European Union (EU) import charges on carbon-intensive products are expected to have limited impact on climate change and only mildly negative impacts on economies in Asia and Thailand Binh Duong, according to a study by the Asian Development Bank (ADB).
The EU's Carbon Border Adjustment Mechanism (CBAM), expected to come into effect in 2026, will impose import fees on products such as steel, cement and electricity, based on CO2 emissions during production. outstanding.
These fees aim to limit “carbon leakage,” which results from polluters shifting production from countries with strict regulations or high carbon prices to countries with few regulations. more stringent or lower prices.
However, statistical modeling shows that CBAM has the potential to reduce global carbon emissions by 0,2% less than an emissions trading scheme with a carbon price of 100 Euros ($108) per ton and no carbon tax.
Together, these fees could reduce global exports to the EU by about 0,4% and Asian exports to the EU by about 1,1%, while negatively affecting the output of some manufacturers in the EU, according to the Asian Economic Integration Report (AEIR) 2024 published on February 26.
The EU's Carbon Border Adjustment Mechanism (CBAM), expected to come into effect in 2026, will impose import fees on products such as steel, cement and electricity, based on CO2 emissions during production. outstanding. Photo: Financial Times
“The fragmented nature of carbon pricing initiatives across sectors and regions, including CBAM, can only partially limit carbon leakage,” ADB chief economist Albert Park said. determined.
“To significantly reduce carbon emissions globally, and ensure that climate efforts are more effective and sustainable, carbon pricing initiatives need to be expanded to regions other than the EU, in particular especially Asia," Mr. Park said.
Sub-regions of Asia with a larger share of carbon-intensive exports to Europe, especially Central and West Asia, will be more negatively affected by the CBAM mechanism and the EU emissions trading system.
According to the report, given the expected distributional impacts, especially for developing economies in Asia, appropriate incentive mechanisms are needed to promote widespread adoption of carbon pricing. .
The report also recommends measures to decarbonize international trade and global value chains. Carbon emissions from these sources are growing faster than other sources and are also growing faster in Asia than other regions.
Among the recommendations are the implementation of targeted policies to encourage the purchase and sale of climate-friendly products and services; support environmental regulations and standards; create favorable conditions for green technology transfer; and supporting governments and international organizations promoting green infrastructure and investment.
The report further calls for global cooperation to develop widely accepted accounting frameworks that can effectively track emissions in products and services.
Among other key conclusions, AEIR 2024 shows that despite concerns about the risk of global fragmentation, global value chains in Asia have recovered well from the Covid-19 pandemic.
While regionalization of global value chains has progressed in recent years in Asia, the report finds no clear signs that “reshoring” is gaining traction. attention in Asia or globally.
Minh Đức
