Can enterprises in different sectors use sector-specific emission factors?

Not only is it permitted, but under current Vietnamese regulations, enterprises must apply the correct sector-specific emission factors that correspond to their production and business activities. This practice is crucial for ensuring the accuracy, consistency, and legal validity of a greenhouse gas (GHG) inventory.

Clear legal basis

The primary legal document governing this is Decision No. 2626/QD-BTNMT38, issued by the Ministry of Agriculture and Environment on October 10, 2022. This decision provides a detailed list of national emission factors categorized by sector, sub-sector, and specific activity in its appendices.

Enterprises are responsible for referencing this decision and applying the precise factors that match their actual operations. Using generic factors or factors from other sectors is not permissible when a specific factor for an activity is available.

Illustrative examples

Logistics sector

A transportation company using diesel fuel for its fleet must apply the specific emission factor listed under the "Road Transport" category in Appendix I of the Decision.

Cement sector

A cement manufacturer must account for multiple emission sources. This includes applying the factor for coal combustion (from Appendix I) as well as the unique factor for "emissions from the clinker production process" (from Appendix II), which reflects the specific chemical reactions inherent to that industry.

Agriculture sector

Emission factors are provided for distinct activities such as "livestock farming," "rice cultivation," and "agricultural soil management (fertilizer use)," as detailed in Appendix III.

Key considerations for application

Applying the correct sector-specific emission factors is a critical consideration for any enterprise's climate strategy for several key reasons. First and foremost, it is a mandatory requirement for ensuring legal compliance when submitting GHG inventories to Vietnamese regulatory authorities. Beyond domestic regulations, using accurate factors significantly increases the credibility of an enterprise's emissions data, which is essential when seeking to generate carbon credits, applying for green financing, or meeting the stringent disclosure requirements of international partners. From a strategic standpoint, this precision also allows companies to accurately identify the true sources of their emissions, enabling them to develop more effective and targeted reduction initiatives.

References

38. Ministry of Agriculture and Environment. (2022). Decision No. 2626/QĐ-BTNMT (2022) announcing the list of emission factors for GHG inventory. Thư viện pháp luật. https://thuvienphapluat.vn/van-ban/Tai-nguyen-Moi-truong/Quyet-dinh-2626-QD-BTNMT-2022-cong-bo-he-so-phat-thai-phuc-vu-kiem-ke-khi-nha-kinh-532253.aspx