The EU’s Carbon Border Adjustment Mechanism: A Key Driver of Global Green Economic Transition

Abstract

The study analyzes the European Union’s Carbon Border Adjustment Mechanism (CBAM) as a turning point in the institutionalization of the global green economy. CBAM
requires imports to bear carbon costs comparable to those of goods produced within the EU, thereby reducing carbon leakage and promoting EU-standard MRV. For Vietnam CBAM creates competitive pressure for major export sectors such as steel, cement, aluminum, and fertilizers, while also opening opportunities for technological innovation, carbon market development, and greener supply-chain upgrading before the official fee phase begins in 2026.