The emission factor will be selected in accordance with the specific sector in which the enterprise operates. Depending on the sector's activities, we will choose the appropriate emission factor as outlined in the catalog published by the Ministry of Natural Resources and Environment.

 

Step 3: Collecting Data on Sectoral Inventory Activities  

The business undertakes the collection of data through information derived from the IPCC guidance documents of 2019 and 2006. Additionally, the enterprise may reutilize data sourced from the General Statistics Office, or other authoritative agencies, as well as Appendix I.2 of Circular 17/2022/TT-BTNM. Specifically:  

• Utilizing existing data: national statistics, international statistics, remote sensing, associations, universities, etc.

• Collaborating with relevant parties to gather additional adjusted data.  

• Modifying existing data.

• Creating new data: conducting measurements, utilizing census data, and working alongside the General Statistics Office to carry out new surveys.  

• .Employing alternative data.  

• Reassessing evaluations conducted by experts. 

•  Processing the collected data source.

 

Step 4: Emission Calculation  

The method for calculating emissions shall be based on the inventory approach established in Step 1. The inventory results will also be aggregated into forms, including operational data and global warming potential factors.

Step 5: Inventory Quality Assurance and Control  

• The accuracy and completeness of the data must be verified.  

• Identify and make necessary adjustments for inaccuracies and omissions in the report.  

• Conduct a review of the documentation and audit the archived texts

 

Step 6: Ensuring Inventory Quality  

The quality assurance process shall be conducted in accordance with the guidelines from IPCC 2006 and IPCC 2019, overseen by the relevant authorities.

 

Step 7: Assessing the Degree of Uncertainty in Inventory Results  

• Identify factors contributing to uncertainty, including data quality, emission factors, and calculation outcomes during the inventory process.  

• Compile the inventory table by specific sectors.

 

Step 8: Adjusting and Recalculating Greenhouse Gas Inventory Results  

Upon discovering discrepancies or updates in the quantitative methodology for greenhouse gas emissions, the enterprise will proceed to make adjustments and retrace the steps for recalculating the inventory results.

 

Step 9: Reporting Inventory Results  

Prepare the inventory report based on Form 04, Appendix II of Decree 06/2022/ND-CP.

 

Three essential considerations when conducting inventory and reporting greenhouse gas emissions:  

• Define the reporting recipients and the scope of the inventory: It is imperative for the enterprise to clearly identify the recipients of the report and the scope of the inventory in accordance with legal regulations.

• Maintain documentation to substantiate emissions: It is necessary to collect and store comprehensive records and data pertaining to emission-related activities throughout the production and business processes.  

• Document remedial actions taken: Measures implemented to rectify or mitigate emissions should be duly recorded in the greenhouse gas inventory report

Minmax Green - The organization supporting businesses in greenhouse gas inventory reporting

Conducting greenhouse gas inventories in accordance with regulations not only enables businesses to fulfill their legal obligations but also offers numerous strategic advantages. However, this process remains fraught with challenges, from establishing effective emission data collection and management systems to the costs associated with investment in technology and human resources.

Recognizing these challenges, Minmax Green provides professional greenhouse gas inventory consulting services, assisting businesses in effortlessly identifying emission sources and ensuring compliance with regulatory standards. Moreover, the Minmax Green team aids companies in optimizing their inventory processes, enhancing cost-saving potential, and bolstering competitive advantages in the global "greening" economy.

Notably, Minmax Green frequently conducts Greenhouse Gas Inventory Training Courses. Here, accompanied by a team of experienced experts in the field, Minmax Green imparts valuable knowledge and practical skills, empowering businesses to execute greenhouse gas inventory processes more effectively.

 

Course Information:

• Instructor: Expert Thuy Nguyen Hung

• Date: February 22, 2025

• Location:

- Address 1: 189 Nguyen Xi, Ward 26, Binh Thanh District, Ho Chi Minh City

- Address 2: 161-163 Tran Quoc Thao, Ward 9, District 3, Ho Chi Minh City

• Register now at: https://minmaxgreen.vn/trang-khoa-hoc 

 

Are you ready to commence the greenhouse gas inventory, enhancing your company's competitive edge in the sustainable green market? Join Minmax Green's GREENHOUSE GAS INVENTORY course to equip yourself with comprehensive knowledge and practical skills, ensuring your business complies with regulations and optimizes the greenhouse gas inventory process effectively. Contact us now through our website at https://minmaxgreen.vn/ or via hotline 0931 861 313 for the best consultation and support!