New update on Implementation of Environmental Protection Fee for Industrial Emissions – Decree No. 153/2024/NĐ-CP

According to Clause 2 and 3, Article 136 of the Law on Environmental Protection, the principle requires entities that cause environmental pollution to bear the associated costs. Additionally, environmental protection fees are applicable to activities involving the discharge of waste into the environment.

On 21 November 2024, the Government issued Decree No. 153/2024/NĐ-CP, stipulating implementing an environmental protection fee for industrial emissions. Effective 5 January 2025, this Decree aims to promote sustainable industrial practices by holding facilities accountable for their environmental impact.

Scope of Application

The environmental protection fee applies to industrial facilities that release dust and gaseous pollutants into the environment. As stipulated by this Decree, the owners or operators of the facilities generating the emissions are responsible for paying this fee.

Fee Structure

Pursuant to the Law on Fees and Charges, and to ensure consistency with the regulations on environmental protection fees for industrial wastewater under Decree No. 53/2020/NĐ-CP, Decree No. 153/2024/NĐ-CP establishes the environmental protection fee framework for emissions in Article 6, which consists of two components of fix fee and variable fee. 

Fixed Fee:

A fixed fee applies to all facilities discharging emissions to cover the costs of treating substances other than the four specified pollutants (Total Dust, NOx, SOx, and CO).

The fixed fee rate (f) is set at 3,000,000 VND per year.

This fee applies to both:

• Facilities discharging emissions that are not required to conduct emission monitoring, and

• Facilities discharging emissions that are required to conduct emission monitoring.

Additionally, for facilities that begin operations on or after 5 January 2025, or are already operational prior to 5 January 2025, the payable fee will be calculated using the following formula:

Payable Fee = (f/12) x Fee Calculation Period (in months)

Variable Fee:

An additional variable fee applies to facilities required to conduct emission monitoring. This fee specifically targets the four pollutants: Total Dust, NOx, SOx, and CO.

Facilities required to perform emission monitoring will pay fees based on the type and volume of pollutants emitted. The Decree specifies pollutant categories and corresponding fee rates to ensure accurate calculations as follows:

Procedures for Declaration and Payment

Fee declarations must be submitted quarterly or annually, following the formats and timelines detailed in the Decree. Accordingly, payments are to be made to the designated government authority as per the schedule outlined in the declaration.

Implementation and Compliance

The Ministry of Natural Resources and Environment, in collaboration with relevant agencies, is tasked with guiding and overseeing the implementation of this Decree. Industrial facilities are encouraged to adopt emission-reduction measures to minimize financial liabilities and contribute to environmental sustainability.

Conclusion

The primary objective of Decree No. 153/2024/NĐ-CP is to incentivize the adoption of cleaner production technologies and reduce air pollution by imposing financial obligations on emission-producing entities. This initiative is part of the Government's broader commitment to environmental protection and sustainable development.

Disclaimer

This Newsletter contains only brief notes and includes legislation in force as of January 2025. The information herein is general and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one is entitled to rely on this information, and no one should act on such information without appropriate professional advice obtained after a thorough examination of the particular situation.