KARACHI: Ministry of Commerce (MoC) of Pakistan and TDAP in collaboration with European Commission arranged an informative session regarding Carbon Boarder Adjustment Mechanism (CBAM) which is applicable on sectors like cement, iron & steel, aluminium, fertilizers, electricity & hydrogen.

Delphine Sallard, DG Taxation & Custom Union (TAXUD), European Commission gave a comprehensive presentation highlighting different contours of the regulations. She mentioned that CBAM is a tool introduced by EU to address carbon leakage by imposing a carbon price on imports from non-EU countries. The mechanism ensures that imported goods are subject to the same carbon costs as goods produced within the EU, promoting global reductions in greenhouse gas emissions.

She further discussed different impact of CBAM on Pakistan’s exports to the EU. Pakistani exporters will require to measure, report and reduce carbon emissions in their production processes. Non-compliance of may make products less competitive owing to additional cost for carbon pricing.

Nasir Hamid, AS MoC emphasized on Pakistani industries to adapt to new regulations as compliance will be a key determinant of our continued access to European markets. Omar Hameed, EM Brussels and TDAP are facilitating Pakistani business community to make them compliant with such requirements.

Awareness session was attended by both private and government sector representatives.

Copyright Business Recorder, 2024