HCMC - Greenhouse gas emission quotas will be allocated to thermal power, cement, and steel plants by December 31 this year, as part of Vietnam’s efforts to advance climate commitments.

The Government has issued Decree No. 119/2025/NĐ-CP, dated June 9, 2025, amending and supplementing several provisions of Decree No. 06/2022/NĐ-CP on greenhouse gas emission reduction and ozone layer protection. Under the new regulation, thermal power plants and facilities producing steel and cement – those required to conduct greenhouse gas inventories – will be assigned emission quotas during the 2025–2026 period. The Ministry of Agriculture and Environment will lead the pilot proposal process in coordination with the Ministry of Industry and Trade and the Ministry of Construction, submitting the total allowable emissions to the prime minister for approval. Quota allocations for each facility must be finalized by the end of 2025. From 2027 onward, relevant ministries and sectors will propose lists of facilities and annual emission quotas for the 2027-2028 and 2029-2030 periods. The deadline for submitting proposals is June 30 of the first year of each period. Once the total allowable emissions are approved by the prime minister, the Ministry of Agriculture and Environment will allocate quotas to individual facilities by October 31 of the same year. Emission quotas will be determined based on emission intensity per unit of product, industry growth targets, and each facility’s potential and capacity to reduce emissions. Facilities will be allowed to trade quotas and carbon credits on the national carbon market. The decree also revises regulations on the trading, borrowing, transferring, and surrendering of emission quotas. Facilities are required to surrender an amount of quotas at least equal to their verified emissions, minus any offset with carbon credits, by December 31 of the year following each compliance period. Those failing to meet this obligation will face penalties and have their quotas deducted in the next period. The decree will take effect on August 1.