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AFTER EU, WHICH EXPORT MARKET WILL GREEN MANUFACTURING ENTERPRISES BENEFIT IN?

AFTER EU, WHICH EXPORT MARKET WILL GREEN MANUFACTURING ENTERPRISES BENEFIT IN?

Following the EU, markets in the Americas and Australia are also introducing "green import" regulations to help countries achieve climate goals and increase manufacturers' responsibility in reducing greenhouse gas emissions. .  

The EU's carbon border adjustment mechanism (CBAM) is probably no longer new to export businesses when its transition period officially began on October 1, 10. And many experts' predictions that other markets will also introduce similar regulations are now about to come true. 

02 bills on mechanisms similar to EU CBAM in the US 

Congressman Chris Coons (D-DE) introduced a draft bill called the Fair, Affordable, Innovative, and Resilient (FAIR) Transition and Competition Act. The Act will consider and quantify the emissions costs of businesses that produce high-emitting goods such as aluminum, cement, iron, steel, oil and natural gas, or products that have a high environmental burden. large environmental costs. Then the same level will apply to imported goods.  

Congressman Sheldon Whitehouse also submitted the Clean Competition Act, which proposes to apply a carbon tax of $55/ton of CO2 to goods that cause large emissions under the Environmental Protection Agency's Greenhouse Gas Reporting Program. And imported goods are also subject to the same costs (exempt from the amounts that the producer of those goods offsets under the carbon pricing mechanism in the host country). 

Proposed carbon border adjustment mechanism in Canada 

Since 2020, the Government of Canada has researched and proposed to apply BCA (border carbon adjustments) to help Canada achieve its climate goals, while ensuring a fair environment for businesses. BCA was built with 4 main goals: 

  • Prevent carbon leakage when businesses shift investment and production activities to areas with lower environmental costs. 
  • Maintain the competitiveness of domestic products by ensuring domestic and imported goods are subject to similar carbon fees. 
  • Supporting greater domestic climate ambition: By leveling the playing field between domestic and imported goods, BCA makes climate policies more ambitious and effective 
  • Advancing international climate action: BCA can push other countries to implement stronger domestic climate policies to avoid subjecting exported goods to BCA costs and maintain access this market. 

In the most recent move, last June 6, the Canadian Government consulted stakeholders on the application of BCAs. 

Draft Prevent carbon leakage in Australia 

On August 15, 08, in a speech at the economists' forum, the Australian Minister of Climate Change and Energy announced that the Australian Government would coordinate with experts to research solutions to prevent carbon leakage in this country. The Minister also mentioned that he will take the EU's CBAM as a model but will consider and promulgate a policy appropriate to the Australian context. 

The research and review will be completed by September 9. A draft will be designed and announced soon to collect comments from relevant parties. 

Thus, following the EU's pioneering work in preventing carbon leakage and ensuring climate goals are implemented, many other large countries are also taking drastic actions. Therefore, mastering the emission issue of businesses early will help businesses not only increase their strength in export competition to the EU market but also in the US, Canada, Australia markets... and eventually many other markets. other area. 

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