Carbon tax poses new challenge for VN to boost exports to EU

The EU-Vietnam Free Trade Agreement (EVFTA) is an agreement inclined towards sustainable development. The EU’s CBAM (Carbon Border Adjustment Mechanism) has posed a new challenge for Vietnam’s exports to enter the EU market.

CBAM will be valid for the transitional period with an aim to control the volume of carbon to be discharged to the environment during the production of all imports to the EU. This is a policy tool of the EU which imposes a carbon tax on all the products to be imported to the EU, depending on greenhouse gas emissions during production in export countries. For most Vietnamese enterprises, CBAM is a new mechanism.

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Luong Bang