Carbon Border Adjustment Mechanism: Impact assessment for Vietnam (funded by UNOPS, 2022)

The EU’s Carbon Border Adjustment Mechanism (CBAM) is evolving rapidly with the broad objective of establishing an international price on carbon, applicable to commodities imported into the EU from 2026. As the EU is an important market for Vietnam’s producers, Vietnam should engage proactively with the EU and prepare to mitigate the potential impacts of CBAM. This project provides a quantitative assessment of the impact of CBAM on Vietnam at both the macroeconomic and sectoral levels. The project also provides recommendations for specific measures to mitigate the negative impacts and leverage the positive impacts of CBAM on Vietnam’s economy and its committed pathways to net-zero by 2050.

VPS people: Long Chu, Thang Do, Khoi Dang, Lien Le, Quoc Anh Ho