China’s concerns about Europe&#821 • Table.Briefings

The EU has placed decarbonization at the top of its agenda to fight climate change. To this end, it has put together the „Fit for 55“ climate package. One of the main pillars of this package is emissions trading – and the associated Carbon Border Adjustment Mechanism (CBAM). It is still at the planning phase. The EU is wrestling with the details. But one thing is clear: CBAM could hit China particularly hard.

The „Fit-for-55“ package of measures is huge, and many measures are causing heated debates. Nevertheless, the majority of the package is still to be adopted in 2022. Some issues have a major impact on the EU’s trading partners – and thus on China. The biggest issue in this respect is the planned Carbon Border Adjustment Mechanism (CBAM). The government in Beijing is looking at this project with great concern – also because the Chinese government does not quite know what is in store for its companies. The fear is that the EU’s new rules will increase the cost of importing Chinese goods.

China’s concerns about Europe’s CO2 border adjustment

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