Emissions Quota Management
Enterprises and production facilities are only allowed to emit GHG emissions within the allocated quota.There are 3 cases where businesses emit greenhouse gases compared to their quotas:
Case 1: The actual emissions of the enterprise are in accordance with the allocated quota;
Case 2: The enterprise invests in production technology so that the actual emissions are lower than the allocated quota. In this case, the enterprise can:
+ Selling quotas on the carbon market;
+ Transfer to the next years within the commitment period;
+ The allocated greenhouse gas emission quotas will automatically be recovered by the Ministry of Natural Resources and Environment when facilities stop operating, dissolve or go bankrupt.
Case 3: A business’s actual emissions are higher than the allocated quota, in this case the business can:
+ Buy quota from the carbon credit exchange;
+ Borrowing GHG emission quotas allocated for the next year;
+ Use the amount of GHG emissions quota transferred from the previous year (if any);
+ If at the end of the commitment period, emissions still exceed the quota, the facility must pay for the excess GHG emissions and the excess GHG emissions will be deducted from the quota allocated for the commitment period. Later.
It is worth noting that emission quotas are different from carbon credits. Carbon credits are a type of certificate that represents the reduction of one ton of GHG emissions – 1 ton of CO2eq. So that businesses can better understand carbon credits, Stellar Tech will introduce this topic in the following article.
It can be seen that emission quotas are not only a tool to manage greenhouse gas emissions but also promote innovation in the fields of clean technology and renewable energy. The introduction of emissions quotas and Nationally Determined Contributions (NDCs) creates a global platform for climate change efforts, encouraging countries to continuously improve and increase their commitment commitment, ensuring a more sustainable future.
Reputable and fast environmental records consulting unit in the Mekong Delta
Stellar Tech as a unit specializes in providing consulting services and technology solutions in the field of environment. We are committed to accompanying your Business in properly implementing regulations related to “Inventory and mitigation of Greenhouse Gas emissions”, through consulting and supporting legal information. If your Business needs more detailed information related to implementing a Greenhouse Gas Inventory, please contact Stellar Tech for direct advice and support.
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