Kazakhstan's exporters race to adapt to Europe’s carbon border tax

Kazakhstan's key industrial sectors, particularly aluminum, iron, and steel, are bracing for substantial effects due to the European Union's new Carbon Border Adjustment Mechanism (CBAM). The EU's CBAM is designed to put a carbon price on imports of certain goods into the EU, aiming to prevent carbon leakage and encourage cleaner production globally.

Fabiana Fong, a component lead at the International Trade Centre (ITC), highlighted these concerns during a presentation of a CBAM impact assessment report in Astana on June 3. The study indicates that Kazakh exporters in these heavy industries will need to significantly adapt their operations and reporting to comply with the new EU environmental and trade regulations.

In response, exporters across Kazakhstan are actively racing to adjust their strategies and operations. This adaptation process is crucial for maintaining access to the lucrative European market. The implementation of CBAM presents both a challenge and an opportunity for Kazakhstan to potentially enhance its own environmental standards and promote greener industrial practices.

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