{"id":672699,"date":"2026-01-04T05:58:14","date_gmt":"2026-01-04T05:58:14","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/672699\/"},"modified":"2026-01-04T05:58:14","modified_gmt":"2026-01-04T05:58:14","slug":"eu-cbam-carbon-levy-may-hit-thai-steel-exports-by-28bn-baht-in-2026","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/672699\/","title":{"rendered":"EU CBAM carbon levy may hit Thai steel exports by 28bn baht in 2026"},"content":{"rendered":"<p><strong>Estimated impact: 3.8% of exports to the EU<\/strong><\/p>\n<p>Research by Kasikorn Research Centre estimates that once CBAM moves into its paid phase in 2026, the initial impact could equal about 3.8% of Thailand\u2019s exports to the EU, or roughly 28 billion baht.\u00a0<\/p>\n<p>The biggest hit is expected to fall on steel and aluminium, while the impact on cement and fertilisers is expected to be limited because Thailand exports relatively small volumes of those products to the EU.<\/p>\n<p>In practice, exporters may also face additional burdens beyond the carbon price itself\u2014especially the costs of collecting, calculating and verifying product-level emissions data under Measurement, Reporting and Verification (MRV) requirements, and coordinating with EU importers to ensure CBAM certificates are purchased and surrendered in line with the rules.<\/p>\n<p><strong>Risk\u2014and opportunity\u2014for low-carbon steel<\/strong><\/p>\n<p>Bantoon said CBAM is not only a threat but also a potential opportunity for Thai producers with low embedded carbon, particularly firms using electric arc furnace (EAF) technology and recycled scrap as feedstock.<\/p>\n<p>FTI data for January\u2013October 2025 show Thailand\u2019s exports of iron and steel products to the EU rose by more than 250% year on year. Part of the increase, he said, reflects growing EU demand for lower-carbon steel as importers prepare supply chains ahead of CBAM\u2019s full application.<\/p>\n<p>\u201cThai EAF steel can help reduce a buyer\u2019s carbon-related costs in the EU by 5\u201310% of the product\u2019s value,\u201d he said, adding that the advantage could widen over time and potentially reach around 20% within a few years.<\/p>\n<p>            <img decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/01\/lg-webp.webp\" alt=\"EU CBAM carbon levy may hit Thai steel exports by 28bn baht in 2026\" class=\"img-fluid w-100 showcaption-false\" style=\"width: 1080px; height: 720px;\" width=\"1080\" height=\"720\" loading=\"lazy\"\/>\n        <\/p>\n<p><strong>What the industry wants<\/strong><\/p>\n<p>To respond, Bantoon said Thai steel producers need to accelerate factory- and product-level MRV systems, increase the use of renewable electricity through power purchase agreements (PPAs) or onsite solar, and strengthen traceability across supply chains.<\/p>\n<p>He added that the sector is also seeking government support, including efforts to have the EU recognise accredited verifiers in Thailand, progress on a Climate Change Act and an emissions trading system (ETS), and policies to prioritise domestic use of scrap steel and scrap aluminium to help build higher-value low-carbon products.<\/p>\n<p>\u201cCBAM is a mechanism that is effectively sorting winners from losers in the global steel industry,\u201d Bantoon said. \u201cIf Thailand adapts in time, it can not only defend existing markets but also use low carbon as an advantage to expand exports over the long term.\u201d<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Estimated impact: 3.8% of exports to the EU Research by Kasikorn Research Centre estimates that once CBAM moves&hellip;\n","protected":false},"author":2,"featured_media":672700,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5174],"tags":[53221,2000,299,5187,1699,5167,25541,731],"class_list":["post-672699","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eu","tag-cbam","tag-eu","tag-europe","tag-european","tag-european-union","tag-manufacturing","tag-steel-industry","tag-thailand"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115835299750240956","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/672699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=672699"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/672699\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/672700"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=672699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=672699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=672699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}