02/03/2021
|
Prologue: Based on the concept of “no trade-off between environment and economic growth”, the Draft Amendment of the Law on Environment Protection (LEP) 2014 has been fundamentally and comprehensively revised, from mindset, the approach to environmental management (risk management), to the addition of new management policies and tools... and Best Available Techniques (BAT) is one of the proposed additional tools in the Draft. Accordingly, BAT is universally understood as the best technology selected to ensure that it has practical relevance, economic efficiency and environmental pollution prevention and control ability. BAT has currently been regulated by many countries around the world and applied effectively and successfully in pollution prevention and control. BAT is a new issue in Vietnam, proposed to be legalized for the first time ever. However, in fact, BAT has been deployed and applied in a number of industries in our country due to the need of technology changes and the pressure of competition in the international market towards enterprises. BAT is a new issue. Although the application of BAT is both an opportunity and a challenge, it is truly necessary with an appropriate sequence, especially in the current context where environmental pollution is increasing, pollution tends to shift, technology is outdated, and we are facing the possibility of becoming a dumping ground for developed countries, etc. |
Việt Nam is stepping forwards a deeper integration and participation in global value chains. The Foreign Direct Investment (FDI) sector in Việt Nam now accounts for 70% of export value and nearly 30% of growth contribution. The impact of the new-generation Free Trade Agreements with high standards requires enterprises to convert to the best technology. The application of BAT in enterprises is an inevitable trend for the benefit of the enterprises itself as well as environmental protection. However, Việt Nam has a big gap of technology compared to the world; and the environment and policy institutions in Vietnam are still inadequate.
Currently, it is fairly common use of outdated technology of the 1980s and 1990s, which is the cause of significant industrial pollution with high emission factors. In addition, the policy environment is posing many issues that need to be adjusted for the sake of an effectively implementation of the BAT. Việt Nam currently has a large shortage of environmental market-based policies, as well as lack of mechanisms for coordination and decision-making among BAT stakeholders (ministries, sectors, and provinces); The major of Vietnamese enterprises are mostly medium, small to very small enterprises, with limited technological capabilities.
Based on analysis of international experiences, as well as the opinions of enterprises, the authors have given three BAT approaching scenarios in Việt Nam, including: Low scenario - baseline scenario; Medium scenario - Baseline scenario incorporating international BAT list; High scenario - baseline scenario combining international BAT list and new source.
Description of the scenarios
Low scenario: Principally, major countries are implementing BAT under a common guidance framework, technological information is mainly collected from local source, that is called as baseline scenario. Vietnam's first choice is based on the common traditional practices that other countries are doing. However, as Vietnam's starting point is different from other countries, the local best available techniques (BAT Vietnam) may still be a long way to catch up other countries. Therefore, the baseline scenario or the first choice of Việt Nam is called the low scenario.
Basically, the low scenario is implemented according to the common guidance framework being applied by countries, also known as the Sevilla process. Sevilla process consists of 3 basic steps: Technology information collection; Technology evaluation; building up of Criteria and Selection of BAT. Some countries have a further "choice of polluting sectors/activities" prior to the main process such as Russia, Korea. Resulted in Sevilla process, there will be BAT conclusions and BREF (BAT Reference Document). In EU, experts proposed the fourth step moving from the BREF to the permit/integrated condition”. The BAT conclusions will be included in the BREF. From the BREF, only the Emission Limit Value (ELV) is converted into a permit/integrated condition.
Medium scenario: Although the low scenario is applied in many countries, it is expected that there will be limitations in Việt Nam. To overcome this, the medium scenario proposes adding the international BAT list. Therefore, the medium scenario is integrated approach between the international BAT and local BAT. The goal is to get closer to international standards for pollution prevention and control.
High scenario: The high scenario is the medium scenario plus the BAT priority given to new sources. The new sources are first subjects to be applied BAT of International list prior to common and local use of BAT. Therefore, the high scenario is the integrated plan to solve the shortcomings of the previous scenarios.
Implementation steps
Basically, all three scenarios are built with the following steps: Selection of sectors/activities applying BAT; Collection of technology information; Evaluation of technology information; Setting up of criteria and selection of BAT and setting BREFs and permit/integrated conditions. In regard to sectors selection, there are 17 installations types possibly causing seriously environment pollution (specified in Decree No. 40/2019/ND-CP, dated May 13, 2019 of the Government on amendments to Decrees on guidelines for the LEP 2014) that is subjected to the application of BAT. However, in different scenarios there will be different approach.
Low scenario and its 5 implementation steps
Selection of sectors/fields applying BAT: 17 installation types are to be subjected to BAT application.
Collection of technology information: Following the guidance of the Organization for Economic Co-operation and Development (OECD), the steps to collect technology information include: Designing and sending questionnaires; collecting monitoring data; collecting data through expert meetings and associations; collecting data through research papers and other sources. The information content covers the technical, economic and environmental aspects of technology. In this step, the Ministry of Natural Resources and Environment will be the focal point for directing and coordinating with other stakeholders: Establishing Technical Working Groups (TWGs); Sending the questionnaire to the enterprises; Organizing technical group meetings. TWGs will decide the content and scope of the investigation.
Assessment of information technology: TWGs are mainly responsible for the assessment of technology information. Monitoring database and other research information/data were also gathered and reviewed. This step is a pre-selection or identification of potential technology to become a candidate of BAT.
Building up of criteria and BAT selection: To select BAT, BAT criteria are given by countries for its selection. Criteria can be set in the framework of Law/or Decree as in Russia or decided by TWGs (technical Working Group). Vietnam can refer to the guidance of the European Union (EU) on the process of determining conclusion on BAT, including the following steps: take-off meeting of the TWGs; Presentation of the Draft Conclusion for comments; TWG's Conclusion Meeting; Final BAT conclusion; Exchange forum; The National Council votes; Final Decision Making on BAT Selection. Conclusion on BAT describes the techniques selected as BAT and their expected environmental performance. Conclusion on BAT is a separate and independent product of the BAT determination process. Conclusion on BAT is the reference for establishing permit/license conditions (including ELVs). A final decision on BAT is included in the BREFs.
Setting BREFs and permit/license conditions: BREFs generally include the following information: General information about the field involved; Application techniques and processes; Current consumption and emissions; Techniques considered in BAT determination; Conclusion on BAT; Emerging technology; Comments on the conclusion and recommendations for future works; Some terms. The establishment of permit/license conditions can be found in the European Industrial Emissions Directive (IED).
Medium scenario
In this scenario, the implementation steps are the same as Low one above. Only technology information is collected and selected not only from local source but also from international BAT list.
Collection of technology information: In this step, two information collection processes will be conducted simultaneously: (i) Investigating and collecting of local technology information and (ii) collecting of information on the international BAT list.
Technology assessment / building up of criteria and BAT selection: A different thing in the medium scenario is that Vietnam's BAT list should include both domestic and international BAT. There will be two selection processes for domestic and international BAT with different criteria. The Ministry of Natural Resources and Environment (MONRE) will issue these selection criteria. After these selections, the BAT international and Vietnamese technical nominee lists will be mixed/formed into a general list.
Setting BREFs and permit/license conditions: The final conclusion on integrated BAT will be incorporated into the BREFs. The ELVs will be selected as the basis for establishing permit/license conditions. The BREF/conclusion on BAT and ELVs will also be submitted to the competent authority for approval. These standards/regulations will take effect not later than 6 months after being approved by the competent authority.
High scenario
The implementation steps are the same as above, but the new source selected from 17 installations list are subjects of BAT application first, with consideration given to the priority of certain pollutants, their size and location of application.
In the high scenario, BAT-based international standards are given priority to new sources. The scale and types of pollutants of which the BAT will be applied will be decided by the MONRE.
Impact of the scenarios
Low scenario
The low scenario is given the lowest expectation for the improvement of environmental quality, due to the application of low standardized domestic BATs, based on domestic technological information. There is a significant gap between the best available techniques local and international. In terms of implementation, the low scenario may be more favorable because many countries have applied it. On the positive side, the low scenario has certain impacts on the policy system and enterprises’ awareness. The implemented scenario will clarify the reality of domestic production and technology. In particular, Vietnam's ELVs have a chance to compare with international ones in the same industries/fields of production. Therefore, enterprises will be aware of where they are, the goals they need to aim for, and better understanding of the difficulties that they will faced in the process of management and technology innovation to meet new requirements.
Medium scenario
The medium scenario has many positive points compared to the low scenario, bringing the emission limit values closer to the international regulations. However, this will also lead to greater investment costs, which are beyond the capabilities of parts of enterprises.
Due to international BAT application, the scenario will lead to the status of having two existing standards. Some leading companies apply BAT-based international standards, while the rest follow a backward schedule, corresponding to lower standards. Therefore, the policy for one target group will be distinct from the other. The medium scenario creates a technology gap in the country, positively impacting the process of competition and technology innovation. In the context of integration, the application of standards close to international BAT will be a necessary preparatory step to create new factors and competitiveness within the country.
High scenario
The high scenario will have a great impact on enterprises, firstly for newly invested enterprises/large-scale new sources, new sources of FDI and 17 polluting production types. Vietnam’s new sources are major technology imported ones which originally are subject to international standards at the place of origin. The Government will consider the subjects of application, propose policies to support enterprises, and encourage positive trends in BAT implementation.
The high scenario will also be the basis for establishing new competition policies and environmental market-based policies in line with international integration trends, paving the way for new widespread technological innovation and new high-tech transfer from developed countries to Việt Nam. At the same time, the high scenario step by step brings international BAT standards into the list of Việt Nam in accordance with the integration trend toward the principles of equality, discrimination and green growth in the world.
Today, BAT is recognized as a dominant policy tool. The implementation of the BAT policy will bring many benefits to Vietnamese enterprises. The inclusion of BAT regulations in the LEP (amended) is a necessary new step for the future. Việt Nam needs to soon select appropriate scenarios, issue a roadmap for enterprises to participate in BAT implementation.
Lê Minh Đức
Vietnam Environmental Industry Association
Nguyễn Thị Hồng Lam
Environmental Science Institute
