Exporting to Europe: Businesses must focus all their efforts on making emission reports

DNVN - According to expert Le Xuan Nghia - member of the National Financial and Monetary Policy Advisory Council, if Vietnamese enterprises want to export to Europe, they need to quickly focus all their efforts on making greenhouse gas emission reports.

Sharing with Vietnam Business Magazine, expert Le Xuan Nghia - member of the National Financial and Monetary Policy Advisory Council said that the "green" factor is the number 1 important issue for businesses.

The first problem of Vietnamese enterprises today is how to focus on operating according to market demand. In which, the market is posing the issue of green as number 1, quality as number 2, price as number 3. For a long time, enterprises have paid much attention to the issue of quality, competing on quality and price. Now if not "green", quality and price cannot solve the market problem.

“Europe will begin to require that all goods exported to Europe must report greenhouse gas emissions from 2026. Businesses that do not report cannot export to this market.

Thus, the entire production system of enterprises exporting to Europe is linked to quality and cost savings. Without a report on greenhouse gas emissions, it will become meaningless because it cannot be exported," Mr. Nghia emphasized.

Rice cultivation towards reducing costs and greenhouse gas emissions in the Red River Delta.

According to Mr. Nghia, this is like when we go to the market to sell meat, customers need clean meat but if we cannot provide clean meat, our products cannot be sold. The “green” factor has become an issue of the times – a new economic era where the “green” issue is put first.

This means restoring nature, protecting human health, leading to a trend of the whole world , not just Vietnam. Vietnam has no other way. This trend poses a lot of costs for businesses, even, some businesses do not have professional staff to solve the "green" factor.

Recommendations for businesses, Mr. Nghia said, businesses need to carefully study European regulations on "green" factors as well as carefully study Decree No. 06/2022/ND-CP dated January 7, 2022 of the Government regulating the reduction of greenhouse gas emissions and protection of the ozone layer; guiding circulars of the Ministry of Natural Resources and Environment, Ministry of Industry and Trade on how to calculate greenhouse gas emissions. This is extremely important.

“Currently, European taxes on greenhouse gas emissions are not high, but businesses that want to export there are required to have a report on these emissions. This report must be audited, like a financial report. Europe only likes an international auditing agency,” said Mr. Nghia.

According to Mr. Nghia, Vietnam currently has more than 60 enterprises reporting greenhouse gas emissions, but these are only pilot reports and have not been audited. The quality of the reports is still low and cannot pass European audits.

The only Vietnamese company currently recognized by Europe for reporting is Hoa Phat. This company had to hire an international consulting firm to prepare the report.

“The first problem for Vietnamese businesses today is how to quickly focus all resources on making emission reports. This report must comply with Government regulations (if selling in the domestic market) and with European regulations (if selling to the European market),” said Mr. Nghia.

Ha Anh

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