ITVC Global's greenhouse gas inventory services in Ho Chi Minh City

1. What are greenhouse gases?

Greenhouse gases are gases in the atmosphere that can absorb and emit thermal radiation from the sun, contributing to an increase in global temperatures. Common greenhouse gases include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and halocarbon compounds. They arise from a variety of sources, including industry, transport, agriculture and people's daily activities, particularly in growing urban areas such as Ho Chi Minh City.

2. Adverse effects of greenhouse gases

Greenhouse gases are a principal cause of global warming, one of the greatest challenges facing humanity. As their concentration in the atmosphere increases, they retain more heat, leading to:

• Climate change: increasing the Earth's average temperature and causing extreme weather events such as severe storms, droughts, floods and heatwaves.
• Sea-level rise: melting polar ice and the thermal expansion of seawater threaten coastal areas and major cities such as Ho Chi Minh City.
• Health impacts: a range of health problems, including respiratory and cardiovascular diseases and increased mortality due to high temperatures.
• Economic losses: climate-related natural disasters can cause serious damage to property and infrastructure and reduce agricultural output.

3. Legal requirements for greenhouse gas inventories

To reduce the adverse impacts of greenhouse gases, many countries have introduced regulations and legal requirements for greenhouse gas inventories. In Vietnam, including Ho Chi Minh City, Decree No. 06/2022/ND-CP sets out detailed provisions on managing greenhouse gas emissions and inventories in industry, transport, energy and agriculture, and has been adopted and implemented.

Businesses and organizations with high greenhouse gas emissions must conduct inventories and report their emissions annually. Greenhouse gas inventory reports need to follow international standards such as ISO 14064-1 or the GHG Protocol to ensure transparency, accuracy and comparability.

Roadmap for complying with greenhouse gas legislation

4. Organizations required to conduct greenhouse gas inventories

Under legal requirements, the following organizations in Ho Chi Minh City and across Vietnam need to conduct greenhouse gas inventories:

• Energy businesses: including power plants, oil and gas production facilities and energy service companies in Ho Chi Minh City.
• Heavy industry: including steel, cement, chemical production and other industries with high greenhouse gas emissions in Ho Chi Minh City.
• Transport: air, road and water transport companies must inventory the emissions from their transport activities in Ho Chi Minh City.
• Agriculture and food processing: including livestock farms, food processing plants and other agricultural organizations in Ho Chi Minh City.
• Other organizations: large commercial buildings, schools, hospitals and government agencies in Ho Chi Minh City also need to conduct greenhouse gas inventories.

5. The greenhouse gas inventory process in Ho Chi Minh City

ITVC Global carries out greenhouse gas inventories in Ho Chi Minh City in accordance with international standards to ensure accurate, reliable results. The process includes the following steps:

Step 1: Define the inventory scope

ITVC Global helps businesses define their greenhouse gas inventory scope, including direct and indirect emission sources in the supply chain.

Step 2: Collect data

Data on energy consumption, raw materials and activities related to greenhouse gas emissions are collected and analyzed in detail.

Step 3: Calculate greenhouse gas emissions

Using accurate calculation methods and tools, ITVC Global determines the greenhouse gas emissions arising from the business's activities.

Step 4: Prepare the greenhouse gas inventory report

The report is prepared in accordance with international standards, providing a comprehensive view of the business's emissions and recommendations for reducing them.

Step 5: Submit and disclose the report

ITVC Global supports businesses in submitting greenhouse gas inventory reports to the regulatory authorities and disclosing the results as required by law.

6. Carbon credits

6.1. What are carbon credits?

Carbon credits are units used in greenhouse gas emission reduction programmes. Each credit represents the reduction or removal of one tonne of CO2 or other greenhouse gases. These credits can be traded in the market, helping businesses in Ho Chi Minh City meet emission reduction objectives by investing in reduction projects or purchasing credits from other organizations.

6.2. Benefits of carbon credits

Using carbon credits offers a number of benefits for businesses in Ho Chi Minh City and across Vietnam, including:

• Legal compliance: greenhouse gas credits help businesses comply with legal emission reduction requirements, particularly in industries with high emissions.
• Enhanced corporate reputation: businesses can demonstrate their commitment to environmental protection and sustainable development through the use of carbon credits.
• Cost optimization: instead of directly investing in internal emission reduction solutions, businesses can purchase credits to achieve their environmental objectives more cost-effectively.
• Support for green projects: carbon credit trading encourages renewable energy projects and other environmental initiatives.

6.3. The carbon credit process

ITVC Global provides services to help businesses in Ho Chi Minh City trade and use carbon credits, including:

• Strategic consulting: identifying the business's credit needs and developing an effective trading strategy.
• Credit due diligence: assessing and selecting reputable projects that supply credits, ensuring transparency and alignment with international standards.
• Credit trading: supporting businesses in international carbon credit transactions to help them achieve their stated emission objectives.
• Reporting and compliance: helping businesses report their use of carbon credits in accordance with legislation and international standards.

7. Points to consider when conducting a greenhouse gas inventory in Ho Chi Minh City

For a smooth and accurate greenhouse gas inventory process, businesses should consider the following:

• Choose an appropriate inventory scope: clearly identify the emission sources to be inventoried, including both direct and indirect emissions.
• Collect complete and accurate data: gather comprehensive, accurate information on energy consumption, production activities and other relevant factors.
• Use the correct calculation methods: apply methods consistent with international standards to ensure accurate inventory results.
• Comply with legal requirements: conduct greenhouse gas inventories in accordance with current legislation to avoid legal risks.

8. Completed projects:

Greenhouse gas inventory at PHONG PHU CORPORATION

Address: 48 Tang Nhon Phu Street, Quarter 3, Tang Nhon Phu B Ward, Thu Duc City,  Ho Chi Minh City, Vietnam. 

Greenhouse gas inventory at DOOSAN ENERBILITY VIETNAM CO., LTD.

Address: Dung Quat Economic Zone, Binh Thuan Commune, Binh Son District, Quang Ngai Province.

Greenhouse gas inventory at Nitori Vietnam Export Processing Enterprise — Ba Ria–Vung Tau Branch

Address: N2 Road, Lot G, Phu My 3 Industrial Park, Phuoc Hoa Ward, Phu My Town, Ba Ria–Vung Tau Province, Vietnam.

Greenhouse gas inventory at My Tho Urban Works One Member Company Limited

Address: 12 Huynh Tinh Cua Street, My Tho Ward, Dong Thap Province.

Greenhouse gas inventory at VIET PHAT PLASTIC PACKAGING ONE MEMBER COMPANY LIMITED

Address: Road No. 4, Phu Bai Industrial Park, Phu Bai Ward, Huong Thuy Town, Thua Thien Hue Province, Vietnam.