On January 11, FPT Digital organized the DxHub™ 01 event with the theme “CBAM mechanism and greenhouse gas inventory guidelines for manufacturing enterprises”. The speakers shared the same view that Vietnamese businesses should urgently prepare if they want to adapt promptly to the requirements of the CBAM mechanism as well as take advantage of the pioneer group.
The program shares important information about CBAM (Carbon Border Adjustment Mechanism), how to declare and plan for emission reduction. This not only helps businesses reduce the risk of violations but also contributes to joint efforts to reduce the impact of climate change, building a positive image for businesses in the community and the market.
At the opening of the event, FPT Digital’s Digital Transformation and Sustainable Transformation Service Consultant Nguyen Tuan Anh said that global emissions are becoming more and more serious, the main reason is human socio-economic production activities.
The CBAM was approved by the EU on May 17, 2023, and the CBAM transition phase begins on October 1, 2023. During this period, importers are required to collect data for the fourth quarter of 2023 and submit their first report by January 31, 2024. From January 1, 2026 (Official phase), enterprises are responsible for preparing and submitting annual CBAM reports as well as buying/returning CBAM certificates equivalent to emissions. Businesses that are not obliged to submit reports also need to be ready to receive requests for information from customers/authorized declarants for CBAM goods.
The birth of CBAM has a direct impact on 6 industries in our country including: Cement, Electricity, Iron & Steel, Aluminum Fertilizer, Hydrogen; and indirect impacts on dozens of other industries. Expert Nguyen Tuan Anh said that by 2034, the EU will no longer support emission quotas, which means that businesses are obliged to pay taxes on all carbon emissions. This poses requirements that businesses need to master in order to declare CBAM effectively.
In Vietnam, there have been very strong policy movements. Mr. Vuong Xuan Hoa, Deputy Director, Institute of Ecology and Environment, Expert on Climate Change and Sustainable Development, said that Vietnam is one of the Asian countries with the biggest ambition when committing to reduce net emissions by 43% (compared to 2014) by 2030, towards the goal of net zero emissions by 2050.
Responding to the spirit of the government, only in the last 2 years. 1,912 large enterprises have carried out greenhouse gas inventories every 2 years. Along with that is the wave of green capital flow shift. Many leading enterprises such as Vinamilk, Vinfast, Unilever, P&G, Pepsi… considering ESG as a goal in tandem with business strategy.
Mr. Vuong Xuan Hoa emphasized that “Vietnamese enterprises need to take actions to meet the requirements of policies and regulations in the future, consider what needs to be done in the short and medium term immediately to avoid regrets”. He also gave directions to support businesses to build a roadmap to reduce emissions. The first is to choose to build a team and operate appropriately to improve the capacity to implement emission reduction and sustainable growth goals. The second is to determine deflation targets in accordance with the business strategy, current status and resources of the enterprise.
From the perspective of the Institute for Applied Research and Enterprise Innovation (3AI), Mr. Tim Nguyen said that the birth of CBAM is both a challenge and an opportunity for Vietnamese businesses. The challenge lies in the fact that CBAM is so new, the researchers themselves are still struggling to find out. But this is also an opportunity for businesses to re-establish the way of managing and administering daily processes, proactively building an “internal cultural value system” – the core foundation for sustainable development.
He recommended that the parties should strengthen dialogue, with Government Agencies and Organizations, with Experts and Researchers, with International Organizations and Industry Associations to have a more holistic view of CBAM and better understand its impact in specific contexts. Second, each individual needs to actively ask questions. ”If you ask, there will be an answer. Ask because you don’t know, to be able to find what you know.”
At the end of the program, the participants had a very lively exchange with the speakers to clarify the information that had been shared. The organizers gave a small gift to each guest attending the event This gift in place of FPT Digital’s message that the green transformation journey can germinate from very small efforts made persistently every day, by the individuals present in the program.
