Thailand demonstrates aluminium export resilience; remains hopeful amidst CBAM challenges
The European Union’s (EU) policy of Carbon Border Adjustment Mechanism (CBAM), imposing “carbon-leakage” charges on cement, iron and steel, aluminium, fertilisers, electricity and hydrogen imported into the EU, has raised concerns among the European and exporting countries. Thailand, however, emerges with remarkable resilience under the CBAM regulations. Its industrial carbon-intensive goods export to the EU has surged drastically in the first 10 months of 2025.
Thailand’s metal export containing aluminium, steel and iron had initially hit a slump during the CBAM transitional phase of 2023-2025. Despite the carbon emissions roadblock, the country made a fast recovery, and the aluminium, steel and iron export saw a steep hike by 54.71 per cent, rising from 0.29 per cent and capturing 0.42 per cent share of the EU's CBAM market. Out of this, steel and iron occupy 85 per cent, and aluminium, a modest share of over 15 per cent.
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