ASEAN is putting together a new modern framework for trade and environment: Irawan on webinar on Europe’s carbon border adjustment CBAM mechanism.
Collaboration will include “interoperability” of carbon markets: Irawan said.
This may signal that a club of countries keen to be really ambitious on climate action is forming, despite the incoming presidency of Donald Trump in the US.
Asia nations in Asean exclude some big ones including China, India and Japan …yet includes Indonesia (see below).
AI text transcript of Irawan– (sorry for any confusion):
The conversation discusses the emerging issue of trade facilitation with a focus on the ASEAN-EU relationship, particularly in the context of the EU’s Carbon Border Adjustment Mechanism (CBAM). Irawan emphasizes the need for cooperation between ASEAN and the EU to mitigate negative trade impacts through capacity building, best practices, and technical support. The ASEAN Carbon Neutrality Strategy, comprising eight key strategies, is highlighted as a commitment to sustainable growth and regional cooperation. Future initiatives aim to support eco-friendly practices across industries and meet global demand for sustainable products. However, specific details about these future initiatives are still under development and will be published soon. Additionally, he stresses the importance of quantitative and comparative analysis on the impact of CBAM for ASEAN’s preparedness.
Action Items
More options
- Conduct quantitative and comparative analysis on the impact of CBAM.
- Publish the public version of the next ASEAN strategic action plan by next year.
Rough text:
“…As everyone’s aware that, CBAM is quite a it’s quite a new issue. It’s one of the emerging issues of in terms of trade facilitation. So I think one of the few things that the ASEAN would need to do is, first of course, we need to strengthen the cooperation between ASEAN and EU to address the potential negative impact arising from CBAM to the trade value between ASEAN and EU. This could be capacity building and best practice sharing, as well as technical support for ASEAN governments and private sector to maintain the ASEAN capability to export relevant products to the EU further.
I think if everyone’s aware, the ASEAN has already adopted the ASEAN carbon neutrality strategy, which comprised of eight key strategies that aim to kick start ASEAN journeys towards carbon neutrality.
The eight strategies include exploration of green value chain integration, regional circular economy, supply chain connectivity of green infrastructure. Market interoperability of carbon markets, credible and common standards, attracting and deploying Green Capital, green talent, development and mobility, as well as green best green best practice.
This comprehensive strategy would reflect the ASEAN commitments to achieving the carbon neutrality, while fostering sustainable growth and regional cooperation further.
Currently, ASEAN is also developing the next strategic action plan covering 2026 to 2030 with
… one of its focuses on mainstreaming climate responsive principles across all economic dimensions, and building ASEAN long term resiliency.
Future initiatives will focus on the region, regional initiatives that can support implementation and transition to eco friendly practices across industries, thereby reducing ecological &
mitigating climate change impacts, as well as meeting the rising global demand for sustainable products and services.
Unfortunately, I cannot mention much about this part, because it is still under development, and hopefully …a public version would be published, hopefully by next year (he said).
In addition, in order for ASEAN to ensure the preparedness of the CBAM. It is important to also conduct several analysis, quantitative analysis, comparative analysis, on impact of Cbam, as well as economic analysis related to the impact of CBAM in a CBAM in EU and ASEAN trade sector and its policy steps, this would include a road map for ASEAN in terms of as well as recommendations for ASEAN in terms of the trade policy and other policies in other sectors and other ministers (ministries?) in order to tackle the negative impact or the potential negative impact of CBAM. So I think … that’s all that I can mention for now. Everything is still under development. However, ASEAN is very committed to … to ensure that they are prepared for the implementation of the cbam, and hopefully everything will run smoothly in the future. Thank you.”
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