EU’s Carbon Border Adjustment Mechanism brings both challenges, opportunities
The European Union (EU)’s Carbon Border Adjustment Mechanism (CBAM) transition period will begin on October 1, 2023, and from 2026 this program is expected to become permanent.
According to the mechanism, businesses have to report the amount of greenhouse gases in their imported goods, if this emission level exceeds EU standards, they have to purchase carbon credits equal to those bought by an EU company to cover the emissions embedded in their products. Vietnam is the 11th largest partner in terms of goods imported into the EU, so many industries will be significantly affected.
Translated by Hong Son
