Mr. Luong Quang Huy, Head of the Greenhouse Gas Emissions Management and Ozone Layer Protection Division at the Department of Climate Change under the Ministry of Agriculture and Environment, spoke with Vietnam Economic Times / VnEconomy about Vietnam’s pathway to achieving its COP26 net-zero commitment by 2050.

Could you tell
us about the results Vietnam has achieved in implementing its international commitment
to greenhouse gas (GHG) mitigation towards meeting the 2050 net-zero target?

Vietnam is among
the countries most severely affected by climate change. Extreme weather events have
become more frequent in recent years, directly and seriously impacting all aspects
of the country’s socio-economic life.

Recognizing the
severe challenges that climate change poses to sustainable development, countries
made strong commitments toward the 1.5°C goal under the Paris Agreement at COP21,
and pledged to achieve net-zero emissions by 2050 at COP26.

Responding to climate
change is a matter of special significance and one of the core, cross-cutting tasks
throughout the country’s development process, requiring the engagement of the entire
political system and society.

To implement Vietnam’s
commitments at COP26, the Prime Minister established the National Steering Committee
for implementing Vietnam’s COP26 commitments, chaired by the Prime Minister, and
approved the implementation scheme.

He also issued a
number of important strategies and plans, including Decision No. 888/QD-TTg approving
the Scheme on tasks and solutions to implement the outcomes of COP26; and Decision
No. 896/QD-TTg approving the National Climate Change Strategy to 2050.

On that basis, the
Department of Climate Change at the Ministry of Agriculture and Environment, in
coordination with relevant ministries and sectors, has developed GHG mitigation
and climate adaptation plans aligned with the 2050 net-zero commitment.

Many concrete programs
and projects have been implemented in practice, including renewable energy development
projects, forest carbon absorption projects, GHG mitigation initiatives in agriculture,
and sustainable, climate-adaptive development projects in the Mekong Delta. Banks
and enterprises have actively joined the government in fulfilling international
commitments.

In recent years,
the Department of Climate Change, together with ministries and sectors, has organized
hundreds of workshops to communicate with and guide enterprises on conducting GHG
inventories and understanding the benefits of green transition and emission reductions.

The business community
plays a particularly important role in implementing GHG mitigation. How would you
assess their capacity and level of engagement in contributing to national emission
reduction goals?

The implementation
of GHG mitigation and green transition solutions is a strong global trend. It is
also a mandatory requirement for the goods, products, and services of Vietnamese
enterprises that want to participate in global markets, especially markets with
strict green standards such as the EU.

While this poses
major challenges, it also offers new development opportunities, helping enterprises
enhance competitiveness.

Government regulations,
together with market-driven green-standard requirements, exert both pressure and
motivation for enterprises to transform and comply.

Based on this, we
have accelerated the implementation of legal regulations and emission reduction
goals while providing orientations to support enterprises in transitioning, first
focusing on energy-intensive industries such as thermal power, steel, and cement,
which are also the sectors piloting GHG allowance allocation.

With market trends
and volatile energy prices, enterprises increasingly recognize that transforming
production technologies and adopting alternative energy sources, such as biomass
or waste-to-energy, can offer cost advantages and economic benefits.

In practice, enterprises
have already implemented technology-based solutions within current constraints,
achieving good results. However, beyond a certain point, these solutions will no
longer bring further improvement and will require complete technology upgrades.

Technologies are
available, but the biggest challenge now is mobilizing financial resources for enterprises
to invest in new technologies.

At this point, enterprises
clearly understand the economic and market-driven imperative for green transition.
Vietnam has also established a relatively complete legal framework. What enterprises
need most now is stronger incentives for fundamental change.

In your view, what
additional drivers are needed to accelerate and realize green and sustainable development
policies in Vietnam?

The government needs
support policies to stimulate the financial, banking, and credit industries, creating
additional incentives for enterprises to change. This will result in long-term benefits,
fundamentally transforming corporate culture in line with the green transition.

For example, in
steel production, four major technologies exist. The blast-furnace / basic oxygen
furnace (BOF) route consumes large amounts of fossil fuel. Switching to electric-arc
furnaces (EAF) or induction furnaces (IF) can reduce emissions to below 20 per cent
of BOF levels, while reductions can be even greater with IFs. Today, steel manufacturers
are gradually adopting these new technologies.

In cement production,
enterprises are increasingly using waste and biomass as fuel to reduce fossil-fuel
consumption and emissions.

Furthermore, adopting
new technologies, emission reduction solutions, and clean energy transitions creates
opportunities to participate in the carbon market. Through internationally-recognized
measurement, reporting, and verification (MRV) systems, enterprises’ mitigation
efforts can be certified and used for participation in the carbon market.

The essence of the
carbon market is to deploy market-based mechanisms that motivate enterprises to
accelerate emission reduction actions, gain green certification, and trade carbon
credits. It has become a global trend.

Green transition
and low-carbon development are not only about complying with legal requirements,
they are also essential for global market access. In this process, economic development
goes hand-in-hand with environmental protection, contributing to sustainable development
for both national goals and corporate goals.

We will continue
to accompany and support enterprises to ensure they achieve economic performance,
business growth, profitability, and environmental protection.

Based on the practical
implementation of GHG inventories, how would you assess the current level of awareness
regarding green development and low emissions among enterprises?

I have observed
significant improvements in awareness, especially among enterprises with high fossil-fuel
consumption and emissions. However, levels of understanding remain uneven across
sectors.

GHG inventories
involve three scopes. Scope 1 covers direct emissions from fossil-fuel use. Scope
2 includes indirect emissions from electricity or steam consumption. And Scope 3
is the most comprehensive, covering emissions across the entire product life-cycle.

Currently, most
enterprises are conducting inventories up to Scope 2. Conducting full life-cycle
emission inventories requires alignment across sectors. It is estimated that more
than half of enterprises with energy-intensive operations pay considerable attention
to inventories and green transition measures, while the remainder, mostly support
industries and small and medium-sized enterprises, lack financial and human resources.

This is,
however, a major improvement compared to five years ago, and Vietnamese businesses
are considered more agile than many in the region.

A key factor is
that enterprises clearly recognize global trends, market pressure, and the economic
and profit-driven benefits of mitigation and green transition. Meanwhile, Vietnam
has strengthened policies, implementation activities, and practical guidance that
creates momentum for enterprises.

Vietnam has set
a double-digit growth target for the immediate future. What new requirements does
this create for harmonizing economic growth with environmental protection and emission
reduction goals?

A higher growth
target will inevitably require more resources and energy. This is a natural rule.

In this context,
one of the most important factors is changing corporate culture in the way resources
and energy are used. In recent years, Vietnam has seen clear progress in shifting
enterprise awareness.

In addition, tools
and technologies must be deployed to help enterprises translate this cultural shift
into concrete action. This will help ensure economic growth while achieving climate
and environmental goals and reducing GHG emissions.

If core industries
transform in this direction, related industries, commerce, and services will also
shift within the overall supply chain ecosystem.

Of course, this
requires time, human resources, financial capacity, and technological readiness.
Vietnam has made strong initial progress, and with greater effort in the time
ahead I believe we can achieve both economic growth and sustainable development
goals.

VET-Vietnam Economic Times