Iron and aluminium lead the charge as Thai exporters successfully navigate Brussels’ Carbon Border Adjustment Mechanism (CBAM) ahead of 2026 deadline.
Thailand’s industrial sector has demonstrated remarkable resilience in the face of tightening European environmental standards, with exports of carbon-intensive goods to the European Union (EU) surging by nearly 55 per cent.
Reporting for Thansettakij, Chatchayapron Phongam notes that during the first ten months of 2025, Thai exports falling under the Carbon Border Adjustment Mechanism (CBAM) grew by a staggering 54.71 per cent.
This growth has allowed Thailand to capture a 0.42 per cent share of the EU’s CBAM market—a significant jump from the 0.29 per cent recorded throughout 2024.
Navigating the ‘Green Deal’
CBAM is a cornerstone of the European Green Deal, designed to level the playing field between EU manufacturers, who pay for their emissions via the EU Emissions Trading System (ETS), and foreign exporters.
By placing a carbon price on imports, Brussels aims to prevent “carbon leakage” to countries with less stringent climate policies.
Nantapong Chiralerspong, director of the Trade Policy and Strategy Office (TPSO), confirmed that the growth was largely driven by the iron, steel, and aluminium sectors.
These industries have proven particularly adept at adjusting to the new reporting requirements ahead of the “Definitive Phase” of the regulations, which is set to commence on 1 January 2026.