Ministry of Commerce Warning to exporters to prepare for the "US-EU" carbon tax.

Ms. Oramon Sapthaveetham, Director-General of the Department of International Trade Negotiation, Ministry of Commerce, revealed that monitoring the movements of Thailand's trading partners shows that the United States and the European Union (EU) are in the process of drafting legislation to impose carbon taxes on goods whose production processes result in high carbon emissions.

Members of the United States Senate The Clean Competition Act (CCA) has been proposed, aiming to impose a carbon tax on products whose production processes produce high carbon emissions. By offering to US manufacturers and importers of products from abroad A carbon tax of USD 55 per tonne of carbon emissions will be required if the manufacturing process exceeds a certain threshold.

This will apply to products such as fossil fuels. Products from petroleum refining, petrochemicals, fertilizers, hydrogen, adipic acid, cement, iron and steel, aluminum, glass, pulp and paper, and ethanol, which will come into effect in 2567 and by 2569 will be expanded to cover finished goods with side products. The tree is a component in production. By drafting the said law It is still under consideration by the Senate committee.

For the European Union Still in the process of issuing a measure to adjust carbon before entering the border (Carbon Border Adjustment Mechanism: CBAM), which will pilot tariffs on 8 products imported for sale in the European Union, including iron and steel, aluminum, cement, fertilizer, electricity, hydrogen, chemicals and plastics, which are considered It is an important component in the production process of various products. It is expected to come into full force in 2570.

Mrs. Oramon said that when comparing the US CCA draft with the European Union's CBAM measures, it was found that both measures have the same goal of reducing greenhouse gas emissions. But there are different parts, for example, the CBAM measures only apply to imported products. and will collect a tax on all carbon generated. The draft CCA law will apply to products produced within the country. and imported products And carbon taxes will be collected only for the portion that exceeds the limit.

Currently, Thailand's important trading partners Prepare to enforce additional carbon tax measures. This will inevitably affect Thailand, which is a country that exports products. Therefore, Thai product manufacturers should prepare to deal with such measures. By accelerating adjustments to the production process to reduce carbon emissions throughout the supply chain. and provide information on carbon emissions. as evidence for export. In addition, various related agencies Consideration must be expedited to upgrade the current carbon pricing mechanism to be acceptable according to international standards. To reduce the burden of paying taxes Or buy a carbon emissions certificate that Thai manufacturers must also pay to foreign countries.