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Detailed Guide for Greenhouse Gas Inventory for Businesses

Jul 25, 2024

Conducting a greenhouse gas (GHG) inventory is mandatory for many businesses in Vietnam to assess the amount of greenhouse gases emitted into the environment. Implementing the inventory not only helps businesses comply with the law but also serves as a basis for developing emission reduction plans, contributing to environmental protection and sustainable development.

1.Basic Concepts

Greenhouse Gases (GHGs): These are gases in the atmosphere that absorb infrared radiation from the sun, causing the greenhouse effect and increasing the earth's temperature.

Greenhouse Gas Inventory: According to Government Decree 06/2022, a greenhouse gas inventory involves collecting information and data on sources of GHG emissions, calculating the amount of GHG emissions and absorption within a defined scope and for a specific year, following the methods and procedures issued by competent authorities.

Emission Factor: This is the amount of GHGs emitted per unit of production or consumption of a certain product or service.

2.Entities Required to Conduct Inventory According to Government Decree

According to Decree 06/2022/NĐ-CP, production and business establishments must conduct a GHG inventory if they meet one of the following criteria:

  • Emission Level: 3,000 tons of CO2e/year or more.
  • Energy Consumption: Thermal power plants, industrial production facilities, freight transport companies, and commercial buildings with total energy consumption of 1,000 tons of oil equivalent (TOE) or more.
  • Waste Treatment: Solid waste treatment facilities with an operating capacity of 65,000 tons/year or more.

Based on this classification, the government has announced a list of 1,912 establishments required to conduct a GHG inventory according to Decision No. 01/2022/QĐ-TTg. The detailed list of establishments required to conduct the inventory is provided.

The total amount of business who have to do GHG inventory.

Among the 1,912 businesses required to conduct a GHG inventory, the largest number falls under the management of the Ministry of Industry and Trade, with 1,612 businesses. This ministry covers a wide range of industries, including energy production and various manufacturing sectors, excluding cement production, which falls under the Ministry of Construction.

3.Requirements for Conducting Greenhouse Gas Inventory According to Regulations

According to Decree 06/2022/NĐ-CP, GHG inventory activities must meet the following requirements:

- The inventory method must follow the guidelines of the Intergovernmental Panel on Climate Change (IPCC).

- Activity data for the GHG inventory must ensure continuity, accuracy, reliability, and be verifiable, comparable, and assessable.

- GHG inventory reports must include full information on the inventory methods, activity data, emission factors applied, and inventory results.

- Verification of GHG inventory results must follow the validation procedures issued by the Ministry of Natural Resources and Environment, ensuring consistency and reliability.

- Information on national and sectoral GHG inventory results must be published on the official websites of state management agencies on climate change and related sectors.

4. Overview of the GHG Inventory Process for Production and Energy Enterprises

Step 1: Determine the scope of the GHG inventory and identify the emission sources within the establishment's management

- Direct Emission Sources: Emissions that an organization or business generates during daily operations or production. These are emissions that the organization directly controls and typically records in detail (e.g., fuel consumption, waste).

- Indirect Emission Sources: Emissions from the production of energy that the organization uses, including emissions from electricity, fuel, or other energy sources consumed by the organization (e.g., purchased electricity).

Step 2: Collect activity data for the GHG inventory

- Activity Data: Amount of fuel consumed, electricity used, production output, etc.

- Emission Factors: Select appropriate emission factors for each type of emission source and production technology. Use emission factor databases provided by the IPCC or state management agencies.

Step 3: Select emission factors for the establishment

Choose emission factors that match the current technology and production processes, categorized into three tiers:

  • Tier 1: Statistical data according to IPCC 2006 guidelines.
  • Tier 2: Specific emission factors for Vietnam published by the Ministry of Natural Resources and Environment.
  • Tier 3 - Activity Data: Detailed emission factors from the establishment itself.

Step 4: Calculate GHG emissions for the inventory

Using the collected information, calculate emissions based on the following formula provided by the Ministry of Industry and Trade:

GHGi=ADi​×EFi

Where:

  • i is the type of GHG.
  • GHGi is the amount of GHG emissions (tons).
  • ADi is the activity data for GHG i.
  • EFi is the emission factor for GHG i.

Step 5: Quality control of the GHG inventory

Check the processes, activities, and variables during the inventory, such as responsible personnel, equipment, and emission sources.

Step 6: Evaluate the uncertainty of the GHG inventory

Conduct uncertainty assessments according to the IPCC 2019 guidelines to ensure:

  • Completeness of the report.
  • Real-world relevance of the model and inventory methods.
  • Adequacy of calculation data.
  • Representativeness of data.
  • Anomalies in data.
  • Lack of transparency and scope errors.

Step 7: Recalculate GHG inventory results

This step is unnecessary for establishments conducting their first GHG inventory as it involves recalculating previous inventory results when there are changes in methods and scope.

Step 8: Prepare the GHG inventory report

The final step involves preparing the establishment-level GHG inventory report according to Form No. 06, Appendix II of Decree No. 06/2022/NĐ-CP, and submitting it to the competent authorities if required.

Engaging Experts for Greenhouse Gas Inventory

Establishments should involve experts with the necessary expertise and experience in similar projects, especially those with the same production models and activities, to conduct the GHG inventory.

5.Simplifying the GHG Inventory Process and Green Transition with Giant Barb

Understanding the challenges of conducting a GHG inventory and transitioning to green practices, Giant Barb provides comprehensive solutions and partners with businesses for sustainable development:

  • Saving Time and Costs: Our team of experts will handle the entire inventory process, from data collection and calculation to reporting, allowing businesses to focus on their core activities.
  • Ensuring Accuracy and Efficiency: With extensive experience and in-depth knowledge, we commit to providing accurate inventory results that meet all legal requirements.
  • Developing Green Transition Roadmaps: In addition to the inventory, Giant Barb partners with businesses to develop effective emission reduction plans aimed at sustainable development goals.
  • Accessing Advanced Technologies and Solutions: We connect businesses with the latest technologies and solutions in emission reduction, optimizing production efficiency and minimizing costs.

Start your green transition journey with Giant Barb by conducting a greenhouse gas inventory today!

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