A mangrove forests along Tam Giang lagoon in Quang Loi commune in Thua Thien- Hue province’s Quang Dien district. Thua Thien-Hue is one of four provinces chosen for a pilot payment plan if they release too much gas into the environment. (Photo: VNA) Hanoi (VNS/VNA) - Factories which omit too much carbon dioxide waste willhave to pay fees under a new pilot scheme in four provinces.
The planwas passed during a conference held in Hanoi on August 7.
The ideais for the next two years, 20 factories in Quang Ninh, Thanh Hoa, Quang Nam andThua Thien- Hue will be under close watch and if they omit too much gas intothe atmosphere they will be charged.
After approvalfrom Prime Minister Nguyen Xuan Phuc, the Ministry of Agriculture and RuralDevelopment detail plans to put the programme into play.
Twentyproduction facilities that have large greenhouse gas emissions, including ninethermo-power facilities and 11 cement production businesses.
It alsostipulates the level of payment for production units engaged in thermal powertrading with 4 VND per 1 kWh (equivalent to 2 USD per 1 tonne of carbondioxide) and 2,100 VND per 1 tonne of clinker (equivalent to 1.35 USD per 1tonne of carbon dioxide) for those engaged in cement production and trading.
Accordingto Nguyen Van Vu, head of Finance and Planning Department under VietnamAdministration of Forestry (VAF), the payment is lower than the World Bank’sForest Carbon Partnership Facility pledge to pay for emission reduction effortsin North Central Region which equals to 5 USD per tonne of carbon dioxide.
Thislevel of payment would increase the electricity’s production cost as wellas the factories’ cement production cost by 0.29 percent, he said, addingthe price hike is still within the predicted rise of actual cost of the cementmanufacturing sector – between 0.3-1 percent per year, he said.
It wasexpected the four provinces would collect about 172 billion VND (7.4 millionUSD) a year. Of these, Quang Ninh gained 123 billion VND while Thanh Hoa, ThuaThien- Hue and Quang Nam obtained 41 billion VND, 6 billion VND and 2 billionVND, respectively, Vu said.
Thesewere significant sources of income for forest planting and protection atlocalities, especially for Quảng Ninh province where the collection of forestenvironmental service fee was very low - only about 4 billion VND per year.
The pilotimplementation will take place from beginning of next year and finish by theend of 2021.
Nguyen DucSon, Deputy Director of Dong Trieu Thermal Power Company, said the companysupported the trial because thermal power emitted large greenhouse gasemissions. However, in the context of increasingly fierce competition, thiscost must be included in the electricity price and a plan is needed forenterprises to implement, he said.
Son’sopinion was shared by Le Tri Thanh, Vice Chairman of the provincial People’sCommittee of Quang Nam province.
Thanhsaid priority should be given to owners of forests which were close to thefactories.
He alsosaid the implementation should not affect the production plan of enterprisesnext year.
Addressingthe conference, Ha Cong Tuan, Deputy Minister of Agriculture and RuralDevelopment, said as Vietnam has been adopting measures toreduce greenhouse gas emissions and develop green economy, thepayment of forest environment fee for absorption and retaining of forestcarbon, gradually forming the carbon dioxide emission market was an evitabletrend.
Tuanasked the VAF to collect comments from enterprises and localities so that theministry would complete the document and submit to the Prime Minister inOctober this year.
The draftdecision should clarify the scope of the application of the decision and thereason why it applied only to the two sectors – thermal power and cementproduction, he said.
Thefoundation for determining service prices, payment to service providers shouldalso be made clear to ensure legitimate interests of participating enterprises,Tuan said.-VNS/VNA
The planwas passed during a conference held in Hanoi on August 7.
The ideais for the next two years, 20 factories in Quang Ninh, Thanh Hoa, Quang Nam andThua Thien- Hue will be under close watch and if they omit too much gas intothe atmosphere they will be charged.
After approvalfrom Prime Minister Nguyen Xuan Phuc, the Ministry of Agriculture and RuralDevelopment detail plans to put the programme into play.
Twentyproduction facilities that have large greenhouse gas emissions, including ninethermo-power facilities and 11 cement production businesses.
It alsostipulates the level of payment for production units engaged in thermal powertrading with 4 VND per 1 kWh (equivalent to 2 USD per 1 tonne of carbondioxide) and 2,100 VND per 1 tonne of clinker (equivalent to 1.35 USD per 1tonne of carbon dioxide) for those engaged in cement production and trading.
Accordingto Nguyen Van Vu, head of Finance and Planning Department under VietnamAdministration of Forestry (VAF), the payment is lower than the World Bank’sForest Carbon Partnership Facility pledge to pay for emission reduction effortsin North Central Region which equals to 5 USD per tonne of carbon dioxide.
Thislevel of payment would increase the electricity’s production cost as wellas the factories’ cement production cost by 0.29 percent, he said, addingthe price hike is still within the predicted rise of actual cost of the cementmanufacturing sector – between 0.3-1 percent per year, he said.
It wasexpected the four provinces would collect about 172 billion VND (7.4 millionUSD) a year. Of these, Quang Ninh gained 123 billion VND while Thanh Hoa, ThuaThien- Hue and Quang Nam obtained 41 billion VND, 6 billion VND and 2 billionVND, respectively, Vu said.
Thesewere significant sources of income for forest planting and protection atlocalities, especially for Quảng Ninh province where the collection of forestenvironmental service fee was very low - only about 4 billion VND per year.
The pilotimplementation will take place from beginning of next year and finish by theend of 2021.
Nguyen DucSon, Deputy Director of Dong Trieu Thermal Power Company, said the companysupported the trial because thermal power emitted large greenhouse gasemissions. However, in the context of increasingly fierce competition, thiscost must be included in the electricity price and a plan is needed forenterprises to implement, he said.
Son’sopinion was shared by Le Tri Thanh, Vice Chairman of the provincial People’sCommittee of Quang Nam province.
Thanhsaid priority should be given to owners of forests which were close to thefactories.
He alsosaid the implementation should not affect the production plan of enterprisesnext year.
Addressingthe conference, Ha Cong Tuan, Deputy Minister of Agriculture and RuralDevelopment, said as Vietnam has been adopting measures toreduce greenhouse gas emissions and develop green economy, thepayment of forest environment fee for absorption and retaining of forestcarbon, gradually forming the carbon dioxide emission market was an evitabletrend.
Tuanasked the VAF to collect comments from enterprises and localities so that theministry would complete the document and submit to the Prime Minister inOctober this year.
The draftdecision should clarify the scope of the application of the decision and thereason why it applied only to the two sectors – thermal power and cementproduction, he said.
Thefoundation for determining service prices, payment to service providers shouldalso be made clear to ensure legitimate interests of participating enterprises,Tuan said.-VNS/VNA
VNA