UOB MALAYSIA INTRODUCES MASTERCLASS TO PREPARE BUSINESSES FOR EU’S CARBON BORDER TAX

KUALA LUMPUR (May 8): United Overseas Bank (M) Bhd (UOB Malaysia) has launched a programme to assist businesses in understanding and preparing for the European Union's (EU) carbon border adjustment mechanism (CBAM), a carbon border tax that is set to take effect in 2026 and affect some 75% of Malaysian exports to the region.

This new tax, according to UOB Malaysia, will assign a fair price on carbon emitted during the production of carbon-intensive goods entering the EU, to encourage cleaner industrial production in non-EU countries.

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, the bank said in a statement.

“The CBAM is expected to affect 75% of Malaysian exports to the EU, Malaysia’s fourth largest export market. This new regulatory requirement will definitely further drive the importance of sustainability in the global supply chain, said UOB Malaysia's chief executive officer Ng Wei Wei.

Hence, the bank, which remains focused on facilitating global trade, introduced the programme — Carbon Border Adjustment Mechanism Supply Chain Imperatives Masterclass — "to help local businesses improve their competitiveness by providing them with the knowledge to prepare for the implementation of EU’s new regulation”, said Ng.

The programme, curated by UOB Malaysia and PricewaterhouseCoopers Malaysia (PwC), comprises three parts.

Businesses first have to identify 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. This is followed by the introduction of sustainable financing solutions made available to help businesses decarbonise and reduce the embedded emissions in their products.

2024-05-08T01:19:42Z dg43tfdfdgfd