The readiness of Central Asian countries for low-carbon trade was discussed on September 12 by leading experts and business community representatives in an online training organized by the International Trade Center and its institutional partner in Central Asia – QazTrade.
QazTrade reports that webinar participants got acquainted with the European Union Agreement on Border Carbon Adjustment Mechanism (BCAM) and also discussed related events in other jurisdictions. Experts reportedly conducted an analysis of the potential impact of BCAM on trade from Central Asia and presented trade and investment policy tools that can be used by the region’s countries to comply with BCAM requirements and prepare for the transition to low-carbon trade.
In May 2023, the European Union published the final text of the Border Carbon Adjustment Mechanism (BCAM) regulation, which has significant regulatory implications for the trade sector. The new mechanism will officially come into force on October 1, 2023, with a two-year transitional period until December 31, 2025.
This regulation reportedly requires importers to obtain BCAM certificates from January 1, 2026, which is likely to result in additional costs. BCAM covers a range of key products, including cement, fertilizers, iron and steel, aluminum, hydrogen, and electricity.
QazTrade notes that according to experts, the regulation aims to reduce greenhouse gas emissions and promote low-carbon technologies in production.
The Ready4Trade Central Asia project is financed by the European Union and implemented by the International Trade Center.
