Towards Low Carbon Trade - Is the ASEAN Region Ready?
ITC is hosting a webinar on 11th May 2023, from 8:00-10:00 am CET, focusing on the EU’s Carbon Border Adjustment Mechanism (CBAM) and Carbon policies, and its potential impacts in ASEAN nations.
For context, In December 2022, the European Parliament and Council reached an agreement on the Carbon Border Adjustment Mechanism (CBAM) and reform of the European Union (EU) Emissions Trading Schemes (ETS). In April 2023, the European Parliament approved the final text, which means that it will enter into law upon formal Council approval. This initiative is being implemented as a tool to deal with carbon leakage – i.e. to prevent shifting emissions to other countries as a means of to overcome the high domestic prices set within the EU. However, product coverage under the final agreement goes beyond those initially proposed by the European Commission; and there are expectations to include indirect emissions of more products, and broaden the scope of products covered.
These carbon regulatory measures may pose market access risks for exports from developing countries, but compliance with these requirements can actually present opportunities for businesses to become more competitive players in the market. The ASEAN region is a dynamic market ranking as one of the top eight economies in the world; and the EU’s third largest trading partner, after the US and China. Implementation of the EU CBAM will have implications on the value chains of ASEAN Member States (AMS). Accordingly, maintaining market access to the EU and other target markets would require rapid and effective measures by AMS to realign policy frameworks and prepare the private sector to be able to compete effectively in these markets.
This webinar, thus, seeks to take stock of the developments taking place in the EU and other jurisdictions in terms of operationalising these carbon border adjustment measures, discuss its potential impact on trade from the ASEAN region, and explore the tools that can be leveraged by AMS’ at the national and potentially at the regional level - to prepare for this transition to carbon competitive supply chains.