KUALA LUMPUR (Aug 2): The Carbon Border Adjustment Mechanism (CBAM) introduced by the European Union (EU) is currently in its transition phase. However, views diverge on whether this measure is the best approach to address the global climate crisis or if it poses a disproportionate burden on developing countries. 

These perspectives were presented in a debate between Yin Shao Loong, deputy director of research at Khazanah Research Institute (KRI), and Michalis Rokas, ambassador & head of the EU delegation to Malaysia, at the Climate Finance Summit 2024 at Sasana Kijang, Kuala Lumpur, on Aug 1. 

CBAM is a carbon tariff imposed on carbon-intensive products imported into the EU to equalise the discrepancies in carbon prices globally. 

Yin challenged the implementation of CBAM by stating that the EU’s cumulative emissions for the past 200 years must be considered, and that it is unfair for other countries to address the consequences of the EU’s past actions. 

According to KRI’s National climate strategy: A balanced approach working paper published by Yin in 2022, the EU is the second largest (16.59%) climate polluter behind the US, when historical or cumulative emissions are considered, while Malaysia is responsible for only 0.37%, highlighting the significant disparity that must be addressed. 

Without considering historical emissions, the EU was the fourth largest greenhouse gas emitter in 2022, according to the Emissions Database for Global Atmospheric Research.

Yin emphasised the need for a balanced approach. “You cannot take a unilateral approach to dealing with climate change, because climate change is fundamentally a global problem.” 

Rokas acknowledged Yin’s claims, but responded that the EU had little knowledge of the climate crisis until a few hundred years ago, and said that the EU is currently tackling the issue by assuming responsibility and taking action now. 

He added that the EU has been the biggest contributor to climate financing, with €23 billion (RM113.38 billion) deployed in 2023. 

“In the Paris Agreement, there is a very clear distinction between developing and developed states, and there is the principle of common but differentiated responsibilities, respective capabilities and capacities,” said Rokas.

“We do not want to impose any tax, that's why we have the transition period [for CBAM]. I have offered the government many times officially to get technical assistance [from the EU], because the government here in Malaysia, like everywhere in the world, is thinking about how to achieve net-zero, how to decarbonise and how to generate income to move to cleaner technologies.”

In their closing statements, Yin and Rokas agreed that further discussions must occur to come to a mutual agreement and combat the current trajectory of climate emissions. 

“We do not want, with our actions, to discriminate, but we absolutely want to create and forge trusted and long-term partnerships, and for us, Malaysia is a priority,” said Rokas.