What do the flaws of China’s ETS m • Table.Briefings

The low efficiency of China’s emissions trading impacts Europe’s trade policy. By the time the European Carbon Border Adjustment Mechanism (CBAM) is in effect, at the latest, the EU Commission will have to assess the Chinese instrument to define the climate tariff. This is where the poor data situation will become a problem.

In theory, the climate tariff CBAM applies to importers to Europe: Anyone who pays a carbon price on their products will receive a corresponding deduction when calculating the carbon import fee. This applies to all products that fall under the CBAM: cement, fertilizer, electricity, hydrogen, iron and steel, and aluminum.

What do the flaws of China’s ETS mean for Europe?

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