Viet Nam’s legal framework for greenhouse gas (GHG) management during 2020–2025 has evolved alongside the development of a measurement, reporting and verification (MRV) system, sector-specific technical regulations, and market-based economic instruments, including emission fees, the carbon market, and green credit. An analysis by Nguyen Thanh Giao, Nguyen Thi Lanh, Nguyen Van Linh, and Ha Thao Nguyen highlights the importance of linking emissions data, technical standards, and financial mechanisms to incorporate climate change mitigation objectives into production and investment decisions while supporting the development of low-carbon technological solutions integrated with the circular economy model.
MRV provides the data foundation for sectoral GHG management
Viet Nam’s commitment to achieving Net Zero emissions by 2050 requires a shift in its approach to greenhouse gas management. This involves not only controlling emission sources but also establishing a reliable data system to monitor and assess emissions and determine responsibilities for emissions mitigation. These are among the key issues examined by Nguyen Thanh Giao and his colleagues in their study on integrating economic instruments and MRV systems into greenhouse gas management in Viet Nam.
According to the authors, the 2020 Law on Environmental Protection established the legal foundation for GHG emissions mitigation and carbon market development. This was followed by Decree No. 06/2022/ND-CP, which provides detailed regulations on GHG inventories and emissions mitigation and establishes the framework for a measurement, reporting and verification system. The legal framework was further supplemented and revised during 2024–2025, reflecting the gradual development of a more systematic management approach tailored to the practical requirements of individual sectors.
One notable development is the translation of the MRV framework into sector-specific technical guidelines, rather than applying a uniform methodology across all sectors. In industry and energy, Circular No. 38/2023/TT-BCT establishes technical requirements for measuring, reporting and verifying GHG emissions mitigation and conducting GHG inventories. The construction sector is covered by Circular No. 13/2024/TT-BXD; the transport sector follows Circular No. 63/2024/TT-BGTVT; and the livestock sector is addressed through Circular No. 26/2024/TT-BNNPTNT.
This sector-specific approach enables inventory methodologies to better reflect the emission characteristics of different production and business activities. For example, in livestock production, inventories focus on methane (CH₄) emissions from enteric fermentation and manure management. In transportation, emissions estimates are based on fuel consumption or distance traveled. In the energy and industrial sectors, monitoring energy consumption, production processes, and emissions per unit of output is important for assessing mitigation performance.
Another aspect emphasized by the authors is the technical benchmarking of domestic inventory methodologies against the 2006 IPCC Guidelines for National Greenhouse Gas Inventories developed by the Intergovernmental Panel on Climate Change (IPCC). The application of Tier 1 and Tier 2 estimation methods, together with the gradual adoption of country-specific emission factors published under Decision No. 2626/QD-BTNMT, helps improve the consistency of GHG inventory data and its relevance to national circumstances.
The scope of management has also expanded to include substances with high global warming potential, in addition to common greenhouse gases such as CO₂, CH₄, and N₂O. Decree No. 119/2025/ND-CP introduced additional provisions for the management and control of ozone-depleting substances and fluorinated gases, including hydrofluorocarbons (HFCs), with a phase-down schedule extending to 2045. Controlling these substances is important for fulfilling commitments to both ozone layer protection and climate change mitigation.
As the researchers’ analysis indicates, MRV is no longer merely an administrative reporting requirement; it is becoming an information foundation for the entire GHG management process. More comprehensive data and more consistent inventory methodologies provide a stronger basis for identifying emission sources, monitoring mitigation outcomes, and formulating appropriate policies.
Market-based economic instruments support GHG emissions mitigation
While the MRV system provides information for identifying and monitoring emissions, market-based economic instruments generate financial signals that influence corporate technology choices and investment decisions. This represents a notable development in Viet Nam’s approach to GHG management, which the study examines through three complementary policy instruments: emission fees, the carbon market, and green credit and green bonds.
First, Decree No. 153/2024/ND-CP on environmental protection fees for emissions establishes a fee structure comprising a fixed component applicable to emitting facilities and a variable component calculated according to the quantities of pollutants released, including dust, nitrogen oxides (NOx), sulfur oxides (SOx), and carbon monoxide (CO). This mechanism is intended to incorporate environmental costs into production activities, providing additional incentives for emitting facilities to improve production processes, switch input fuels, and invest in emission control technologies.
It is important to note that these fees are not a direct charge on greenhouse gas emissions such as CO₂. However, air pollution and GHG emissions share certain sources, particularly activities involving fossil fuel combustion. Consequently, measures to reduce dust and other air pollutants through the use of cleaner fuels or improved combustion efficiency can also generate indirect CO₂ emissions reductions. This illustrates the co-benefits approach to environmental management and climate change mitigation.
Another instrument with important long-term implications is the carbon market. Unlike a fee mechanism that establishes a predetermined charge, the carbon market operates by setting the total volume of emissions allowances, with allowance prices determined by supply and demand. This mechanism allows entities with emissions mitigation obligations to consider different compliance options in line with their operating conditions and costs.
According to the study, Viet Nam’s pilot carbon market began operating on June 29, 2026, marking an important implementation step in the development of an emissions allowance trading mechanism. Market operations require coordination among the authorities responsible for allowance management, the operator of the trading platform, and organizations providing payment services. As a result, reliable inventory data, transparency, and the ability to verify emissions quantities become increasingly important. This also explains why the MRV system serves as a foundation for carbon market operations: decisions on allowance allocation and trading must be supported by credible emissions data.
Alongside instruments that impose financial obligations, green credit and green bonds are intended to encourage investment in environmentally beneficial activities. Decision No. 21/2025/QD-TTg establishes environmental criteria and procedures for certifying investment projects eligible for inclusion in the green classification framework. It provides a basis for financial institutions to identify projects that meet environmental requirements when considering credit provision or green bond issuance.
Renewable energy, clean transportation, and waste treatment are among the sectors that may access these financial resources when they meet the relevant criteria. Establishing clear criteria and project certification procedures not only helps direct capital toward activities with environmental benefits but also helps reduce the risk of greenwashing when environmental claims are not adequately substantiated.
Overall, the three groups of economic instruments serve different functions but share the objectives of improving environmental management and reducing emissions. Emission fees create financial obligations for emission-generating activities; the carbon market establishes a mechanism for pricing emissions allowances; and green credit and green bonds expand access to capital for projects that meet environmental criteria. Their combined application creates a policy framework in which businesses have both incentives to mitigate emissions and greater access to financing for technological innovation.
National technical regulations link pollution control with climate mitigation
In addition to economic instruments, the development and improvement of national technical regulations constitute an important component of the GHG management system. These regulations not only establish environmental quality control requirements but also provide a technical basis for monitoring emission sources, guiding technology choices, and improving resource-use efficiency.
The study by Nguyen Thanh Giao and his colleagues notes that, in 2025, Viet Nam issued new national technical regulations on noise, vibration, and sediment quality through Circular No. 01/2025/TT-BNNMT. These regulations are relevant to the control of industrial, mining, construction, and water transport activities, while also contributing to a more comprehensive system for monitoring ambient environmental quality.
Another issue examined by the authors is the control of imported scrap for use as production materials. Circular No. 43/2024/TT-BTNMT establishes technical requirements for imported scrap, providing a legal framework for the use of recycled materials in manufacturing. From an emissions mitigation perspective, using metal scrap as a substitute for primary ores can reduce energy consumption in production processes, thereby limiting CO₂ emissions from fuel combustion and industrial chemical reactions.
In the transport sector, the MRV guidelines under Circular No. 63/2024/TT-BGTVT provide a basis for calculating emissions from road, maritime, and aviation activities. Standardized data collection and processing methodologies give regulatory authorities and businesses a more consistent basis for assessing emissions and considering options to improve fuel efficiency, transition to alternative vehicles, and use cleaner fuels.
Notably, the study also discusses the role of the national remote sensing image database system under Circular No. 41/2024/TT-BTNMT. By updating information on land-use changes and related developments, remote-sensing data support the monitoring of forest areas and changes in land use, while providing additional information for GHG inventories in the land use, land-use change and forestry (LULUCF) sector. This information is particularly valuable for monitoring changes that may not be fully identified through direct field inspections alone.
The relationship between technical regulations and economic instruments becomes clearer when considered in conjunction with the emission fee mechanism. Technical regulations establish the basis for determining environmental quality limits, while the fee mechanism incorporates the costs of emissions into corporate production decisions. When implemented in a coordinated manner, these two groups of instruments can encourage businesses to invest in emission treatment systems, improve production processes, and reduce pollutant emissions.
The value of this approach lies in its integration of pollution control objectives with climate change mitigation. A technological solution can simultaneously improve air quality, increase energy efficiency, and reduce GHG emissions. However, the extent of these contributions depends on the characteristics of emission sources, the technologies adopted, and the available inventory data, and therefore needs to be assessed using appropriate technical methods.
The circular economy expands opportunities for low-carbon solutions
One notable aspect of the study is its examination of GHG management in relation to the transition toward a circular economy. Under this approach, emissions mitigation can be achieved not only by controlling direct emission sources but also by changing how resources are extracted, used, and managed throughout the production cycle.
Extended producer responsibility (EPR), established under the 2020 Law on Environmental Protection and further specified in Decree No. 08/2022/ND-CP, is one of the policies examined in the study. Under this mechanism, manufacturers and importers are required to recycle products and packaging at prescribed rates. Returning materials such as plastics, paper, and metals to production processes, rather than disposing of or landfilling them, helps conserve resources, reduce waste, and decrease demand for virgin materials.
In industrial production, using scrap materials as substitutes for primary raw materials can conserve resources and reduce energy consumption compared with certain production processes based on newly extracted materials. Metal recycling, for example, can reduce the energy required for production compared with processing primary ores. This approach is relevant to emissions mitigation in the industrial processes and product use (IPPU) sector.
The authors also examine the potential for emissions mitigation through waste co-processing in cement kilns and thermal power plants. Replacing a portion of coal consumption with industrial waste or biomass provides an additional waste treatment option while reducing fossil fuel consumption. An important technical requirement in this process is to distinguish between the origins of carbon in fuels and input materials. Under the IPCC inventory methodology, CO₂ emissions from fossil-derived carbon are included in the national emissions total, while emissions from biogenic sources are treated as carbon-neutral in the accounting approach described in the study.
In the municipal solid waste sector, waste segregation at source is also considered an important step toward improving treatment efficiency and resource recovery. Circular No. 35/2024/TT-BTNMT provides for the classification of municipal solid waste into food waste, recyclable waste, and other waste. Separating organic waste facilitates the application of biological treatment methods, such as compost production or the use of biogas digesters to recover methane for electricity generation.
This approach has significant implications for reducing emissions from waste management because organic matter decomposing under landfill conditions can generate methane, a greenhouse gas with high global warming potential. When properly sorted and treated using appropriate methods, organic waste can become a resource for fertilizer production or energy generation rather than simply a material requiring disposal.
These analyses demonstrate that the circular economy creates additional opportunities for emissions mitigation across production and consumption activities. Material recycling, the use of waste to partially replace fossil fuels, and energy recovery from organic waste all demonstrate the potential to combine economic benefits with environmental objectives. Crucially, these solutions need to be supported by appropriate technical regulations, monitoring systems, and financial mechanisms to ensure effective implementation in practice.
Overall, a major contribution of the study by Nguyen Thanh Giao and his colleagues is its systematic examination of the interrelationships among the different components of greenhouse gas management in Viet Nam. The MRV system provides the data foundation; technical regulations establish control requirements; economic instruments generate financial signals; and the circular economy expands opportunities for applying low-carbon technological solutions. Rather than operating independently, these components can complement one another and form a policy foundation for GHG emissions mitigation.
The study primarily employs policy analysis and technical benchmarking against the 2006 IPCC Guidelines, providing an integrated perspective on the development of Viet Nam’s GHG management framework during 2020–2025. Further empirical data on business operations, compliance costs, and emissions mitigation would help quantify the effectiveness of policy mechanisms more clearly and provide an additional basis for linking the domestic carbon market with international markets.
As countries seek appropriate approaches to fulfilling their climate commitments, Viet Nam’s experience in linking emissions data management, economic instruments, and technical regulations offers a relevant perspective for consideration. This approach also provides a basis for connecting emissions mitigation objectives with technological innovation, resource-use efficiency, and sustainable economic growth.
Sources: This article is based on the study “Integrating economic instruments and MRV systems in greenhouse gas management in Viet Nam towards the Net Zero emission goal” by Nguyen Thanh Giao, Nguyen Thi Lanh, Nguyen Van Linh, Ha Thao Nguyen, published in the Science Journal of Agriculture and Environment, Issue 2, August 2026.
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