Vietnam likely to be impacted by EU carbon tax
VOV.VN - The Trade Office of Vietnam in the Netherlands said that the EU-imposed carbon tax may have a direct impact on several categories of Vietnamese industrial products exported to the EU.
The EU is set to begin use of the Carbon Border Adjustment Mechanism (CBAM) this October.
Under the new rules, the bloc will impose a carbon tax on all goods exported to the market based on the intensity of greenhouse gas emissions in the production process.
The mechanism will therefore start with commodities with higher carbon footprints, including steel, cement, fertiliser, aluminum, and electricity, which together accounts for 94% of the continent's carbon emissions.
The Trade Office of Vietnam in the Netherlands noted that Vietnamese steel, aluminum, cement, and fertiliser products exported to the EU may be subject to changes.
Accordingly, importers will have to report emissions contained in imported goods. In the event that the emissions exceed EU standards, they will then have to buy "emissions certificates" at current carbon prices set by the EU.
Last year witnessed Vietnamese steel exports to the EU reach 1.3 million tonnes while aluminum exports stood at US$307 million. Fertiliser and cement exports to the EU account for 1% of total exports of these two commodities.