Experts say that the European Union’s Carbon Border Adjustment Mechanism (CBAM) through supply chain regulations and trade measures would be a game changer in tackling emissions. The EU is set to introduce the CBAM, which in effect will make use of trade policy in an unprecedented manner to tackle carbon emissions, they said. Dr Mohammad Abdur Razzaque, Chairman of Research and Policy Integration for Development (RAPID), told UNB the EU has been maintaining an emission trading system (ETS) to reduce greenhouse gas emissions of high carbon-emitting sectors. Also read: Power Division, USAID sign agreement to cut carbon emissions. Carbon price under the EU-ETS reached a record high at EUR 98 per tonne of CO2 on 18 August 2022. Since then it has somewhat fallen and fluctuates around EUR 70, which will be effective in trade in the EU market after 2026, he said. Dr Razzaque, also an international trade expert, said the embedded carbon content in imports will be priced equivalent to the price of CO2 faced by EU domestic firms under ETS. The transition phase is 2023-2025 -in this period importers will have to report emissions embedded in their goods without paying any charge, he pointed out. Also read: IFC-led PaCT helped factories cut carbon and water footprints: BGMEA The EU and EU parliament is working on such regulation to bring about execution by 2026, which may be shifted to 2027. Once in operation, the importers will have to pay for embedded emissions, buying CBAM certificates, Dr Razzaque said. If a non-EU exporter establishes a carbon market, the corresponding cost will be deducted from total CBAM charges, he said. According to the European Commission, the CBAM will initially apply only to a select number of goods at a high risk of carbon leakage, viz., cement, iron and steel, aluminum, fertilizers, and electricity, and will be operational from January 2023, said Md Jillur Rahman, Assistant Professor, Economics Department, Jagannath University. Read Summit, JERA to collaborate for developing a carbon neutral roadmap He said that both the European Council and Parliament have adopted their positions on the Commission's proposal for a CBAM. “The European Parliament proposes a gradual implementation of the CBAM beginning in 2027, and full implementation beginning in 2032 when the free allowances are completely phased out,” Jillur added, who is doing research on CBAM.  The Parliament proposes to broaden the scope of sectoral coverage to include organic chemicals, plastics, hydrogen, and ammonia. Gradually the coverage should be extended to cover all sectors under the EU ETS, he said. Read MVCs' CSOs demand end to carbon emission instead of 'net-zero' target Jillur said, the European Parliament, Council, and Commission will now engage in a trialogue (three-way dialogue) and discuss the differing viewpoints of the three institutions. The political process may be completed by the end of 2022 to adopt the final CBAM regulation for the Union. Professor Abu Eusuf, department of development studies, Dhaka University, said many countries, including India, Vietnam, and China are taking measures to reduce carbon emissions to address the negative impact of climate change in line with the Paris Agreement. “Bangladesh in its updated Nationally Determined Contribution (NDC) commits to unconditionally reduce greenhouse gas emissions by 6.73 percent (27.56 MtCO2e) from the business-as-usual scenario by 2030,” he said. Read Climate change to ultimately cost $100,000 per ton of carbon Prof Eusuf said that subject to technology and know-how transfer, and finance and investment support from the international community, Bangladesh intends to reduce GHS emissions by an additional 15.12 percent (61.9 MtCO2e). “Bangladesh’s NDC commitments and actions for reducing carbon emissions appear to be much less ambitious compared to other comparable countries. China commits to reducing carbon dioxide emissions per unit of GDP by 60 to 65 percent (from the 2005 level) by 2030, while India intends to do the same from 33 to 35 percent,” he added. The experts said Bangladesh’s major competitors have either already established or are in the process of developing carbon markets locally. Read Environmental degradation is a burning issue, but its impact is not yet measured: Statistics Secretary China launched its carbon market in 2021; Vietnam and India are in the process of establishing their internal carbon market. Vietnam wants to formally launch its carbon market in 2028. The 8th Five Year Plan of Bangladesh aims to introduce green taxation on the consumption of fossil fuels, but it is not clear yet how this will be implemented. However, no progress has been made so far. Therefore, the CBAM can disproportionately affect Bangladesh relative to other competitors. Read Govt committed to protect ozone layer: Environment Minister

Global Climate Strike 2022 was observed in Bangladesh with hundreds of young people turning out in front of Jatiya Press Club in Dhaka today. ActionAid Bangladesh, with 72 countries, organized the Climate Strike in collaboration with Fridays for Future and youth groups. The goal of the climate strike is to urge all nations to act immediately in support of climate justice — by sending a loud, yet nonviolent statement, according to a press release. Read: PM to focus on peace & climate change in her UNGA speech: Momen The youngsters demanded that the government declare a ‘Climate Emergency’ and that world leaders prioritize ‘people not profit’.

Some 78 per cent multinational companies plan to remove by 2025 suppliers that endanger their carbon transition plan according to a study by Standard Chartered. According to Carbon Dated, which looks at the risks and opportunities for suppliers in emerging and fast-growing markets as large corporates transition to net zero, MNCs expect to exclude 35 per cent of their current suppliers as they transition away from carbon. The study also found that-- Supply chain emissions account for an average of 73 per cent of MNCs’ total emissions and More than two thirds (67 per cent) of MNCs say tackling supply chains emissions is the first step in their net-zero transition, rather than focusing on their own carbon output. It also said that Suppliers in 12 key emerging and fast-growing markets can share in USD1.6 trillion worth of business if they can remain part of MNC supply chains. According to the study the MNCs are increasing the pressure on their suppliers to become more sustainable, with companies based in emerging and fast-moving markets facing the biggest challenge. Some 64 per cent of MNCs believe emerging market suppliers will struggle more than developed market suppliers to meet their emission reduction targets, with a further 57 per cent prepared to replace emerging market suppliers with developed market suppliers to aid their transition. MNCs are concerned that emerging market suppliers are failing to keep pace with for two key reasons; insufficient knowledge and inadequate data. Some 56 per cent of MNCs believe that the lack of knowledge among emerging market suppliers (41 per cent for developed market suppliers) is a barrier to decarbonisation. Also read: Carbon dioxide levels hit 50% higher than preindustrial time With MNCs struggling with the quality of data, two-thirds are using secondary sources of data to plug the gap left by supplier emissions surveys. A further 46 per cent say that unreliable data from suppliers is a barrier to reducing emissions. The study also reveals that the current approach taken by MNCs could create a USD1.6 trillion opportunity for the net-zero club: those businesses reducing emissions in line with MNC net-zero plans. This represents a major opportunity for net-zero-focused suppliers across the 12 markets in this study, but also quantifies the potential losses to companies not embracing net-zero transition. Market                 Annual export revenue at risk China                  USD512.3bn India                   USD273.7bn Hong Kong           USD205.5bn Singapore            USD146.6bn South Korea         USD142.5bn The UAE              USD119.6bn Malaysia              USD65.3bn Nigeria                USD34.3bn South Africa        USD33.7bn Indonesia            USD25.6bn Bangladesh          USD18.7bn Kenya                 USD3.9bn MNCs are also willing to spend more on net-zero products and services. Some 45 per cent said they would pay a premium, of 7 per cent on average, for a product or service from a net-zero supplier. Also read: Carbon neutrality by 2050: The world's most urgent mission MNCs are exploring other ways to help their suppliers’ transition to net zero. Some 47 per cent are offering preferred supplier status – a sales advantage – to sustainable suppliers, and 30 per cent are offering preferential pricing. Some MNCs are going further, offering grants or loans to their suppliers to invest in reducing emissions (18 per cent) or data collection (13 per cent). Bill Winters, Group Chief Executive of Standard Chartered said: “It’s no surprise that as multinational companies transition to net zero, they will have to ask to their suppliers to evidence their own transitions. However, suppliers – especially those in emerging and fast-growing markets - cannot go it alone. “MNCs need to incentivise their suppliers to help them kick start their transition journey, but governments and the financial sector have a role to play too by creating the right infrastructure and offering the necessary funding. “Decarbonisation is vital for the survival of the planet, but a vibrant trade ecosystem is essential for maintaining an interconnected global economy. We must work together to ensure the supply chain is decarbonised in a way that delivers shared prosperity across the world.” Carbon Dated surveyed 400 sustainability and supply chain experts at MNCs across the globe.

China’s No. 2 leader set a healthy economic growth target Friday and vowed to make the nation self-reliant in technology amid tension with the U.S. and Europe over trade and human rights. Another official announced plans to tighten control over Hong Kong by reducing the public’s role in government.

The world’s hopes for curbing climate change hinge on action by two giant nations whose relations are deteriorating: China and the United States. The two countries both say they are intent on retooling their economies to burn less climate-wrecking coal, oil and gas. But tensions between them threaten their ultimate success.

Japan will strengthen efforts to support Asian countries' shift from coal to liquefied natural gas for use in power generation to reduce carbon emissions, in the hope of lowering procurement costs for the energy source, the industry ministry said.

Prime Minister Sheikh Hasina on Wednesday stressed the need for robust international climate coalitions to reduce the carbon emission effectively and save the future generations.