This report explores the effects of border carbon adjustment (BCA) schemes, especially the European Union's Carbon Border Adjustment Mechanism (CBAM) on Vietnam, using insights from stakeholders and research. It covers opportunities for Vietnam to meet Paris Agreement climate goals and challenges such as impacts on exports, economy, and employment. Recommendations stress balancing climate action with equity, international collaboration, and special treatment for developing countries in BCA design.
Authors
VU Kim Ngan, NGUYEN Ngoc Ha, HOANG Thi Minh Hang, TRAN Phuong Ngoc, LE Thi Thanh Tam
- Pages
- 43
- Published in
- Canada
- Rights
- IISD, 2024
Table of Contents
- Figure 1. Top 10 export markets of Vietnam steel in 2022 13
- Figure 2. Top cement-producing countries in 2022 15
- Figure 3. Exports of Vietnam cement to the EU from 2019 to August 2023 16
- Figure 4. Who has contributed most to global CO2 emissions? 32
- Figure 5. Carbon traceability 33
- Table 1. The estimated impacts of EU’s CBAM regulation (as of March 2023) on Vietnam in 2030 for key sectors 23
- 1.0 Introduction to Border Carbon Adjustments 6
- 1.1 What Are BCAs? 6
- 1.2 Challenges of BCAs and International Cooperation 8
- 2.0 Impacts of BCAs on Vietnam 11
- 2.1 The Context of Vietnam 11
- 2.2 Impacts on Sectors Currently Exposed to BCAs 11
- 2.3 Impacts on Other Sectors Potentially Exposed to BCAs 16
- 3.0 Responses to BCAs by Vietnamese stakeholders 19
- 3.1 From the Government 19
- 3.2 From Industry 23
- 3.4 From Academia 29
- 4.0 International Principles and Best Practices 31
- 4.1 The Principle of Common but Differentiated Responsibility 31
- 4.2 The Extent of Carbon Footprint Traceability and Measurement 33
- 4.3 The Extent of Coverage of BCA/CBAM Measures 33
- 4.4 Administrative Burden 34
- 4.5 Technical Assistance and Technology Transfer 34
- 4.6 International Dialogues and Cooperation Platforms to Facilitate Convergence in BCA Design 35
- 5.0 The Way Forward 36
- 6.0 Conclusion 37
- References 38
