Tiếng Việt
The European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM), expected to take effect in 2026, will impose import fees on products such as steel, cement, and electricity, based on the CO2 emissions generated during their production.
According to the Asian Economic Integration Report (AEIR) 2024, recently published by the Asian Development Bank (ADB), the EU’s import fees on carbon-intensive products will have a slightly negative impact on economies in Asia and the Pacific. However, this measure is anticipated to help mitigate climate change.
These fees aim to reduce carbon leakage, which occurs when polluters shift production from countries with strict regulations or high carbon prices to those with more lenient rules or lower prices.
CBAM is projected to reduce global carbon emissions by less than 0.2% compared to an emissions trading mechanism with a carbon price of €100 (USD 108) per ton and without a carbon tax.
Subregions in Asia, particularly Central and West Asia, with a higher share of carbon-intensive exports to Europe, are expected to face more significant negative effects from CBAM and the EU’s emissions trading system. Developing economies in Asia will require suitable incentive mechanisms to promote widespread adoption of carbon pricing.
The report also recommends measures for decarbonizing international trade and global value chains. These include:
- Implementing targeted policies to encourage the trade of climate-friendly products and services.
- Supporting environmental regulations and standards.
- Facilitating the transfer of green technologies.
- Assisting governments and international organizations in promoting investments and green infrastructure.
Source: Compiled by NGO
