Reference

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Supporting source

Thai exporter EU CBAM Phase 2 cost exposure

~USD 350-450M annual (2026 estimate)

As of2026 financial-liability start·Sources4·Supporting

Thai exporters of CBAM-covered goods (steel, aluminium, cement, fertilizer, electricity, hydrogen) face estimated incremental annual EU compliance cost of USD 350-450 million from 2026 when CBAM Phase 2 financial liability begins, per modelling by the Federation of Thai Industries (FTI) and Bank of Thailand impact studies. The largest exposure sits with Sahaviriya Steel Industries (SSI), Tata Steel Thailand, and aluminum sub-supply for automotive. Domestic carbon-credit creation under T-VER cannot directly offset CBAM liability under current EU rules; the exposure is therefore a one-way cost unless reciprocal pricing arrangements are agreed.

Figure in context

Thai exporters of CBAM-covered goods (steel, aluminium, cement, fertilizer, electricity, hydrogen) face estimated incremental annual EU compliance cost of USD 350-450 million from 2026 when CBAM Phase 2 financial liability begins, per modelling by the Federation of Thai Industries (FTI) and Bank of Thailand impact studies. The largest exposure sits with Sahaviriya Steel Industries (SSI), Tata Steel Thailand, and aluminum sub-supply for automotive. Domestic carbon-credit creation under T-VER cannot directly offset CBAM liability under current EU rules; the exposure is therefore a one-way cost unless reciprocal pricing arrangements are agreed.

Thai exporters of CBAM-covered goods (steel, aluminium, cement, fertilizer, electricity, hydrogen) face estimated incremental annual EU compliance cost of USD 350-450 million from 2026 when CBAM Phase 2 financial liability begins, per modelling by the Federation of Thai Industries (FTI) and Bank of Thailand impact studies. The largest exposure sits with Sahaviriya Steel Industries (SSI), Tata Steel Thailand, and aluminum sub-supply for automotive. Domestic carbon-credit creation under T-VER cannot directly offset CBAM liability under current EU rules; the exposure is therefore a one-way cost unless reciprocal pricing arrangements are agreed.

Time scope

2026 financial-liability start

Source basis

Supporting source

Interpretation notes

What this tells you

Thai exporters of CBAM-covered goods (steel, aluminium, cement, fertilizer, electricity, hydrogen) face estimated incremental annual EU compliance cost of USD 350-450 million from 2026 when CBAM Phase 2 financial liability begins, per modelling by the Federation of Thai Industries (FTI) and Bank of Thailand impact studies. The largest exposure sits with Sahaviriya Steel Industries (SSI), Tata Steel Thailand, and aluminum sub-supply for automotive. Domestic carbon-credit creation under T-VER cannot directly offset CBAM liability under current EU rules; the exposure is therefore a one-way cost unless reciprocal pricing arrangements are agreed.

What not to do with it

Estimate covers in-scope iron-steel, aluminium, cement, fertilizer, hydrogen, and electricity exports to the EU. Phase 1 transition reporting started October 2023 (no financial liability); Phase 2 (financial liability) starts 1 January 2026 with full payment.

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Thai exporter EU CBAM Phase 2 cost exposure · Insight