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What Does the EU’s Carbon Border Adjustment Mechanism Mean for Asian Economies?

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Pacific Money | Economy

What Does the EU’s Carbon Border Adjustment Mechanism Mean for Asian Economies?

Although the exposure of Asian markets is initially limited, CBAM could signal a major shift in both emissions reduction and global trade. 

By Sacha Shaw
September 27, 2023
What Does the EU’s Carbon Border Adjustment Mechanism Mean for Asian Economies?
Credit: Depositphotos

October 1 marks the beginning of phase one of the European Union’s landmark Carbon Border Adjustment Mechanism (CBAM). Reactions are mixed: for some, it’s an exciting world first that will account for the “real cost” of carbon emissions; for others, it’s a classic case of developed economies dumping their climate responsibilities onto the developing world.

Although the exposure of Asian markets is initially limited, CBAM could signal a major shift in both emissions reduction and global trade. 

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