A UBS analyst in Asia mentioned that many Asian companies are not fully aware of the potential financial impacts of carbon pricing in the region and are not prepared for the possibility of carbon import duties. He stated that industries such as airlines, cement, steel, computer manufacturing, and shipping could be affected depending on various factors. The analyst also highlighted that a climate meeting in Denmark in December may lead to wider implementation of carbon pricing in Asia, affecting companies across all Asian markets within three years. Additionally, he noted that investors in Asia tend to overlook this issue due to their short-term focus and belief that governments in India and China are not prioritizing climate change. Smiles, the author of a significant UBS report titled "How could carbon pricing impact Asian company earnings?", recently examined three scenarios: implementing domestic carbon pricing in Asian countries, equalizing carbon import duties between wealthier and poorer nations, and imposing stricter climate change carbon import duties. He suggested that the second option was the most probable in the near future, citing indications from the United States and the European Union regarding potential duties on products from countries without greenhouse gas regulations. The Waxman-Markey climate bill, which is still pending in Congress, includes a proposal for an international reserve allowance program. This scenario would require American companies to purchase energy-intensive products from countries that do not share the same emissions goals as the United States. These companies would need to buy carbon allowances to compensate for the emissions associated with imported goods like cement or steel. According to Smiles, industries such as marine transport, airlines, steel manufacturers, and computer companies would be impacted by carbon duties, as exporters would be charged based on their CO2 emissions while domestic firms would not. With the implementation of carbon pricing in the US, more than half of global private consumption will be subject to carbon pricing. According to the report, Asian airlines such as Taiwan's Eva Airways, Thailand's Siam City Cement, and South Korean Hyundai Merchant Marine would be significantly impacted by the potential introduction of carbon-related import duties. The study found that under this scenario, Eva Airways' earnings per share could decrease by 34.3 percent, Siam City Cement's EPS by 10.6 percent, and Hyundai Merchant Marine's EPS by 51.4 percent based on 2010 earnings projections and a carbon price of US$9 per tonne. The worst-hit industries would include airlines, power utilities, marine transport, and cement makers if domestically focused firms and exporters are required to pay for the CO2 they emit. The study assumed that countries in Asia would implement domestic carbon taxes or carbon trading schemes aimed at reducing CO2 emissions by 20 percent. China Airlines is expected to experience a significant decrease in its 2010 EPS due to its high exposure to the United States and EU, 30 percent fuel cost exposure, and slightly negative earnings margin. On the other hand, Singapore Airlines' EPS is projected to only drop by 8.6 percent because of its 9.5 percent net profit margin and slightly smaller fuel cost exposure. The report suggests that the third scenario, where exporters of manufactured goods would bear the cost of the CO2 emissions of their home countries, seems less likely at the moment. This scenario aimed to pressure China, India, and other developing nations to join global efforts to combat global warming. The report examines the potential cost of a domestic carbon pricing regime for these countries. It was believed that the US and Europe placed a flat tax on all manufactured exports from various countries, with China facing an estimated carbon cost of $55 billion in 2007 and India facing a cost of $9 billion.