How to Prepare for the Challenges of Carbon Pricing in Global Trade?

As carbon pricing mechanisms are increasingly adopted worldwide, businesses in international trade must adapt to new challenges. Policies like the European Union’s Carbon Border Adjustment Mechanism (CBAM) and recent carbon tax initiatives in countries such as Thailand and Canada highlight the growing importance of carbon pricing in reshaping global trade and driving sustainability.

Understanding Carbon Pricing and CBAM

Carbon pricing assigns a cost to greenhouse gas emissions, incentivising businesses to lower their environmental impact. CBAM focuses on imported goods, reshaping global trade by penalising products from high-emission regions. While it aims to drive sustainability, it also presents significant challenges for international businesses.

Learn more about carbon pricing and CBAM:

Key Challenges of Carbon Pricing

1. Shifts in Trade Patterns: CBAM and other carbon pricing policies could alter trade flows, forcing businesses to adjust sourcing strategies to avoid carbon tariffs, potentially disadvantaging high-emission exporters in sectors like steel and cement.
2. Higher Costs: Carbon pricing increases production costs for covered goods, affecting competitiveness both within domestic markets and globally.
3. Regulatory Complexity: With varying carbon pricing regulations in different countries, businesses must navigate complex compliance requirements.

To mitigate these challenges, businesses should:

1. Stay Informed: Regularly track global carbon pricing developments to anticipate regulatory changes, adjust strategies, and understand the new policies, regulations, and the practical challenges of complying with them.
2. Invest in Low-Carbon Technologies: Adopt cleaner technologies to reduce emissions and comply with emerging regulations.
3. Develop a Carbon Management Strategy: Create a strategy to monitor emissions, assess risks, and explore carbon offsetting opportunities like credits.

Preparing for carbon pricing challenges is crucial for businesses as we foresee more and more countries, including Malaysia is planning to impose carbon tax. Understanding policies like CBAM and adopting proactive strategies—such as staying informed and attending trainings, investing in decarbonisation solutions, and developing carbon management plans—can help mitigate risks and unlock opportunities.?

To help businesses worldwide adopt carbon pricing mechanisms, BBC has designed a series of events and workshops to equip you with the knowledge and tools needed to navigate the upcoming challenges in global trade. Check the upcoming events below.

Upcoming Events

Live Session

As the EU's CBAM implementation in 2026 approaches, businesses, especially those in the iron and steel industry, must adapt to regulatory changes by embracing sustainability to remain competitive. Additionally, businesses must address the challenges of navigating carbon tax requirements. How can we prepare for these upcoming hurdles??

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Carbon Border Mechanism Adjustment (CBAM) Online Workshops

The EU’s Carbon Border Adjustment Mechanism (CBAM) promotes fair competition and international decarbonisation by imposing tariffs on imports from high-emission countries, affecting industries such as steel, aluminium, and cement. To help businesses address CBAM and carbon pricing, we will host an online workshop on February 20, 2025 from 1:00 PM to 5:00 PM (MYT). The session will provide essential knowledge on CBAM compliance and practical tools, with ESG consultant, 黄嘉欣 guiding participants on monitoring and verifying carbon emissions. This workshop aims to help businesses meet CBAM requirements and navigate the implementation of carbon pricing and carbon taxes.

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欧盟碳边境调整机制（CBAM）通过对高排放国家进口商品征税，促进公平竞争与国际脱碳，影响钢铁、铝、水泥等行业。为帮助企业应对CBAM和碳定价，我们将于2025年3月6日下午1:00至5:00（MYT）举办线上工作坊，提供CBAM合规关键知识和应对工具，由ESG顾问与培训师黄嘉欣讲解碳排放量的监测与验证，助力企业满足CBAM要求， 并应对碳定价和碳税的实施。

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