EU's carbon challenge

From today, exporters of five types of products to the European Union must comply with the bloc's Carbon Border Adjustment Mechanism (CBAM).

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The regulation applies to six high-emission products: steel, aluminium, cement, fertiliser, electricity and hydrogen.

This new non-tariff barrier is expected to further strain domestic steelmakers already grappling with a surge of low-priced Chinese imports and the United States' decision to double tariffs on steel and aluminium to 50% from 25%.

Medium-sized manufacturers will also be affected, as CBAM requires them to disclose greenhouse gas emissions associated with their products and purchase CBAM certificates to offset those emissions.

The big question is whether Thailand is ready to comply with CBAM. The answer, regrettably, is probably not.