Carbon Border Adjustment Mechanism

• - Achieves eco-friendly certification from the international certification agency, UL Solutions
  SEOUL, South Korea, Dec. 14, 2023 /PRNewswire/ -- Samyang Group has acquired international certification for plastic materials recycled from fishing nets, and is leading in eco-friendly management by establishing a Life Cycle Assessment (LCA) system for carbon emission reduction.
• Samyang Corporation, a chemical/food business subsidiary of Samyang Group (CEO Ho-sung Kang), recently announced that nine types of their recycled fishing net plastic (nylon) material, "TRIECO 4D," have acquired global certification for ocean plastic recycling, "ECV Ocean Plastic (2809-3)," from the international testing and certification agency, UL Solutions.
• The ECV Ocean Plastic certification verifies the properties of recycled ocean waste plastic by confirming its mineral content, characteristics, and the proportion of recycled material.
• He added, "As the uses for recycled fishing net materials expand, we plan to also commercialize these materials in household goods, furniture, and fashion accessories."

• This is because Cornetto’s UK-headquarted parent company, Unilever, is still operating in Russia after its invasion of Ukraine, alongside many other western firms such as PepsiCo.
• The sense of normality they give to Russian citizens also arguably fosters support for the invasion of Ukraine.
• Companies still doing business in Russia also hurt the citizens of the countries they come from.
• It’s not “trying to protect or manage” its business in Russia, the company said, but “exiting is not straightforward”.

A tax on the cost of war

• The coalition of sanctioning countries must first implement a tax on a western company’s Russian revenues.
• The tax would cover the company’s sales, based on the goods and services bought by people in Russia.
• The OECD’s Pillar 2 tax agreement uses this principle in its aim to end the practice of fictionally locating profit in tax havens.
• And if that country does not impose the extra charge, other countries in which the firm is active can collect the unpaid tax.

What about non-western companies?

• It may also make it even more profitable for other countries to trade with Russia.
• To avoid such “leakage”, non-western companies who trade with the west and continue to do business with Russia should also be made liable for the tax.
• The approach is simple: if a company wants to do business with the west, it must pay a fine for any trade in Russia.
• French bank Société Générale paid US$1.3 billion to the US government in 2018 as a punishment for providing financial services in Cuba.

• Today, Allianz Trade releases the second edition of its Global Survey.
• This echoes the less favourable environment for global trade in 2023: Allianz Trade expects global trade to grow slowly in terms of volume (+0.7% vs. +3.8% in 2022) and to decline in terms of value (-0.1% vs. +9.7% in 2022).
• This growing interest could also unlock trade financing for Small and Medium Enterprises that were previously shying away from global trade,” states Ano Kuhanathan, Head of Corporate Research at Allianz Trade.
• We predict trade and credit risk today, so companies can have confidence in tomorrow
  Allianz Trade is the global leader in trade credit insurance and a recognized specialist in the areas of surety, collections, structured trade credit and political risk.

• The deal brokered by Freight Investor Services (FIS) paves the way for hedging based on the supply and demand dynamics of the ammonia market in Europe; Building block for future blue and green ammonia trading
  LONDON, April 21, 2023 /PRNewswire/ -- Global energy and commodity price reporting agency Argus announced that the first-ever futures ICE Ammonia Outright – Argus Ammonia NWE CFR Future contract has traded between counterparties in a deal brokered by Freight Investor Services (FIS).
• The first step in this process is trading ammonia futures based on the current market, which enables an ammonia forward curve to be developed that will provide the basis for more sustainable low-carbon ammonia investment decisions.
• Grey ammonia futures can act as a base contract to price future blue and green ammonia trading, or as a basis to wherever that green or blue ammonia is geographically located.
• ICE's ammonia contract will be a cornerstone of price discovery and risk management as ammonia is unquestionably one of the most important fuels in our energy transition to a cleaner future.