CBAM – The Key to EU Market Access and Adaptation Strategies for Vietnamese Businesses

CBAM – Carbon Border Adjustment Mechanism is becoming a mandatory “information ticket” for Vietnamese goods entering the EU market. Are Vietnamese businesses ready? The article below will help you better understand CBAM, the minimum facing formulas and effective solutions to achieve success in the context of global green transition.

Ảnh minh họa

What is CBAM?

The Carbon Border Adjustment Mechanism (CBAM) is an EU initiative designed to minimize carbon leakage by imposing carbon fees on goods imported into the European Union. CBAM is integral to the EU’s Green Deal strategy, aiming for carbon neutrality by 2050.

Scope of CBAM Implementation

CBAM targets the following imported products into the EU:

• Iron and steel products: Including steel sheets, plates, bars, and tubes.
• Cement: Including clinker and related products.
• Aluminum: Aluminum in the form of bars, sheets, and other products.
• Fertilizers: Chemical fertilizers.
• Electricity: Electricity imported from non-EU countries.

• Other chemical products and high-emission goods.

How Does CBAM Work?

Under CBAM, companies exporting products to the EU must accurately measure and report the carbon emissions produced during manufacturing. Starting from 2026, they must purchase corresponding carbon emission certificates to import goods into the EU.

CBAM Implementation Roadmap

According to official EU guidelines (details here), CBAM is implemented in the following phases:

• Transition phase (2023 – 2025): Businesses must report carbon emissions but are not yet required to purchase carbon certificates. This period helps businesses prepare for new regulations.
• Official phase (from 2026 onward): Businesses are mandated to purchase carbon emission certificates based on actual emission volumes.

Detailed Guide on CBAM Reporting

Businesses must follow these steps for CBAM reporting:

1. Identify affected products: Clearly determine products subject to CBAM.
2. Measure carbon emissions: Use internationally recognized methods to accurately measure direct and indirect emissions.
3. Prepare quarterly reports: Detail emissions and implemented reduction measures.
4. Verification and registration: Reports must be verified by EU-accredited third-party organizations before submission to EU authorities.

Impacts of CBAM on Vietnamese Businesses

CBAM poses significant challenges to Vietnamese businesses:

• Increased costs: Additional expenses for carbon certificates.
• Intensified competition: Vietnamese products face greater competition from producers already adopting green technologies.
• Transformation in production management: Businesses must invest in cleaner technologies and advanced emission management systems.

Solutions to Help Vietnamese Enterprises Adapt to CBAM

Vietnamese businesses should consider the following adaptive solutions:

• Review and improve production technology: Invest in green technology to minimize emissions.
• Develop long-term emission reduction strategies: Establish detailed plans for emission management and reduction.
• Enhance international collaboration: Leverage cooperation programs and technical assistance from the EU to boost green production capacity.

Proactively adapting to CBAM helps Vietnamese enterprises maintain competitiveness, support sustainable growth, and align with global sustainability trends.

Detailed EU Guidelines on CBAM Implementation

According to official EU guidelines (available here), businesses must:

• Set up systems to track and report emissions clearly.
• Apply EU-provided standard emission factors where precise emission measurement is challenging.
• Complete and submit quarterly reports during the transition period, outlining both imported products and associated emissions.
• Undergo independent third-party verification to ensure transparency and accuracy of emissions data.

Clearly understanding and complying with CBAM not only enables Vietnamese enterprises to maintain their competitive edge in the EU market but also contributes to the global fight against climate change.

For any information about CBAM, customers can contact us directly! Hotline 0866.059.659 or 0332.26.86.26 for more details.