Adapting Thai Businesses and Industries
Preparing for CBAM Measures Ahead
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To achieve the 2050 Net Zero goal, Europe has implemented the European Green Deal, which includes the Carbon Border Adjustment Mechanism (CBAM). This mechanism aims to adjust the carbon pricing of imported goods.
CBAM will be effective for the first period from 1 Oct. 2023 – 31 Dec. 2025 (transition period). Importers must report information on the volume of imported goods. and carbon emissions in the production process. Importers must apply for CBAM Declarant status and Thai entrepreneurs (exporters) must register in the CBAM Registry system by December 31, 2024. Moreover, the importer will be required to purchase CBAM certificates based on the real volume of carbon emissions in the production process since January 1, 2026 onwards.
The Fee of greenhouse gas emissions will be charged on imported products for 6 categories; steel, aluminum, cement, fertilizer, electricity, and hydrogen (including nots and screws which made from steel and aluminum cables). Therefore, the manufacturer and exporter who need to export their products, to the European Union are required to measure and prepare a report on the amount of carbon emissions in the production process (Carbon Footprint). Encouraging to push up the partners to plan and develop “the low-carbon production process”, such as improving the efficiency of machine in the production process, including increasing the proportion of renewable energy usage. Prepare all for the CBAM.
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