Vietnam's Ministry of Natural Resources and Environment has proposed a carbon tax.
This will help mitigate the impact of the European Carbon Import Adjustment Mechanism (CBAM), reports DDTC.
Deputy Minister of Natural Resources and Environment Mai Kim Lien explained that CBAM will make it difficult for products from countries with high carbon emissions to enter the EU markets. Vietnam's main export could be affected by the carbon tax. However, if high-carbon companies are taxed within the country, it will be easier for their products to enter the European Union.
He emphasized that this will also confirm Vietnam's commitment to solving the climate change problem.
"To establish and operate the domestic carbon market, the prime minister instructed the ministry to review the road map for implementing a carbon tax in Vietnam," Lien said.
As you know, CBAM will apply to imports of energy-intensive goods, namely iron, steel, cement, aluminum, fertilizers, electricity and hydrogen, as well as indirect emissions under certain conditions. The transitional phase of the implementation of the carbon tax begins on October 1, 2023. At the first stage, companies will only have to report emissions. The toll will be phased in from 2026 to 2034 at the same rate as the end of free EU ETS emissions allowances.
Earlier, EcoPolitic wrote, that on April 18, the members of the European Parliament approved the agreements on the reform of the emissions trading system (ETS), the carbon import adjustment mechanism (CBAM) and the creation of the social climate fund (SCF).
As EcoPolitic previously reported, Great Britain is considering introducing its own carbon tax on imported steel, which is similar to CBAM – the European carbon import adjustment mechanism.
