GHG emissions, particularly carbon dioxide (CO₂) released from human activities, have become a critical issue globally and in Vietnam. These emissions contribute to climate change, which affects not only the environment but also public health, economic stability, and overall quality of life. In Vietnam, a rapidly industrializing nation, understanding carbon emissions and their implications is essential for businesses, policymakers, and the general public. This article will explore what carbon emissions are, the current regulatory context in Vietnam, and how various stakeholders are responding.
What are carbon emissions?
Carbon emissions refer to the release of carbon compounds, primarily carbon dioxide (CO₂), into the atmosphere. CO₂ is a greenhouse gas (GHG) that traps heat from the sun, leading to global warming and climate change. These emissions mainly result from the combustion of fossil fuels like oil, coal, and natural gas for energy, transportation, and industrial processes. Vietnam's energy system is heavily reliant on coal, which contributes over 40% of the power supply, while hydropower and other renewables are responsible for over a third of the energy mix.
In the transportation sector, emissions stem from fuel combustion in vehicles—especially in road and air transport, which are crucial for Vietnam’s logistics and passenger movement. This reliance on carbon-intensive energy sources intensifies the importance of understanding and managing emissions to mitigate climate change impacts.
The importance of understanding carbon emissions
Awareness of carbon emissions and their impacts is essential, especially for countries like Vietnam which are among the world’s top five most vulnerable to climate change. High carbon emissions contribute to extreme weather events, sea-level rise, health issues, and food security risks. Vietnam frequently faces typhoons, floods, droughts, and landslides, endangering over 100 million people and numerous economic assets concentrated along its long, densely populated coastline. Addressing carbon emissions is crucial to safeguarding Vietnam's environment and economy, both of which are at high risk from the escalating effects of climate change.
Awareness among businesses and individuals is not only about reducing emissions but also about preparing for future regulatory changes and market expectations. With Vietnam committing to net-zero emissions by 2050 and actively participating in global climate initiatives, understanding carbon emissions has become more than an environmental concern—it is an economic and social imperative.
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Vietnam's current context on carbon emissions
Key statistics:
Vietnam has experienced rapid economic growth over recent decades, but this expansion has come with a steep environmental cost. The country ranks as the 17th largest GHG emitter globally, with emissions rising from approximately 300.4 MtCO₂e in 2020 to 344 MtCO₂e in 2022.
Key sectors driving these emissions include energy production, manufacturing, and transportation. Roughly 30% of the country's total GHG emissions come from the power sector—dominated by coal—while another 30% are from industry, and about 10% from transport.
Government policies:
Vietnam is implementing various policies to address emissions, including the National Strategy on Environmental Protection up to 2030, with a vision extending to 2050. Recent regulations under the Law on Environmental Protection (2020) mandate that large organizations and enterprises report and manage their emissions. By setting an ambitious goal of achieving net zero emissions by 2050, the government is increasing pressure on high-emission industries. This initiative aims to raise awareness and encourage organizations within these sectors to adopt sustainable practices, with transportation being among the key focus areas.
Market response:
Large corporations and FDI companies: Vietnam’s major corporations and foreign-invested enterprises are already aligning with government regulations by integrating emissions reduction into their operations and long-term ESG strategies. These organizations are voluntarily reporting emissions, adopting renewable energy sources, employing technology initiatives, and efficiently managing value chains. They are setting sustainability goals to meet regulatory requirements and the increasing expectations of investors, customers, and stakeholders.
SMEs and Local stakeholders: While facing less stringent emissions regulations than larger state-owned enterprises, small and medium-sized enterprises (SMEs) are gradually embracing sustainability concepts and environmental social responsibility. This shift is driven by evolving consumer demand for greener products and services, as well as increasing requirements from major supply chain and international partners. However, many SMEs prioritize immediate economic survival, delaying significant carbon emission reduction efforts until supportive policies, incentives, and potentially mandatory regulations are implemented by the government.
What’s next?
As Vietnam moves towards a sustainable future, one industry plays a pivotal role in reducing carbon emissions—transportation. In our next article, Vietnam's Transportation and Carbon Emissions: Challenges and Solutions, we’ll dive into how transportation emissions, especially those from logistics, impact Vietnam's overall carbon footprint. We’ll explore the unique challenges and opportunities within this sector, examining the response from key players and practical steps stakeholders can take to reduce their emissions. Join us as we uncover how Vietnam’s transportation industry is adapting to new sustainability demands and aligning with the nation climate goals.