PETALING JAYA: Global trade growth is being challenged on various fronts, which may hinder easy growth moving forward.
Apart from the ongoing trade tensions, stricter regulations on carbon emissions may pose new challenges to global trade.
Kenanga Research noted these regulations were from the United Nations’ International Maritime Organization (IMO) and another from the European Union (EU).
“While the exact implications of the regulations of the IMO and EU’s Carbon Border Adjustment Mechanism on the seaport and logistics sectors remain unclear as it was enforced from Jan 1, 2026, the volume of containers heading to the EU will certainly be affected – which is about 18% of container throughput under the Asia-Europe trade for Westports Holdings Bhd
,” it said.
This is especially so for those originating from China, it noted, adding that this is a major exporter of iron, steel and aluminium to the EU.
Accordingly, ships must record a 2% annual improvement in their carbon intensity up to 2030 or face being removed from service. Full enforcement of these regulations supposedly began at the beginning of this year, after a transitional period which was from 2023 to 2025.
“As full enforcement begins, this requires authorised importers to buy and surrender certificates for emissions. The scope is expected to expand to downstream products such as machinery and vehicles by 2028,” Kenanga Research noted.
An industry insider said there should be some practicality embedded into any new regulations that may curb trade, given the various challenges it is facing at the moment.
