At a workshop seeking input on the draft decree concerning the Extended Producer Responsibility (EPR), Nguyen Thanh Yen, a representative from the Department of Environment (Ministry of Agriculture and Rural Development), stated that the latest draft separates rechargeable batteries into two categories: those not used for electric vehicles and those specifically for electric vehicles. The May draft combined both categories.
While the previous draft mandated an 8% recycling rate for all rechargeable batteries, the new draft sets the mandatory recycling rate for electric vehicle batteries at 0%. The 8% rate remains for batteries not used in electric vehicles.
Yen explained that this change reflects feedback from several automobile businesses and transportation associations. "For the first three years, starting in 2026, there will be no mandatory recycling rate for rechargeable electric vehicle batteries until the environmental agency identifies battery waste in the environment. At that point, a rate will be established," Yen said.
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Nguyen Thanh Yen from the Department of Environment discusses the changes in the draft decree. Photo: Gia Chinh |
Nguyen Thanh Yen from the Department of Environment discusses the changes in the draft decree. Photo: Gia Chinh
A similar change applies to lubricating oils. The previous draft proposed a 15% mandatory recycling rate for all lubricating oils. The current draft sets the rate for transmission and lubricating oils at 0%, maintaining the 15% rate for engine oil.
Previously, during a feedback session on 19/6, a representative from TotalEnergies, a company with 30 years of experience in energy and lubrication technology, explained that they are currently responsible for recycling 15% of engine oil. However, applying the same waste code to transmission and hydraulic oils could burden them with all oil waste, significantly increasing costs. This is a major concern regarding the expansion of recyclable product categories.
TotalEnergies estimates a potential 33% cost increase if EPR extends to all lubricating oils. According to S&P Global, Vietnam's total lubricant production in 2024 was 467,000 tons, with engine oil accounting for 349,000 tons. With a 15% recycling rate, the recycling obligation would increase from 52,000 to 70,000 tons if the scope expands.
Ho Kien Trung, Deputy Director of the Department of Environment, shared that since the introduction of regulations, decrees and circulars have essentially completed the legal framework for implementing EPR. The EPR policy has been gradually put into practice and rigorously implemented, contributing to the promotion of recycling and waste treatment towards sustainability.
"However, practical implementation has shown that EPR is a new policy, and some regulations still need clarification and adjustments. To address these issues, the Ministry is developing a separate decree for this policy," Trung said, adding that they will continue to gather feedback. The new decree aims to create a transparent, feasible, and practical legal framework for environmental management in the new phase.
In Vietnam, the Extended Producer Responsibility (EPR) policy was formalized in the 2020 Law on Environmental Protection, further detailed in Government Decree 08 and Decision 450.
Gia Chinh
