Decision 1191/QD-BGTVT 2024 Plan on mitigation of greenhouse gas emissions in the Transport sector through 2030

 DECISION

On promulgating the Plan on mitigation of greenhouse gas emissions in the Transport sector through 2030

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THE MINISTER OF TRANSPORT

Pursuant to Decree No. 56/2022/ND-CP dated August 24, 2022 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Transport;

Pursuant to Decree No. 06/2022/ND-CP dated January 7, 2022 of the Government providing the mitigation of greenhouse gas emissions and protection of the ozone layer;

Pursuant to Directive No. 13/CT-TTg dated May 2, 2024 of the Prime Minister on intensifying the management of carbon credits to implement the Nationally Determined Contribution (NDC);

At the request of the Director of the Science, Technology and Environment Department and the Director of the Transport Development and Strategy Institute.

DECIDES:

Article 1. To promulgate herewith the Plan on mitigation of greenhouse gas emissions in the Transport sector through 2030.

Article 2. To assign the Science, Technology and Environment Department to be the focal point for coordinating with relevant agencies and units in monitoring the implementation and synthesizing and reporting the implementation of this Plan.

Article 3. This Decision takes effect from the date of signing.

The Chief of the Office of the Ministry, the Chief Inspector of the Ministry, Directors General of Departments, Directors of Departments, Directors of the Departments of Transport of provinces and centrally-run cities, Heads of relevant agencies and units are responsible for implementing this Decision./.

PLAN ON MITIGATION OF GREENHOUSE GAS EMISSIONS
IN THE TRANSPORT SECTOR THROUGH 2030
(Issued together with Decision No. 1191/BGTVT dated September 30, 2024
of the Minister of Transport)

I. OBJECTIVES

To formulate the plan on implementation of measures to reduce greenhouse gas (GHG) emissions in the transport sector to meet the GHG emission reduction objectives in accordance with the “Unconditional Contribution” in Vietnam’s Nationally Determined Contribution (NDC):

By 2030, the GHG emission reduction potential according to the “Unconditional Contribution” in transport sector will reduce GHG emissions by 5.9% compared to the business-as-usual (BAU) scenario, corresponding to a reduction of 45.62 million tons of CO_2e over the entire period. Specifically as follows:

- In 2025: reduction of 3.4 million tons of CO_2e;

- In 2030: reduction of 10.61 million tons of CO_2e;

- Period through 2030: reduction of 45.62 million tons of CO_2e¹.

II. MEASURES AND ACTIVITIES TO MITIGATE GREENHOUSE GAS EMISSIONS

2.1. Results of GHG inventory in transport sector

Results of GHG inventory in transport in 2014, 2016, 2018 and 2021 are shown in Table 1 below.

Table 1. GHG emission inventory results in Transport sector in the period of 2014 - 2021

Division: Thousand tons of CO_2e

Sources: MOT

2.2. Business-as-Usual (BAU) scenario

The BAU scenario is formulated based on information on transport activities and macroeconomic assumptions. The year of 2014 is chosen as the base year to determine the BAU scenario, consistent with the base year for formulating the NDC 2022 report. The transport activity data in 2014 is collected and synthesized from the published data sources of the Ministry of Transport and the relevant agencies. The applied emission factor upon formulation of the BAU scenario is mainly the default factor of IPCC 2006.

The formulation of BAU scenario in transport sector uses bottom-up approach. The EFFECT (Energy Forecasting Framework and Emissions Consensus Tool) model is used to formulate the BAU and GHG emission reduction scenarios in the transport sector.

The BAU³ scenario of the transport sector is the basis for developing measures, determining the potential for GHG emission reduction and the sector's contribution to the energy sector in Vietnam's NDC. The input data of the BAU scenario is as follows:

Input data and key assumptions:

- General information on GDP: The data on GDP growth rate in the period of 2014 - 2020 is taken from the announcement of the General Statistics Office of Vietnam. For the period of 2021 - 2030, the determined economic development target is: “To strive for an average GDP growth rate of about 7% per year in the 2021-2030 period” according to Resolution 81/2023/QH15 dated January 9, 2023 on the National Overall Master Plan for the 2021-2030 period, with a vision toward 2050.

- Population: Vietnam's population figure of 90.7 million people in 2014 was taken from data published by the General Statistics Office of Vietnam. The population forecast data for the 2015-2030 period is based on the Viet Nam Population Projection 2016 conducted by the General Statistics Office of Vietnam and the United Nation Fund Population Agency.

- Data on specialized sectors in transport: The number of vehicles from official reports of the Vietnam Register, the Directorate for Roads of Vietnam, the Vietnam Railways Authority, the Vietnam Inland Waterways Administration, the Vietnam Maritime Administration, the Civil Aviation Authority of Vietnam and data published in the Annual Statistical Yearbook of the General Statistics Office of Vietnam, 2014.

Under the above inputs and assumptions, the estimated GHG emissions under the BAU scenario are forecast to increase by an average of 6 - 7% per year, reaching nearly 90 million tons of CO_2e by 2030 (see Table 2).

Table 2. GHG emissions from the transport sector in Vietnam under the BAU scenario

Unit: Million tons of CO_2e

Sources: MOT

2.3. Potential for GHG emission reduction in transport sector according to “Unconditional Contribution” in Technical Report on NDC 2022

According to NDC 2022, the implementation of GHG emission reduction measures and activities according to “Unconditional Contribution” in transport sector is expected to contribute to reducing 45.62 million tons of CO_2e accumulated in the period of 2021-2030.

The specific contribution level of GHG emission reduction potential according to each specific measure is as follows:

Table 3. GHG emission reduction potential results of each measure and mitigation activity in the Unconditional Contribution of the Transport sector

Sources: Vietnam’s Technical Report on NDC, 2022

2.4. Description on measures, goals, and methods for implementing GHG emission reduction measures in transport under the “Unconditional Contribution”

2.4.1. Measure E17. Fuel consumption limit for newly manufactured, assembled and imported motorized vehicles

a) Goals, roadmap and time of implementation

According to NDC 2022, by 2030, the measure of applying fuel consumption limits for newly manufactured, assembled and imported motorized vehicles shall achieve the following results:

- 100% of motorbikes shall reach the fuel consumption norm of 2.3 liters/100km;

- 100% of newly manufactured, assembled and imported cars for sale shall reach the fuel consumption norm: 4.7 liters/100km for cars with engine capacity <1400cc; 5.3 liters/100km for cars with engine capacity from 1400 to 2000cc; 6.4 liters/100km for cars with engine capacity >2000cc. The applicable rates for new vehicles are 30%, 50%, 75% and 100% in 2027, 2028, 2029 and 2030, respectively.

b) Implementation plan

In 2024: Promulgate the national technical regulations on technical safety quality, environmental protection, energy consumption for motorized vehicles, specialized motorbikes, motorized vehicle spare parts and organize implementation.

c) Agency assuming the prime responsibility for the implementation and resources

Vietnam Register: implement from the state budget.

2.4.2. Measure E18. Transition of passenger transport mode from use of private vehicles to use of public vehicles

a) Goals, roadmap and time of implementation

- Improve service quality and develop public passenger transport system in centrally-run cities and type I urban areas to achieve the goals in NDC 2022, specifically: The share of public passenger transport is 45% - 50% in Hanoi; 25% in Ho Chi Minh City; 25% - 35% in Da Nang; 20% in Can Tho; 10% - 15% in Hai Phong; at least 5% in type I urban areas.

- Bus rapid transit (BRT)/high-quality buses: By 2030, there will be 01 bus rapid transit (BRT) line operating in Hanoi, 02 high-quality bus/ BRT lines operating in Ho Chi Minh City and 01 high-quality bus/ BRT line operating in Da Nang;

- Urban railway: In addition to the Cat Linh - Ha Dong Urban Railway Line 2A in Hanoi, it is expected that there will be: (i) the elevated section of Line 3 Nhon - Hanoi Railway Station in Hanoi by the end of 2024 and the entire Line 3 will be completed and put into operation by 2030, and (ii) Metro Line 1 Ben Thanh - Suoi Tien in Ho Chi Minh City will be put into operation from the fourth quarter of 2024.

b) Implementation plan

- From 2024 through 2025: Review and update the urban transport development plan in accordance with the objectives and roadmap stated at Point a of this Section, submit it to the People's Committees of the provinces and centrally-run cities for approval and organization of implementation in localities. For localities that have issued the Plan in accordance with the above objectives, continue to organize implementation, ensuring the achievement of the set objectives.

- From 2025 through 2030: Continue to advise and implement urban railway projects, invest in water bus lines, and expand new bus lines in accordance with approved plans and planning. In the immediate future, focus on implementation in 05 centrally-run cities⁵ and type I cities.

c) Agency in charge and resources of the implementation

Departments of Transport of provinces and centrally-run cities, implement with local budgets, social sources and other legal sources.

2.4.3. Measure E19. Transition of transport modes from road to railway

a) Goals, roadmap and time of implementation

In the period of 2024 - 2030

- Renovate and upgrade to effectively exploit existing railway lines, connect international railway lines; complete investment preparation, arrange resources to start construction of a number of new railway lines, prioritize the North-South high-speed railway line, lines connecting international gateway seaports, international airports, railway hubs in major cities, research to deploy the Ho Chi Minh City - Can Tho railway line;

- By 2030, the volume of freight transport will reach 11.8 million tons, accounting for a market share of about 0.27%. The volume of freight traffic will reach 7.35 billion tons.km, accounting for a market share of about 1.38%⁶.

b) Implementation plan

In the period of 2024 - 2030

- Focus on upgrading and renovating existing railway lines with effective exploitation such as Hanoi - Ho Chi Minh City line, Hanoi - Lao Cai line, Hanoi - Hai Phong line to achieve the single line’s capacity ≥ 25 pairs of trains/day.night.

- Invest in the construction of railways in the traffic hubs of Hanoi City, Ho Chi Minh City, Hai Phong, Da Nang, Nha Trang and railways connecting seaports and ICDs.

- Complete the phase of investment preparation and investment in the construction of priority sections on the Hanoi - Ho Chi Minh City high-speed railway.

- Research, review and propose policies to encourage transport business units on transition of transporting goods by road to by railway.

c) Agency in charge and resources of the implementation

The Vietnam Railways Authority, the Vietnam Railways implement with state budget, mobilization of social resources and other legal sources.

2.4.4. Measure E20. Transition of transport modes from road to inland waterway and coastal road

a) Goals, roadmap and time of implementation

- Develop the infrastructure of inland waterways and coastal roads in Vietnam under comprehensive and unified master plan on a national scale under the requirements of industrialization and modernization of the country; Promote the comprehensive and synchronous efficiency between inland waterways and coastal roads infrastructure and related infrastructure, promote industrial and service development as a driving force for socio-economic development and ensure national defense and security for localities, economic regions and related areas.

- By 2030, the volume of freight transport will reach about 715 million tons; the volume of freight traffic will reach about 150 billion tons.km⁷.

b) Implementation plan

In the period of 2024 - 2030

- Complete the infrastructure of inland waterways and coastal roads, especially on main lines with high traffic density; ensure convenient connection of inland waterways and coastal roads with the road, railway, river port and seaport systems.

- Research, review and propose mechanisms and policies to encourage transport business units on transition of transporting goods by road to inland waterways and coastal roads and organize implementation.

c) Agency in charge and resources of the implementation

The Vietnam Maritime Administration, the Vietnam Inland Waterways Administration, implement with state budget, social resources and other legal sources.

2.4.5. Measure E21. Use of CNG buses

a) Goals, roadmap and time of implementation

In the period of 2024 - 2030

Continue to develop CNG buses in Hanoi and Ho Chi Minh City to ensure the objectives in NDC 2022, specifically: By 2030, the total number of CNG buses will be 623, including 423 buses in Ho Chi Minh City and 200 buses in Hanoi.

b) Implementation plan

Continue to review and rationalize the bus line network; redesign bus lines when re-bidding to ensure compliance with the technical specifications and operational capabilities of CNG buses.

c) Agency in charge and resources of the implementation:

Departments of Transport of Hanoi City, Ho Chi Minh City, implement with capital from local state budget and social resources.

2.4.6. Measure E22. Increase in the load factor of trucks

a) Goals, roadmap and time of implementation

According to NDC 2022, by 2030, the load factor of trucks will improve from 56% to 60%.

b) Implementation plan

In the period of 2024 - 2030

- Develop and improve the logistics and warehouse systems serving freight transport to increase the rate of trucks with goods and increase the rate of loading goods onto trucks.

- Research and improve mechanisms and policies and promote the operation of transport exchanges, thereby optimizing the load factor of trucks.

c) Agency in charge and resources of the implementation

The Department for Road of Vietnam implements with state budget, social resources and other legal sources.

2.4.7. Measure E23. Encouragement of the use of biofuels

a) Goals, roadmap and time of implementation

According to NDC 2022, expand the blending and use of 100% E5 gasoline for road motorized vehicles by 2030.

b) Implementation plan

Disseminate, propagate, and raise people's awareness in using biofuel (E5 gasoline) locally, to increase the demand for E5 gasoline in transport.

c) Agency in charge and resources of the implementation

Departments of Transport of provinces and centrally-run cities; implement with local state budget and other legal sources.

2.4.8. Measures E24 and E25: Use of electric motorbikes and electric automobiles

a) Goals, roadmap and time of implementation

Implement according to NDC 2022, specifically by 2030: Electric automobiles reach a usage rate of 30%; electric motorbikes account for 22% of the total number of motorbikes in use.

b) Implementation plan

- Continue to review, propose amendments and supplements to the national technical regulations related to electric automobiles, electrically propelled mopeds and motorcycles.

- Formulate and promulgate the national technical regulations to replace the national technical regulation 09:2015/BGTVT on safety and environmental protection for automobiles, including updating regulations related to electric automobiles.

- Formulate and promulgate the Circular regulating the classification of road vehicles; signs to identify motorized vehicles using clean energy, green energy, and environmental friendliness.

- Research and review the use life of electric passenger and cargo cars; propose more favorable regulations for electric automobiles if they meet technical safety and environmental protection requirements.

- Implement the Circular of the Minister of Transport promulgating the national technical regulation on roadside stations, which includes regulations on the number of locations for installing electric charging posts and power supply infrastructure in roadside stations⁸ to develop electric charging infrastructure satisfying the needs of people and enterprises.

- Research and develop a network of electric charging station infrastructure on national highways and expressways in the "road transport infrastructure master plan for the period of 2021-2030, with vision to 2050".

- Research and develop the national electric vehicle conversion master plan.

- Research and propose a mechanism for exchanging, offsetting quotas and exchanging carbon credits from projects converting from fossil fuel vehicles to electric vehicles.

- Formulate process and procedures for inspection of emissions of motorcycles and mopeds⁹

c) Agency in charge and resources of the implementation

The Vietnam Register, the Department for Road of Vietnam, the Vietnam Expressway Authority; implement with state budget and other legal sources.

2.4.9. Measure E26: Use of electric buses

a) Goals, roadmap and time of implementation

According to NDC 2022, by 2025, the electric buses will be used and the usage rate is estimated to reach 30% by 2030.

b) Implementation plan

- Formulate and submit to the People's Committees of provinces and centrally-run cities the plan on converting to electric buses in accordance with local conditions and capabilities.

- Develop and submit to the People's Committees of provinces and centrally-run cities, promulgate economic and technical norms for intra-provincial electric buses according to their authority; higher subsidy policies for electric buses in accordance with the increased costs due to the conversion of vehicles using electric energy in accordance with local conditions and capabilities.

- Research, develop and propose mechanisms and policies to encourage the conversion of buses using electric energy and organize implementation.

c) Agency in charge and resources of the implementation

The Department for Road of Vietnam; the Departments of Transport of provinces and centrally-run cities; implement with local budgets, social sources and other appropriate sources.

III. IMPLEMENTATION PLAN

Plan, resources, roadmap for implementing measures and targets for reducing GHG emissions in transport sector are in the attached Appendix I.

IV. SUPERVISION AND EVALUATION

The supervision and evaluation of the implementation of GHG emission reduction goals in transport sector are carried out in accordance with the Circular of the Minister of Transport regulating the measurement, reporting, appraisal of GHG emission reduction and GHG inventory in the transport sector.

V. IMPLEMENTATION ORGANIZATION

5.1. Funding for implementation

a) For agencies and units under the Ministry of Transport; Departments of Transport of provinces and cities

- Use the state budget under the current regulations;

- Mobilize maximum resources from the state budget, social resources and other legal sources to implement GHG emission reduction measures in transport sector.

b) For enterprises: Use the enterprise’s funding sources as prescribed by law.

5.2. Organization of implementation

5.2.1. Agencies and units under the Ministry of Transport

Agencies and units under the Ministry of Transport, based on their assigned functions, tasks and management areas, shall organize and implement the tasks in the Appendix issued with this Plan.

5.2.2. Legal Department

Assume the prime responsibility for synthesizing proposals for registration of amendments, supplements and promulgation of legal documents of agencies and units; collect opinions from relevant agencies and units; synthesize and submits to the Minister for consideration and inclusion in the Ministry's annual legal document development program.

5.2.3. Planning and Investment Department

- Act as the focal point for advising on the development and recommendation of support mechanisms and policies to convert to the use of electric and green energy vehicles in transport.

- Mobilize resources to complete investment in road, railway and inland waterway infrastructure in accordance with specialized master plan approved by the Prime Minister.

5.2.4. Transportation Department

- Advise on the formulation of policies and mechanisms for managing transportation activities towards reducing emissions and saving energy; develop public passenger transport in urban areas nationwide;

- Research and advise on integrating incentive policies and supporting investment in the application of electricity and green energy, environmentally friendly technology, and the economic and efficient use of energy in transport development policies.

5.2.5. Transport Infrastructure Department

- Assume the prime responsibility for advising on the development of incentive policies and mechanisms for the development of infrastructure for electric charging stations and green energy stations on major highways, national highways, the national road network and on roads connecting seaports, inland waterway ports and airports.

5.2.6. Financial Department

- Assume the prime responsibility for formulating plans and balancing regular budgets for units under the Ministry of Transport to implement relevant programs, topics, projects and tasks.

- Advise on the development and recommendation of financial support mechanisms and policies to convert to the use of electric and green energy vehicles in transport.

5.2.7. Science, Technology and Environment Department

- Formulate and complete regulations on the system of measuring, reporting and assessing GHG emission reduction and GHG inventory in transport.

- Guide, inspect and supervise compliance with legal regulations on measuring, reporting, assessing GHG emission reduction results and GHG inventory for sectors and establishments under the management of the Ministry of Transport.

- Implement activities to raise awareness of the community and enterprises on the responsibilities and benefits of reducing GHG emissions;

- Implement international cooperation programs and activities on technology transfer and capacity building on GHG emission reduction for sub-sectors in the transport sector.

- Develop a report on GHG emission reduction in the sectors under its management according to regulations.

- Assume the prime responsibility for advising on the development and completion of the system of national technical standards and regulations and regulations on technical safety quality and environmental protection for vehicles using electricity and green energy.

- Act as the focal point for coordinating with agencies and units inside and outside the Ministry of Transport, and enterprises in the process of implementing the GHG emission reduction plan.

- Act as the focal point for monitoring, urging, inspecting, and evaluating the implementation of this Plan; summarize the implementation results as required by the leaders of the Ministry of Transport.

- Organize the review and assessment of the ability to implement the Plan based on the actual implementation situation; propose adjustments to GHG emission mitigation measures and targets in transport to ensure the implementation of the GHG emission reduction target in transport through 2030 according to the NDC 2022.

5.2.8. Specialized management departments

Assume the prime responsibility for the development and completion of institutions, policies, standards and regulations related to improving energy efficiency, converting to using electricity and green energy for green vehicles, equipment and transport infrastructure in transport; invest in developing the transport infrastructure system according to the master plan to encourage the shift of freight transport from road to rail, waterway and coastal transport; develop human resources ready to receive transfer, manage, exploit and operate new technologies on green vehicles, equipment and infrastructure; develop and implement communication plans and other tasks to implement the mitigation plan; annually organize the assessment of implementation results and report to the Ministry of Transport.

5.2.9. Transport Development and Strategy Institute

- Deploy research tasks, propose solutions, and policy mechanisms related to the conversion of electricity and green energy use, and reduction of carbon and methane emissions in the transport sector.

- Participate in implementing activities to raise awareness of the community and enterprises on the responsibilities and benefits of reducing GHG emissions.

- Organize the review, research, and synthesis of activities with the potential to create carbon credits in the transport sector.

5.2.10. Departments of Transport of provinces and centrally-run cities

- Formulate and submit to the People's Committees of provinces and centrally-run cities the plan on converting to electric buses in accordance with local conditions and capabilities.

- Develop and submit to the People's Committees of provinces and centrally-run cities, promulgate economic and technical norms for intra-provincial electric buses according to their authority; higher subsidy policies for electric buses in accordance with the increased costs due to the conversion of vehicles using electric energy in accordance with local realities.

- Implement state management tasks on GHG mitigation according to assigned functions and tasks for the transport sector in the localities as prescribed by law.

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¹ Sources: Vietnam's Nationally Determined Contribution (NDC) 2022.

² Due to the impact of the COVID pandemic, freight and passenger transport has been severely affected and stagnant. Because there are only preliminary statistics of passenger and freight transport by road, there is not enough basis to conduct an inventory of GHG emissions of the transport sector in 2020.

³ Updated NDC 2022: The BAU of the energy sector is the basis for developing measures, determining the GHG emission reduction potential and the emission reduction contribution of the energy sector in the NDC 2022. The GHG emissions are calculated based on fuel consumption data and emission factors of each fuel type. The emission factors are determined according to the Tier 1 method in the revised GL 1996 and GL 2006 guidelines. These coefficients have been used for Vietnam's GHG inventory.

⁴ According to the NDC Report 2020. According to the NDC 2022, the BAU emissions of the transport sector are 88.1 million tons

⁵ (1) Plan No. 201/KH-UBND dated October 16, 2020 of the Hanoi People's Committee approving the Scheme on improving service quality and developing the public passenger transport system by bus in Hanoi Capital for the period of 2019-2020, through 2025, with a vision to 2030; (2) Decision No. 3998/QD-UBND dated July 20, 2020 of the Ho Chi Minh City People's Committee approving the Scheme on strengthening public passenger transport combined with controlling personal vehicles participating in traffic in Ho Chi Minh City; (3) Plan No. 238/UBND-KH dated October 2, 2020 of the People's Committee of Hai Phong City on the implementation of Resolution No. 21/NQ-HDND dated July 22, 2020 of the People's Council of Hai Phong City on approving tasks and solutions for developing the transport infrastructure system and preventing traffic congestion in the city until 2030, with a vision after 2030; (4) Decision No. 5773/QD-UBND dated December 21, 2019 of the People's Committee of Da Nang City approving the Scheme on researching mechanisms and policies to support, give incentives to and encourage the development of public passenger transport by bus in Da Nang City; (5) Decision No. 2439/QD-UBND dated October 11, 2019 of the People's Committee of Can Tho City approving the plan to develop public passenger transport by bus in Can Tho City for the period of 2019-2021.

⁶ According to the NDC 2022, by 2030, freight transport by railway will increase by 12.5% ​​annually.

⁷ According to the NDC 2022, by 2030, the volume of goods transported by inland waterways will increase from 127.8 billion ton-km to 128.8 billion ton-km (increased from 20.6% to 21.6% of total volume); the rate of road transport will decrease from 23.3% to 21.2%; the volume of goods transported by road converted to coastal roads is considered to be equal to the volume of goods transported from road converted to inland waterways in the same period.

⁸ The minimum number of parking spaces that can accommodate cars for charging accounts for 10% of the total parking spaces of roadside stations.

⁹ Point dd, Clause 5, Article 42 of the Law on Road Traffic Order and Safety.

Appendix

MEASURES ON MITIGATION OF GREENHOUSE GAS EMISSIONS, ROADMAP AND RESOURCES OF IMPLEMENTATION
 (Issued together with the Plan on mitigation of greenhouse gas emissions in the Transport sector through 2030)

Note:

State budget: State budget

Social resources: Social resources