Commerce Ministry Urges Thai Exporters to Prepare Carbon Emissions Calculations for EU's CBAM Tariff

On April 28, 2026, Arada Fueangtong, Director-General of the Department of Foreign Trade, announced that the European Union has fully implemented the Carbon Border Adjustment Mechanism (CBAM) under EU Regulation 2023/956 starting January 1, 2026. The measure covers six product categories: steel and steel products, aluminum, cement, fertilizer, hydrogen, and electricity, requiring importers with shipments exceeding 50 tons annually to purchase CBAM Certificates to offset embedded greenhouse gas emissions.

Emissions can be calculated two ways: using actual production data verified by EU-accredited bodies, or applying EU-set default reference values. On December 16, 2025, the EU released additional regulations (EU 2025/2621) establishing country and product-specific standard values based on the average emissions of the top 10% highest-emitting factories.

Exporters unable to calculate actual emissions must use default values, with escalating mark-ups: Thai steel, aluminum, and hydrogen face 10% increases in 2026, 20% in 2027, and 30% in 2028. Thai fertilizer exporters face 1% annual increases. These progressions incentivize producers to disclose real emissions data, as failure to do so increases export costs significantly, particularly for manufacturers using outdated production technology.

Arada emphasized that Thai businesses should urgently compile complete greenhouse gas emissions data and documentation throughout their supply chains to reduce long-term costs. She also recommended closely monitoring regulatory updates and improving production processes to reduce emissions and maintain competitive advantage in EU markets. Further details are available at 02 547 4735 or hotline 1385.