Greenhouse Gas Inventory – Meeting Emission Reductions Requirements and Reporting

Greenhouse gas inventories are becoming increasingly important in the context of the global climate change challenges. For sustainable development, conducting greenhouse gas inventories is an indispensable activity for businesses that want to contribute to emissions reduction efforts while complying with increasingly stringent legal regulations.

What is greenhouse gas inventory?

Greenhouse gas inventory is the process of collecting, analyzing and synthesizing data related to the amount of greenhouse gases (GHG) emitted by the activities of an organization or business over a certain period of time. This process aims to clearly identify the main emission sources such as CO2, CH4, N2O, fluorocarbons, and other substances that have the potential to cause the greenhouse effect. This activity is carried out at the project, business, organization or national level. The main purpose of greenhouse gas inventory is not simply measurement, but also includes analyzing factors affecting the amount of emissions generated, thereby helping businesses identify activities that can be optimized or reduced, contributing to reducing emissions.

When do businesses need to inventory greenhouse gases?

Currently, many countries have issued regulations requiring enterprises to conduct periodic greenhouse gas inventories according to certain standards. In Vietnam, to conduct greenhouse gas inventories, enterprises need to comply with legal regulations such as the Law on Environmental Protection 2020, Decree 06/2022/ND-CP and Decision 13/2024/QD-TTg. These documents provide a clear legal framework for conducting greenhouse gas inventories, ensuring legality and accuracy in reporting. According to regulations, from January 1, 2022, the implementation of greenhouse gas inventories, the construction and maintenance of a greenhouse gas emission database system must send periodic inspection results every 2 years and prepare a report on greenhouse gas emissions levels to the Ministry of Natural Resources and Environment, ministries, ministerial-level agencies; and relevant provincial People’s Committees before December 31 of each reporting period. In addition, in some special cases such as when an enterprise has an expansion project, changes production activities or participates in international environmental certification programs, the work inventory regulations will require businesses to conduct greenhouse gas inventories periodically, possibly more than once a year, for the purpose of demonstrating or reporting on the status. This helps businesses proactively update data, preparing for the next steps in their sustainable development strategy.

Why is greenhouse gas inventory important?

In the context of the world moving towards a low-emission economy, greenhouse gas inventory is not only a legal obligation but also a competitive advantage for businesses. The global trend of reducing greenhouse gas emissions is promoted by international commitments and environmental certification standards such as ISO 14064 or GHG Protocol. Businesses, especially in the fields of industry, energy, transportation and construction, must have a strategic view on greenhouse gas inventory to meet the requirements of the international market, expand cooperation opportunities, participate in green projects and receive financial support from international organizations. From there, greenhouse gas inventory becomes a tool to help businesses not only report successful emission reductions but also improve access to green investment capital, manage risks and enhance brand reputation.

Which businesses need to inventory greenhouse gases?

Businesses with emissions of 3,000 tonnes of CO2 equivalent per year or more are often recommended or required to conduct greenhouse gas inventories to ensure regulatory compliance and sustainable development. Specifically, businesses operating in 6 areas:

• Heavy industry such as steel, cement, chemical and electronics production, which generate large amounts of emissions during production and machinery operations. These businesses are characterized by high energy consumption activities, with little ability to reduce emissions in the short term without regular inventory.
• Energy sector: Power plants, especially those using fossil fuels such as coal, oil, and gas. Greenhouse gas inventories help determine the amount of emissions from power generation activities and develop appropriate mitigation strategies, switching to renewable energy.
• Transport industry: Transporting goods and passengers by large vehicles or multiple private vehicles can cause significant emissions. Managing and accounting for emissions helps to optimize operations and minimize environmental impacts.
• Construction and real estate industry: Urban development projects, high-rise buildings, and construction infrastructure projects all need to monitor emissions during construction and operation to demonstrate community responsibility.
• Agriculture and food processing sector: Large-scale agricultural activities, livestock and processing, also contribute significantly to overall emissions. Therefore, businesses in this sector should also conduct greenhouse gas inventories to be transparent about their environmental impacts.
• Waste management sector: Waste treatment plants, biogas plants or waste sorting and recycling systems that aim to reduce emissions from waste treatment activities all need to conduct gas inventories.

Benefits of businesses conducting greenhouse gas inventories

Perform greenhouse gas inventory offers many benefits that go beyond meeting legal requirements:

• Basis for developing emission reduction and operational optimization strategies: Businesses have accurate data to build appropriate emission reduction strategies; thereby optimizing production, helping to save energy and material costs.
• Enhance reputation and competitiveness: Increase credibility with partners, customers and the community, expand markets and increase global competitiveness.
• Financial opportunities and international certification: Easily gain the trust of international certification organizations, opening up opportunities to participate in green projects and receive financial support from international organizations/sustainable development funding programs.
• Proactively manage risk and legal compliance: Businesses are proactive in dealing with legal risks, avoiding penalties or reputational damage due to non-compliance with environmental protection regulations.
• Building long-term strategies and managing climate risks: Create conditions for businesses to build strategies for sustainable development, improve their ability to manage risks related to climate change and aim to reduce global emissions.

Conclusion 

Greenhouse gas inventory is not just a simple activity of measuring emissions, but also a foundation for businesses to demonstrate responsibility to the environment, comply with legal regulations and enhance competitive reputation. Businesses operating in fields with large environmental impacts need to have a clear awareness of the outstanding benefits that the inventory process brings, from reducing operating costs, expanding markets to contributing to global efforts to limit climate change. Let’s start the journey of greenhouse gas inventory towards sustainable development and long-term success.

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