UOB Malaysia launches masterclass to help businesses prepare for the European Union’s Carbon Border Adjustment Mechanism policy
Kuala Lumpur, Malaysia, 7 May 2024 – UOB Malaysia today launched the Carbon Border Adjustment Mechanism (CBAM) Supply Chain Imperatives Masterclass to help businesses understand and prepare for the implementation of European Union’s (EU) CBAM requirements in 2026.
The CBAM is a carbon border tax that puts a fair price on the carbon emitted during the production of carbon-intensive goods entering the EU, and encourages cleaner industrial production in non-EU countries. The EU’s CBAM is currently in its transitional phase and will take full effect in 2026. This regulatory change will impact Malaysian businesses currently exporting to the EU as it will require them to use CBAM’s methodology to measure and report on the total carbon emissions embedded in the production of certain goods.
Ms Ng Wei Wei, Chief Executive Officer, UOB Malaysia, said, “The Carbon Border Adjustment Mechanism (CBAM) is expected to affect 75 per cent of Malaysian exports to the EU1, Malaysia’s fourth largest export market2. This new regulatory requirement will definitely further drive the importance of sustainability in the global supply chain. We remain focused on facilitating global trade, and the CBAM Supply Chain Imperatives Masterclass is just one of the many ways we help local businesses improve their competitiveness by providing them with the knowledge to prepare for the implementation of EU’s new regulation.”
Curated exclusively by UOB Malaysia & PricewaterhouseCoopers Malaysia (PwC), the CBAM Masterclass provides businesses with a deeper understanding on the topic of CBAM. The programme comprises three parts, which begins with businesses identifying their sustainability maturity stage using the UOB Sustainability Compass. They are then educated on the intricacies of the CBAM requirements that affect their respective sectors, and available sustainable financing solutions to help them decarbonise and reduce the embedded emissions in their products.
The CBAM masterclass is part of the Bank’s continuous efforts to help businesses transition to a low carbon economy. Last year, UOB Malaysia launched the Jom Transform Sustainability Accelerator Programme3 to equip SMEs with the knowledge and tools to meet their stakeholder requirements.
1Securities Commission Malaysia - Capital Market Stability Review 2023
2 Malaysia External Trade Development Corporation - Trade Performance : December 2023 and January - December 2023
3Please see news release, ‘UOB Malaysia launches Sustainability Accelerator Programme to empower and accelerate SMEs’ sustainability journey’, 18 October 2023.