The report
Loading the document…
AI analysis
AI-generated from the report above · not a translation and not the institution's wording · verify against the official source
Key arguments
- CBAM levels the playing field by pricing carbon emissions on imports, but it creates compliance burdens for exporters in countries like Malaysia.
- Malaysian exporters face potential loss of business if they cannot provide accurate emissions data required by EU importers.
- The transition phase (2023-2026) allows time for companies to adapt, but from 2026 full compliance is mandatory.
- Increased transparency in supply chains could drive innovation and reduce emissions, but also incurs additional costs.
Risks
- Loss of market share in the EU if exporters fail to comply with CBAM reporting requirements.
- Potential higher costs for raw materials if EU importers pass through CBAM costs.
- Complexities in measuring and reporting embedded emissions, especially for scope 2 (indirect) emissions.
- Uncertainty due to ongoing review of product scope, which could expand by 2030.