On June 9, 2025, the Government issued Decree No. 119/2025/ND-CP, amending and supplementing certain provisions of Decree No. 06/2022/ND-CP dated January 7, 2022, which regulates the reduction of greenhouse gas emissions and the protection of the ozone layer. This Decree will take effect from August 1, 2025.

Key highlights of the Decree include the following:

Scope of the Decree: The Decree expands its scope to cover not only individuals and organizations involved in developing the domestic carbon market but also those participating in the organization and development of the carbon market, as well as mechanisms for exchanging and offsetting carbon credits both domestically and internationally. In addition to large-scale emitters, entities participating in the carbon market, including financial institutions and intermediaries, are now included under this regulation.

Greenhouse Gas Inventory Reporting: Facilities subject to the Decree must submit biennial greenhouse gas inventory reports, covering the results of greenhouse gas inventories for the two consecutive years prior to the reporting year.

Greenhouse Gas Emission Reduction Reporting: Facilities listed under Decision No. 13/2024/QD-TTg, which mandates greenhouse gas inventories, are required to prepare annual greenhouse gas emission reduction reports for the year preceding the reporting period. These reports must be submitted to the relevant provincial People’s Committee by March 31, starting from 2027.

Allocation of Emission Quotas to Facilities: Decree No. 119/2025/ND-CP outlines a phased roadmap for quota allocation, covering the periods 2025–2026, 2027–2028, and 2029–2030, with an initial focus on thermal power plants, steel production facilities, and cement production facilities. The Ministry of Industry and Trade and the Ministry of Construction are tasked with updating the list of facilities eligible for quota allocation and the annual allocated quotas, which will be submitted to the Ministry of Agriculture and Environment as prescribed. The 2027–2028 phase will expand the sectors eligible for quota allocation, laying the groundwork for nationwide implementation in the 2029–2030 phase, aligning with the operational phase of the national carbon exchange, which is scheduled to commence in 2029.

Operation of the Carbon Exchange: Decree No. 119/2025/ND-CP provides a detailed roadmap for operating the carbon exchange in accordance with Decision No. 232/QD-TTg, which approves the Plan for the Establishment and Development of the Carbon Market in Vietnam in 2025 issued by the Prime Minister. The Decree establishes mechanisms for the exchange, loan, repayment, transfer, and offsetting of greenhouse gas emission quotas and carbon credits, as well as mechanisms for the domestic exchange and offsetting of carbon credits.

Notably, HCFC substances will be completely phased out by January 1, 2040. Methyl bromide may only be imported for disinfection and quarantine purposes. Additionally, the allocation of quotas for the production and import of controlled substances has been specified.

For the full text of the Decree, please refer to:
https://vanban.chinhphu.vn/?pageid=27160&docid=213875