The trend of environmental measures becoming more stringent around the world.
European Union (EU) pre-crossing carbon price adjustment measures
The EU prepares to apply carbon price measures before crossing the border Carbon Border Adjustment Mechanism or CBAM from 1 October 2023 onwards for imported products in targeted industries with high greenhouse gas emissions.
including cement, fertilizer, iron and steel, aluminum, hydrogen and related downstream industries. In the first phase, operators must report carbon dioxide emissions in the production process. It is expected that there are about 1,300 entrepreneurs involved, with an export value of 18,100 million baht.
US Clean Competition Act
The United States is considering setting up a carbon pricing mechanism and measures to adjust the cross-border carbon price (CBAM) from imported products in industries that emit concentrated greenhouse gases, including petroleum production and refining, petrochemicals, fertilizers, hydrogen, adipic acid, and cement. Iron and steel, aluminum, glass, pulp and paper, and ethanol.
European Union Deforestation-Free Products Law
The bill requires businesses importing goods to the EU to investigate and report their involvement in causing deforestation. (Deforestation-free products) from 7 groups of products, including beef and products. wood and printed paper products Oil palm and its derivatives, soybeans, coffee, cocoa, rubber and its products. Including other processed goods such as leather goods, chocolate, furniture, etc. Entrepreneurs must show information that can be verified that imported goods have not been involved in deforestation since 2021. Failure to comply will result in fines.
This bill is pending. If it goes into effect, entrepreneurs will have 18 months to prepare for legal action.
Driving Disclosure
Considerations are being taken to increase reporting rigor and public disclosure of sustainability performance. To detect and prevent exploit operations identifying ESG operations incorrectly. or green bleaching (Greenwashing), such as the operation in the EU. United Kingdom, China, Japan, United States, etc.
thailand stock market And the Securities and Exchange Commission (SEC) requires listed companies to disclose sustainability information as well. And there will be more climate and environment related accounting requirements in the future.
Preventing Greenwashing and the Anti-ESG Trend
ESG Action (Anti-ESG Campaign ) is a political tool. Republican states, in particular, have opposed recent Democrats’ ESG actions that have made it harder for the fossil fuel industry to do business. Some proposed societies may emphasize political goals rather than actual implementation.
