Time: 12/2024

By: Center for WTO and International Trade - VCCI

The Carbon Border Adjustment Mechanism (CBAM) is one of the policies of the European Union (EU) to promote the green production transition, towards the goal of neutralizing greenhouse gas emissions (net-zero) of this Bloc. According to this Mechanism, some specific types of goods belonging to 06 highly polluting groups (including cement, iron and steel, aluminum, fertilizer, electricity and hydrogen) when imported into the EU will have to declare and purchase carbon certificates for the amount of greenhouse gases emitted into the environment during the production process of those goods in the exporting country. Therefore, CBAM is also commonly known as the "carbon border tax".

Applied from October 2023, CBAM is currently in a transitional period, EU importers must fulfill the obligation to declare the amount of emissions of goods according to regulations. From 2026 onwards, imported goods subject to adjustment will have to both declare and purchase CBAM certificates for the goods. Currently, the EU's application of CBAM has a direct impact on enterprises producing and exporting some types of cement, steel, aluminum, and fertilizer to the EU.

This Handbook was prepared by the WTO and Integration Center (VCCI) to introduce the most basic and core contents of CBAM to Vietnamese manufacturing and exporting enterprises.

Hopefully, the Handbook will be a useful reference document for enterprises exporting related goods to the EU to effectively respond to this new regulation, thereby contributing to sustainable exports to the EU market.

Readers who need to see the entire Handbook of the European Union Carbon Border Adjustment Mechanism, please contact Ms. Nguyen Thanh Tra, Center for WTO and International Trade - VCCI, Phone number: 024-35771458, Email address: trathanhvcci@gmail.com.

The table of contents of the publication is attached below:

• Handbook of the European Union Carbon Border Adjustment Mechanism - Table of contents

• Report: Vietnamese enterprises in the context of U.S. reciprocal tariffs: Adverse impacts and policy support recommendations
• Report: "The supply chain due diligence requirements of European markets and the impact on Viet Nam’s exports"
• Vietnam Import - Export Report 2024
• Handbook of Trade Remedies in Australia