Greenhouse gas emission reduction – building a strategy toward sustainable development

The world is facing major challenges related to climate change. Viet Nam’s commitment to achieving net-zero emissions by 2050 transforms these challenges into an imperative for action, particularly for sectors with high emission levels. Accordingly, greenhouse gas (GHG) emission reduction is no longer an optional “green” initiative, but has become a mandatory requirement. Developing a clear and scientifically grounded GHG emission reduction roadmap not only supports legal compliance, but also enables enterprises to optimize operations, improve performance, and progress steadily toward sustainable development.

What are greenhouse gases? What is greenhouse gas emission reduction?

Greenhouse gases are gases present in the atmosphere, both natural and anthropogenic, such as CO₂, CH₄, N₂O, NF₃, etc., which absorb and emit thermal radiation, causing the Earth to warm. Greenhouse gas emissions refer to the release of these gases into the atmosphere, arising from activities such as fossil fuel combustion, manufacturing and industrial operations, extraction activities, or energy use such as electricity and heat consumption. Increased concentrations of greenhouse gases are the primary cause of global warming and climate change.

Greenhouse gas emission reduction focuses on the efficient use of resources and the implementation of measures and strategies to reduce the amount of greenhouse gases released into the atmosphere during production, consumption, and daily activities. This process not only reduces environmental pressure but also contributes to improved quality of life, moving toward a sustainable future for both the planet and humanity.

Importance of developing a greenhouse gas emission reduction strategy

Developing a greenhouse gas emission reduction strategy is no longer optional, but has become a mandatory requirement and a strategic opportunity for Vietnamese enterprises to develop. Enterprises that proactively comply with national regulations such as the Law on Environmental Protection and Decree No. 06/2022/ND-CP on GHG inventory can reduce regulatory intervention and prepare for increasingly stringent environmental policies in the future. Establishing an emission reduction roadmap represents strategic preparation to leverage opportunities from the domestic carbon market being developed under Decree No. 119/2025/ND-CP. Enterprises that achieve emission reductions more effectively than the benchmarks issued by the Ministry of Natural Resources and Environment may have surplus allowances available for trading on the carbon credit exchange, generating additional revenue and financing further emission reduction activities.

Which enterprises need to develop a greenhouse gas emission reduction roadmap?

The development of a greenhouse gas emission reduction roadmap is increasingly becoming a mandatory requirement and a sustainable development trend for many enterprises. Specifically:

Enterprises subject to mandatory greenhouse gas inventory:

  • Enterprises with annual greenhouse gas emissions of 3,000 tonnes of CO₂ equivalent or more, or with annual energy consumption of 1,000 tonnes of oil equivalent or more, operating in specific sectors such as energy, materials manufacturing, construction, transport, agriculture, etc.

Enterprises in high-emission sectors by industry: sectors with high emission shares and significant emission reduction potential, such as:

  • Energy sector (transition to renewable energy).
  • Heavy industry and manufacturing (steel, cement, chemicals, plastics, textiles, etc.).
  • Transport (vehicle transition, logistics optimization).
  • Agriculture and livestock farming (application of sustainable cultivation and husbandry models).

Enterprises required to meet “green” standards and international integration requirements:

  • Enterprises with export products, particularly to markets with carbon pricing mechanisms (such as the CBAM mechanism) or subject to environmental, social, and governance (ESG) requirements from investors, partners, and customers.

Greenhouse gas emission reduction: benefits for sustainable business development

Developing a greenhouse gas emission reduction roadmap is a foundation for sustainable development and provides multiple benefits to enterprises:

  • Process optimization: Inventory and emission assessment activities help enterprises identify resource inefficiencies and heat losses, thereby optimizing production processes and improving overall efficiency.
  • Enhanced reputation and brand value: “Green” production activities support the development of a positive organizational image, attract customers, and strengthen customer loyalty.
  • Investment attraction and access to capital: Investors are increasingly focused on enterprises with commitments to environmental, social, and governance (ESG) factors. Emission reduction supports access to investment and green finance.
  • Regulatory compliance: Emission reduction supports compliance with increasingly stringent environmental regulations, reduces future legal risks, and enables participation in the carbon credit market.
  • Promotion of innovation and operational efficiency: Emission reduction activities encourage technological innovation, process improvement, and enhanced overall operational efficiency.
  • Increased attractiveness for talent and retention: Many skilled workers seek employment with organizations demonstrating social and environmental responsibility. A sustainable development strategy can support talent attraction and retention.
  • Creation of new market opportunities: Enterprises may develop new products, services, and business models based on sustainability foundations, thereby opening potential new market opportunities.

Conclusion

Implementing a greenhouse gas emission reduction strategy is a strategic task for Vietnamese enterprises, serving both as a mandatory legal requirement and as an opportunity to transform business models and achieve sustainable competitive advantage. Initiating the development of a GHG emission reduction roadmap at present represents effective preparation for a competitive, environmentally responsible, and sustainable future for enterprises.