Adapting to the CBAM Mechanism: A Strategic Path for Manufacturing and Export Enterprises in Vietnam
CBAM is the world’s first carbon border tax mechanism, introduced by the European Union (EU) to reduce global greenhouse gas (GHG) emissions. Its primary objective is to prevent "carbon leakage"—a phenomenon where companies relocate production to countries with less stringent emissions regulations, thereby increasing global emissions.
The initial phase of CBAM took effect on October 1, 2023, and is being piloted for high-emission sectors such as cement, fertilizers, iron and steel, aluminum, hydrogen, and electricity. The scope is expected to expand to additional sectors in the future.
Jun. 30 2025