China’s Emissions Trading System: • Table.Briefings

The Chinese Emissions Trading System still has numerous shortcomings and is not an effective climate protection instrument. Beijing wants to tighten it up – but it remains questionable just how much. This has trade policy consequences for Europe, especially after the introduction of the Carbon Border Adjustment Mechanism.

In theory, the Carbon Border Adjustment Mechanism (CBAM) applies to all importers to Europe: Anyone who pays a CO2 price on their products in the country of production gets this credited when calculating the climate tariff CBAM. This applies to all products covered by the CBAM: Cement, fertilizer, electricity, hydrogen, iron, steel and aluminum.

China’s Emissions Trading System: a problem for the CBAM

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