Impact of the carbon border adjustment mechanism (CBAM), carbon tax on export businesses and response strategies

Abstract

This article investigates the implementation of the European Union's (EU) Carbon Border Adjustment Mechanism (CBAM) starting from October 1, 2023, and its impact on businesses, particularly in Vietnam, and strategies for adaptation. The transitional phases and the introduction of carbon taxes based on the emission levels of imported products from 2026 will increase pressure on businesses to shift to cleaner technologies and optimize production processes. This study analyzes the economic and technical impacts, proposes response strategies, and explores opportunities arising from CBAM. It emphasizes the role of international cooperation and multilateral dialogue, as well as the connection between CBAM and the utilization of carbon tax credits. The research methodology includes data collection from authoritative sources and expert interviews. The findings underscore the need for business support to ensure CBAM does not hinder the development of Vietnamese enterprises and recommend businesses to assess impacts, enhance capabilities, use renewable energy, innovate production processes, and build sustainable supply chains.