greenhouse gases 03/08/2026

What Is a Low Emission Zone? Impacts and What Businesses Need to Prepare

Hanoi’s implementation of low emission zones marks a shift in urban transport management, from controlling vehicles by category to regulating them based on fuel type, age, and emission levels.

So, what is a low emission zone, which types of vehicles may be restricted, and how will this policy affect business operations?

For transport, logistics, delivery, and retail businesses, as well as companies that operate their own vehicle fleets, this is more than a transport issue. The low emission zone roadmap may directly affect delivery times, transport routes, fuel costs, customer accessibility, and vehicle investment plans.

Businesses should therefore promptly review their transport operations, standardise fuel and emissions data, and develop an appropriate transition plan for each stage of implementation.

What Is a Low Emission Zone?

A Low Emission Zone, commonly abbreviated as LEZ, is a designated area in which measures are applied to restrict polluting vehicles, thereby helping improve air quality.

Within a low emission zone, vehicles may be controlled based on one or more factors, including:

The type of fuel used by the vehicle.
The year of manufacture or import.
The applicable emissions standard.
The vehicle’s gross weight.
Its intended use.
Its operating hours and permitted area.

High-emission vehicles may be restricted or prohibited from travelling within certain areas and during specific periods. By contrast, clean-energy vehicles, public transport vehicles, and vehicles that comply with emissions requirements may be given priority or permitted to operate.

A low emission zone does not mean that all petrol- or diesel-powered vehicles will be immediately banned. Measures will be implemented according to the designated area, vehicle category, operating hours, and roadmap approved by the competent authorities.

How Do Low Emission Zones Affect Businesses?

Source: Hanoi City People’s Committee Electronic Information Portal

The implementation of low emission zones may directly affect businesses involved in:

Passenger and freight transport.
Logistics and delivery services.
Ride-hailing and delivery services operated through digital platforms.
Hotels, restaurants, retailers, and service providers located in central areas.
Operating vehicle fleets for employees, customers, or internal transport.
Working with suppliers that regularly deliver goods into restricted areas.

Regulations concerning operating hours, vehicle weight, fuel type, and emissions standards may affect delivery schedules, transport routes, customer accessibility, and operating costs.

Businesses need to monitor the scope of application during each phase to avoid operational disruption as vehicle-control measures are expanded.

What Should Businesses Prepare Before the Low Emission Zone Roadmap Is Implemented?

Review the Vehicle Fleet

Businesses need to compile information on:

The number of vehicles owned or leased for operation.
Vehicle types and fuels used.
Year of manufacture or import.
Gross vehicle weight.
Fuel consumption.
Operating frequency and geographical coverage.
Routes that regularly pass through low emission zones.
Applicable emissions standards, where verified data are available.

This review will help identify vehicles at risk of being restricted and support the development of suitable replacement plans.

Adjust Transport and Delivery Plans

Businesses need to reassess:

Goods delivery and collection hours.
Transport routes.
Consolidation and transshipment points.
The types of vehicles used in each area.
The possibility of consolidating multiple orders into a single journey.
The possibility of hiring transport providers that meet emissions requirements.

Making adjustments early can help reduce waiting times, delivery delays, and additional costs when vehicle access is restricted during specific hours.

Develop a Fleet Transition Roadmap

Businesses do not necessarily need to replace their entire fleet at the same time. The transition should prioritise vehicles that:

Are relatively old.
Consume large amounts of fuel.
Generate high maintenance costs.
Frequently operate within low emission zones.
Are at risk of failing to meet emissions standards.
Travel distances that are suitable for electric vehicles.

The transition plan should be assessed based on total cost of ownership, charging infrastructure, operational requirements, payback periods, and the ability to maintain uninterrupted operations.

Businesses Need to Proactively Manage Emissions Data

The establishment of low emission zones indicates that data on vehicles, fuels, and emissions will play an increasingly important role in corporate management.

Instead of collecting data only when reporting is required, businesses should treat emissions data as part of their operational data systems.

The information that needs to be managed includes:

The number and types of vehicles.
Types of fuel used.
Fuel consumption.
Distance travelled.
Transported load.
Vehicle year of manufacture.
Vehicle inspection and emissions-testing results.
Fuel, maintenance, and operating costs.
Corresponding greenhouse gas emissions.
The proportion of vehicles using clean energy.

Data should be stored systematically, updated periodically, and supported by documentary evidence such as fuel invoices, journey logs, GPS data, vehicle inspection records, and data provided by transport service providers.

Read more: E10 Petrol: Biofuel Contributing to Greenhouse Gas Emissions Reduction

What Are the Benefits of Managing Emissions Data?

Comprehensive management of vehicle and fuel data helps businesses:

Identify vehicles with high fuel consumption and emissions.
Assess the risk of restrictions as low emission zones expand.
Select vehicles that should be prioritised for replacement.
Optimise routes and transport schedules.
Control fuel costs.
Assess the effectiveness of investments in electric vehicles.
Monitor the results of emissions-reduction measures.
Prepare data for greenhouse gas inventories.
Support ESG reporting and supply-chain requirements.

Reliable data enable businesses to make transition decisions based on actual performance instead of replacing vehicles across the entire fleet based on subjective assumptions.

Integrating Transport Data with Greenhouse Gas Inventories

For vehicles owned or controlled by a business, fuel consumption may generate direct greenhouse gas emissions.

For outsourced transport activities, emissions may be considered within the value chain, depending on the inventory boundaries and reporting standards applied.

Businesses should connect transport data with their greenhouse gas inventory systems to:

Avoid collecting the same data repeatedly.
Standardise emission factors and calculation methods.
Monitor emissions across reporting periods.
Compare performance between different routes and vehicles.
Set measurable emissions-reduction targets.
Prepare reports that can be reviewed and verified.

This integration is particularly important for manufacturers, distributors, logistics providers, retailers, and businesses with extensive transport supply chains.

Explore Net Zero 2050’s Greenhouse Gas Inventory Solutions

Turning Compliance Requirements into Opportunities for Operational Optimisation

Low emission zones may create initial transition costs, but they also encourage businesses to review the efficiency of their transport operations.

Through data analysis, businesses may identify:

Vehicles that frequently operate below capacity.
Duplicated routes.
A high proportion of empty vehicle journeys.
Abnormal fuel consumption.
Low-performing transport providers.
Journeys that can be consolidated or transferred to cleaner vehicles.

Managing emissions data therefore supports not only compliance with environmental policies but also cost reduction, improved logistics efficiency, and greater business adaptability.

Where Should Businesses Start?

Businesses can proceed through four steps:

Step 1: Define the Scope

Prepare a list of owned vehicles, outsourced vehicles, transport routes, and activities related to low emission zones.

Step 2: Collect and Standardise Data

Compile data on fuel consumption, distance travelled, transported load, vehicle inspection, year of manufacture, and operating costs using a consistent structure.

Step 3: Calculate and Analyse Emissions

Convert activity data into emissions figures to identify the vehicles and journeys with the greatest impacts.

Step 4: Develop a Transition Plan

Select appropriate measures, such as replacing vehicles, optimising routes, adjusting delivery times, using green transport providers, or transitioning to clean energy.

Net Zero 2050 Supports Businesses in Managing and Reducing Emissions

Net Zero 2050 provides the following solutions:

Greenhouse gas inventories in accordance with ISO 14064.
Collection and standardisation of emissions data.
Assessment of emissions from fuels, vehicles, and transport activities.
Identification of material emission sources.
Development of emissions-reduction roadmaps and plans.
Consulting on vehicle transition and transport optimisation.
Digitalisation of data for management, greenhouse gas inventories, and ESG reporting.

Contact CIC’s experts today for advice on data-management solutions and the development of an emissions-reduction roadmap suited to your business operations.

CIC Construction Technology and Consultancy Joint Stock Company

Head Office: 4th Floor, VG Building, No. 235 Nguyen Trai Street, Khuong Dinh Ward, Hanoi
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