Asean countries ambivalent about EU CBAM

The European bloc’s largest trading partners in south-east Asia are concerned the carbon border adjustment mechanism could dent both their exports and overall GDP, but some see merit in the scheme

The EU’s carbon border adjustment mechanism, which imposes a carbon levy on imports from jurisdictions with more lax climate policies, has met with some concern by the Association of Southeast Asian Nations economies, which form Europe’s third-largest trading partner after the US and China. However, some believe the initiative will ultimately help to accelerate the green transition in the area.