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8 Dec 2025

Industry

EU CBAM, taking effect in 2026, may undermine the competitiveness of Thailand’s steel industry (Current Issue No.3628 Full Ed.)

คะแนนเฉลี่ย
  • As of January 1, 2026, the European Union (EU) will begin collecting import duties under the Carbon Border Adjustment Mechanism (CBAM). KResearch expects CBAM to initially affect 3.8 percent of Thai exports to the EU in 2026, or approximately THB 28 billion. 
  • The two key sectors that will be affected in Thailand are iron & steel (with an export value of USD 95.1 million in 2024) and aluminum (with an export value of USD 56.7 million in 2024), while effects on cement and fertilizers will be limited due to their low amounts of exports to the EU. 
  • At the same time, industries that are not yet directly within the CBAM scope, such as polymers, plastics, chemicals, glass & ceramics, pulp & paper, and electronic component assembly, should immediately move to measure product carbon footprints and study investment plans for low-carbon technologies.

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Industry