Thai CBAM Exports to EU Continue to Grow, Businesses Urged to Accelerate Sustainability Efforts

The Office of Trade Policy and Strategy under the Ministry of Commerce has reported continued growth in Thailand’s exports of goods subject to the European Union’s Carbon Border Adjustment Mechanism, or CBAM, ahead of its full enforcement on January 1, 2026. Despite the upcoming regulatory requirements, Thai exports to the EU in this category expanded significantly during the first ten months of 2025.

According to Nantapong Jiralerdpong, (นันทพงษ์ จิระเลิศพงษ์) Director-General of the Office of Trade Policy and Strategy, EU imports of CBAM-covered products from Thailand rose by 54.71 percent between January and October 2025. Thailand’s market share in the EU increased to 0.42 percent from 0.29 percent in 2024, while total EU imports of CBAM products reached more than USD 107 billion. Thailand ranked as the EU’s 33rd largest supplier, with import value of USD 447.51 million.

Globally, Thailand’s CBAM-related exports were valued at USD 7.15 billion, accounting for 2.54 percent of total exports. The EU remained Thailand’s seventh-largest market for CBAM goods, with exports worth USD 363.93 million. Iron and steel dominated shipments to the EU, representing more than 84 percent of the total, followed by aluminium at 15.52 percent. Exports of cement, fertilizers, electricity, and hydrogen remained minimal.

Although CBAM exports currently represent a small share of Thailand’s overall trade, the EU continues to be a key market for carbon-intensive products. The possibility of expanded CBAM coverage to downstream products and other sectors, along with similar measures in the United States, the United Kingdom, and Japan, highlights the need for adjustment.

Thai authorities have encouraged businesses to strengthen greenhouse gas measurement, reporting, and verification systems, invest in low-carbon technologies, adopt green procurement practices, and develop carbon accounting frameworks. While such adjustments may increase short-term costs, they are expected to enhance long-term competitiveness as global trade moves toward sustainability.