A worker monitoring the smelting furnace in a Hoa Phat's steel mill. Vietnam exported 2.31 million tonnes of steel to the EU in the first eight months of 2023. (Photo: VNA) Hanoi (VNS/VNA) - The EU's effort to cut carbonemissions globally is going into high gear as the bloc's Carbon BorderAdjustment Mechanism (CBAM) entered its transitional phase on October 1.
As of October 1, the EU's trading partners will have to reportgreenhouse gas (GHG) emissions embedded in six carbon-intensive exports, whichconsist of steel, cement, aluminium, fertiliser, hydrogen, andelectricity.
From 2026, they will also be required to purchase CBAMcertificates to cover the GHG footprint, and the prices of CBAM certificateswill be calculated based on the weekly average auction price of EU ETSallowances.
Nguyen Hoa Cuong, Vice Director of the Central Institute forEconomic Management, said Bangladesh's staggering growth in apparel exportsover the past few years speaks volumes about how "going green"has paid off commercially.
He urged Vietnam to take action to keep its industrieswell-prepared for the tax regime. He said meeting CBAM requirements would serveVietnamese producers well by allowing their products to be sold at a higherprice in the EU markets.
"It's all about not being left behind in the global greensupply chains," said Cuong.
Nguyen Van Hoi, General Director of the Vietnam Institute ofStrategy and Policy for Industry and Trade, said reports on GHG emissions hadbecome compulsory for Vietnamese steel producers, whose exports to the EU haddoubled in volume in the first eight months of 2023.
He also said CBAM would initially apply to certaincarbon-intensive exports but would expand in scope in the long term to coverproducts in other sectors, including food and energy.
He called for financial packages to support Vietnamese enterprisesin capability-building and transition to greener technologies. He also urgedenterprises to improve their energy efficiency and cut back on carbonemissions to get the go-ahead to the EUmarkets.
Economic expert Vu Dinh Anh said carbon certificates were underdevelopment in Vietnam and would come into force in the near future. He alsosaid the EU's green regulations would incentivise Vietnamese enterprises to gogreen and promote legal changes that work in favour of the environment.
A team of researchers from the University of Economics andBusiness was concerned that CBAM would incur huge carbon-emission-linked coststo Vietnamese enterprises on the horizon.
The team called for measures to help them cut back on carbonemissions, thereby improving the competitive advantages of their products inthe EU markets. It also urged policymakers to bring them up to speed on the taxregime and called for a mechanism for carbon pricing in Vietnam./.
As of October 1, the EU's trading partners will have to reportgreenhouse gas (GHG) emissions embedded in six carbon-intensive exports, whichconsist of steel, cement, aluminium, fertiliser, hydrogen, andelectricity.
From 2026, they will also be required to purchase CBAMcertificates to cover the GHG footprint, and the prices of CBAM certificateswill be calculated based on the weekly average auction price of EU ETSallowances.
Nguyen Hoa Cuong, Vice Director of the Central Institute forEconomic Management, said Bangladesh's staggering growth in apparel exportsover the past few years speaks volumes about how "going green"has paid off commercially.
He urged Vietnam to take action to keep its industrieswell-prepared for the tax regime. He said meeting CBAM requirements would serveVietnamese producers well by allowing their products to be sold at a higherprice in the EU markets.
"It's all about not being left behind in the global greensupply chains," said Cuong.
Nguyen Van Hoi, General Director of the Vietnam Institute ofStrategy and Policy for Industry and Trade, said reports on GHG emissions hadbecome compulsory for Vietnamese steel producers, whose exports to the EU haddoubled in volume in the first eight months of 2023.
He also said CBAM would initially apply to certaincarbon-intensive exports but would expand in scope in the long term to coverproducts in other sectors, including food and energy.
He called for financial packages to support Vietnamese enterprisesin capability-building and transition to greener technologies. He also urgedenterprises to improve their energy efficiency and cut back on carbonemissions to get the go-ahead to the EUmarkets.
Economic expert Vu Dinh Anh said carbon certificates were underdevelopment in Vietnam and would come into force in the near future. He alsosaid the EU's green regulations would incentivise Vietnamese enterprises to gogreen and promote legal changes that work in favour of the environment.
A team of researchers from the University of Economics andBusiness was concerned that CBAM would incur huge carbon-emission-linked coststo Vietnamese enterprises on the horizon.
The team called for measures to help them cut back on carbonemissions, thereby improving the competitive advantages of their products inthe EU markets. It also urged policymakers to bring them up to speed on the taxregime and called for a mechanism for carbon pricing in Vietnam./.
VNA
