Stronger environmental law, smarter emissions control

Four core pillars of the draft Law on Environmental Protection

On June 5, at the National Environment and Climate Forum themed “From Policy to Action,” Dr. Tang The Cuong, Director General of the Viet Nam Environment Agency, presented key revisions proposed in the draft law amending and supplementing several provisions of the 2020 Law on Environmental Protection.

According to Dr. Tang The Cuong, more than five years after its implementation, the 2020 Law on Environmental Protection has brought significant improvements to state environmental management through tools such as environmental permits, extended producer responsibility (EPR), and the carbon market.

However, Viet Nam has entered a new phase of development. The current context requires rapid and sustainable growth, digital transformation, green transition, and a circular economy, so several existing regulations have fallen behind practical demands. Viet Nam is also facing the challenge of fulfilling its international climate commitments, including achieving net-zero emissions by 2050. This is one of the major drivers behind the latest revision of the law.

The draft inherits the foundations of the 2020 Law on Environmental Protection while incorporating directions related to sustainable development, green transition, digital transformation, and stronger decentralization. It proposes amendments to 82 of the current law’s 171 articles and introduces two new articles.

One of the largest groups of amendments focuses on administrative reform and greater decentralization to local authorities. The draft proposes abolishing nine administrative procedures, including seven at the ministerial level and two at the provincial level. The changes are expected to reduce processing times and compliance costs for citizens and businesses by more than 52%.

Notably, the draft revises environmental project classification criteria, reducing categories from four groups to three. As a result, the number of projects that would require environmental impact assessments (EIAs) and obtain environmental permits would be reduced by more than 90%.

Experts view this as a significant shift in environmental governance, moving from broad pre-approval controls toward risk-based management. Instead of imposing administrative controls on a large number of projects, authorities would concentrate resources on activities with higher pollution risks.

The draft also strengthens decentralization, assigning 96% of EIA appraisal activities and 95% of environmental permit issuance to local authorities. A one-stop mechanism is also proposed to allow environmental procedures to be processed simultaneously with investment and construction procedures.

Another notable area of revision concerns waste management and the development of a circular economy. The draft introduces Article 72a on the management of recycled materials and products recovered from waste streams, with the aim of developing secondary raw material markets. Under this approach, waste is no longer viewed solely as a disposal issue but increasingly as a valuable input for production activities.

The Government would establish a roadmap for mandatory recycled material content in selected sectors while continuing to refine the extended producer responsibility (EPR) mechanism. Incentives and support policies for circular economy development are also proposed to encourage integration into sectoral and local strategies and planning.

From emissions reduction to emissions management

From Dr. Tang The Cuong’s point of view, digital transformation is a cross-cutting theme throughout the draft law.

The draft requires waste-generating facilities to provide and regularly update electronic data and to establish a unified digital waste management system. Real-time data would be used to monitor and trace waste flows, gradually forming a system for emissions registration and pollutant transfer management.

In the field of environmental quality management, the draft introduces a more proactive approach focused on forecasting and pollution prevention rather than reactive responses.

As for air quality management, the draft adds provisions on air pollution forecasting, emissions and particulate inventories, and stricter controls on transportation-related emissions. These measures are considered particularly important, as air pollution, especially fine particulate matter in major cities, has become a growing public concern.

Regarding surface water, environmental carrying capacity regulations have been revised to allow greater flexibility. Meanwhile, provisions on soil quality management are updated to clarify the scope of investigations and assessments serving state land management functions.

One of the most closely watched changes concerns climate change and greenhouse gas management. The draft shifts the focus from “emissions mitigation” to “emissions management” and shortens the greenhouse gas inventory cycle to annual reporting via online systems.

It also introduces Article 139a on the international exchange of emissions-reduction outcomes and carbon credits, and clearly defines the management framework for carbon trading platforms. This is regarded as a critical legal step toward establishing and operating Viet Nam’s domestic carbon market in the coming years.

“The draft law is still undergoing public consultation and refinement, with particular attention to improving post-inspection effectiveness through risk-based governance, strengthening oversight mechanisms under decentralization, enhancing the feasibility of digital transformation in environmental management, and mobilizing social resources for environmental protection, circular economy development, and green growth,” Dr. Tang The Cuong said.