MANAGING THE THAI ALUMINUM INDUSTRY TO SUPPORT THE CARBON BORDER ADJUSTMENT MECHANISM

Abstract

This academic article aims to analyze the European Union’s Carbon Border Adjustment Mechanism (CBAM), its impacts on Thailand’s aluminium industry, and management approaches to support adaptation to emerging global trade regulations within the context of a low-carbon economy. The article is based on the synthesis and analysis of academic documents, policy reports, research studies, and related sources. The findings indicate that CBAM is a trade-related mechanism designed to prevent carbon leakage and promote fair competition by requiring imported products to account for greenhouse gas emissions generated throughout their production processes. As a highly energy-intensive sector with significant greenhouse gas emissions, Thailand’s aluminium industry faces several challenges, including carbon measurement, reporting and verification requirements, environmentally friendly production adjustments, energy efficiency improvements, and the management of additional carbon-related costs. Nevertheless, CBAM should not be viewed solely as a trade barrier; it also presents an opportunity for Thailand’s aluminium industry to enhance its competitiveness and align with sustainable development principles through the adoption of clean technologies, efficient resource utilization, and circular economy practices. The article further emphasizes that effective adaptation to CBAM requires strong governmental support in policy formulation, investment promotion, carbon data infrastructure development, and collaborative partnerships among government agencies, private enterprises, academic institutions, and other relevant stakeholders. In response, the article proposes the A-C-G Model, consisting of Aluminium Industry Transformation, Carbon Management System, and Governance and Collaborative Network, as a strategic framework for enhancing competitiveness, mitigating the impacts of environmental trade measures, and supporting the sustainable development of Thailand’s aluminium industry under the transition toward a low-carbon economy.