Thai Exporters Urged to Adopt EPD Labels for Compliance with EU’s CBAM

Bangkok: EPD labels are an important tool for managing CBAM (Common Circuit Attack) in the European Union. The Thailand Environment Institute revealed that the European Union's Cross-Border Carbon Pricing (CBAM) measure represents a new global trade rule that shifts the competitive advantage from "price" to "carbon information per unit of product." Thai exporters, especially SMEs, need to urgently understand and access systematic carbon information management tools to maintain long-term competitiveness. The institute recommends using EPD (Environmental Impact Assessment) labels, which display environmental impact information and use the same calculation process as the EU standard.

According to Thai News Agency, Dr. Thanomlap Ratchawat, Senior Researcher in the Green Labeling and Environmental Labeling Division at the Thailand Environment Institute, revealed that the EU's Carbon Border Adjustment Mechanism (CBAM) came into effect on January 1, 2026. This measure emphasizes the disclosure of greenhouse gas emissions for each product unit, becoming a crucial condition for exports, particularly for the first five product groups affected: cement, steel, aluminum, fertilizers, and electricity.

Without clear and verifiable information, businesses may face higher costs or lose opportunities to access the European market. Furthermore, many countries, such as Canada, the United States, Japan, and Latin American nations, are studying and considering similar measures to CBAM, aiming to protect domestic producers from imported goods that have no environmental cost and create fair competition in the modern global trade arena.

Dr. Thanomlap expressed concern for small and medium-sized enterprises (SMEs) that may lack both the technical understanding and resources to compile environmental data. He recommended that SMEs start by accessing the following essential tools:

- Utilize the database and reporting system of the Thailand Greenhouse Gas Management Organization (TGO).

- Seek support from the Office of the Small and Medium Enterprise Promotion (OSMEP), which provides funding for data preparation and registration.

- Develop Environmental Information Labels (EPDs) for products in collaboration with the Thailand Environment Institute.

EPD (Environmental Product Declaration) is a label that displays information on the environmental impact of a product throughout its life cycle (Life Cycle Assessment - LCA), starting from:

- Acquisition of raw materials

- Manufacturing process

- Transportation

- Usage

- Waste product management

The impacts are expressed in numerical values across various areas, such as greenhouse gas emissions, ozone depletion, acid rain, and the use of natural resources.

Importantly, the EU's CBAM (Common Trade Assessment) does not allow manufacturers to calculate this themselves; it must undergo third-party verification. Since the EPD (Electronic Product Declaration) system already exists, it can be confidently used as evidence to support the export of goods to markets with strict regulations.