07 Apr Vietnam Sets Carbon Emission Cap on Companies
Vietnam is investigating the maximum amount of greenhouse gas emissions for manufacturers under its cap-and-trade scheme, as reported by Nikkei Asia on April 6. The country is bearing an increasing carbon emission burden as many multinational groups such as Panasonic [6752:JP] and Nestle [NESN:SW] relocate their coal and gas plants to Vietnam. The government is considering imposing limitations on companies’ carbon emissions and penalties on those who go over their quota.
In January, the Vietnamese government proposed a bill that lays out a plan for a domestic carbon market. Before launching an official carbon trading market in 2028, Vietnam plans to start a pilot one in 2025, covering sectors such as energy, transportation, waste, land use, industrial processes, and construction. By 2027, authorities will establish regulations on topics like carbon credit management, greenhouse gas emissions, and carbon credit quota trading. This year, Hanoi released a list of 1,912 companies, requesting them to assess their carbon footprints and develop a carbon reduction plan. In terms of foreign emitters in Vietnam, meantime, are seeking ways to comply with the carbon trading system. Nestle, for example, converts coffee waste into biofuel to achieve net-zero emissions by 2050.