Enterprises must prepare for CBAM

Vietnam, which has an economy heavily reliant on coal, has committed to reaching net-zero carbon emissions by 2050. - Photo - The Straits Times/ANN

HANOI: The European Union (EU)’s Carbon Border Adjustment Mechanism (CBAM), which is set to take effect in 2024, will impact production and trade activities of Vietnamese manufacturers, especially in high carbon emission industries like iron and steel, aluminium and cement, as well as the whole economy, experts say.

The mechanism, just updated by the EU and the European Parliament this February, is created to make a fair playing field for European businesses facing carbon prices by imposing a carbon border tax on imports from countries that do not apply equivalent carbon pricing measures.