The EU’s Carbon Border Adjustment Mechanism (CBAM): Implications for ASEAN-EU Relations

The EU’s Carbon Border Adjustment Mechanism (CBAM): Implications for ASEAN-EU Relations

Melinda Martinus ; Kanin Laopirun

Format: Print Book

ISBN: 9789815104011

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There is a growing policy trend that in addressing climate change, various trade measures must be implemented to enhance the sustainable practices of global stakeholders. 

As a response to level up the playing field of global trade partners in enhancing sustainability, the EU recently introduced the European Union (EU) Carbon Border Adjustment Mechanism (CBAM), which will impose a carbon price on certain imports, namely, electricity, aluminium, cement, iron and steel, and fertilizer, to the EU. 

The EU CBAM may, however, cause trade disputes among World Trade Organization (WTO) members. 

EU and ASEAN trade relations are currently on an upswing trajectory, and there are therefore some risks involved in implementing the EU CBAM in the ASEAN region. 

At the same time, despite the perceived adverse effects, there is room for improvement in communicating EU CBAM implementation in ASEAN. 

The EU should introduce more calibrated approaches to implementing the EU CBAM in ASEAN, particularly considering the political and strategic risks, economic development and capacity, and climate ambitions of individual ASEAN countries.

This book is on the press and will be available for purchase from 31 January 2023.

Format: PB

Number of Pages: 29

Publication Date: 15/01/2023

Imprint: ISEAS-Yusof Ishak Institute


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