China weighs response to EU carbon border tax
CBAM expected to have significant long-term impact on trade with EU, warns speaker at country’s annual parliamentary session
Plans by the EU to impose a carbon tax on imports under its Carbon Border Adjustment Mechanism (CBAM) will have a significant long-term impact on China’s exports to the bloc and could trigger a recalibration of carbon-pricing structures in Asia-Pacific, analysts say. The CBAM will put a carbon tax on incoming goods to the EU at the border, replacing a system where free allowances were issued to carbon-intensive industries. The free allowances system will be phased out on a sliding scale as the CBAM is phased in, starting in 2026 and with a complete phase-out by 2034. “The impact on China-EU trade cannot be ignored. China should be prepared for a rainy day” Jun, National Academy of Deve

Also in this section
22 July 2025
Sinopec hosts launch of global sharing platform as Beijing looks to draw on international investors and expertise
22 July 2025
Africa’s most populous nation puts cap-and-trade and voluntary markets at the centre of its emerging strategy to achieve net zero by 2060
17 July 2025
Oil and gas companies will face penalties if they fail to reach the EU’s binding CO₂ injection targets for 2030, but they could also risk building underused and unprofitable CCS infrastructure
9 July 2025
Latin American country plans a cap-and-trade system and supports the scale-up of CCS as it prepares to host COP30