The EU Carbon Border Adjustment Mechanism (CBAM) now requires importers of steel, aluminium, cement, fertilisers, and hydrogen to pay a carbon price on embedded emissions. For ASEAN countries like Malaysia, Indonesia, and Vietnam, which export significant volumes of these materials to Europe, the mechanism creates both risks and opportunities. Producers must measure emissions, report carbon data, and upgrade processes or risk losing competitiveness in the EU market. Job losses are possible in steel and aluminium supply chains, especially for small and medium enterprises with limited resources. But the green transition also opens roles in renewable energy, industrial electrification, and energy efficiency. The article explains how ASEAN's 350 million workers could be affected and what steps governments might take to prepare the workforce for low-carbon manufacturing.
