The Impact of the EU Carbon Border Adjustment Mechanism on China’s Exports and Suggestions on Countermeasures

Zhuo Chen

doi:10.54254/2753-7048/64/20240974

Research Article

Open access

Published on 18 October 2024

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Chen,Z. (2024). The Impact of the EU Carbon Border Adjustment Mechanism on China’s Exports and Suggestions on Countermeasures. Lecture Notes in Education Psychology and Public Media,64,56-63.

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The Impact of the EU Carbon Border Adjustment Mechanism on China’s Exports and Suggestions on Countermeasures

Zhuo Chen *^,1,

¹ Hong Kong University of Science and Technology

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2753-7048/64/20240974

Abstract

The European Parliament plans to gradually introduce the Carbon Border Adjustment Mechanism in 2023, with a complete implementation set for 2026. As an essential trading partner of the EU, China will shoulder an additional carbon border tariff due to the lack of low-carbon technology and the dependence on extensive development patterns. These extra costs will undermine the profit margins of China’s carbon-intensive industry sectors, possibly resulting in decreased exports and a restructuring of production. The latest estimate of the exact costs of China’s embedded carbon exports to the EU is a problem that has received limited academic attention. Using the IPCC carbon emission accounting methodology and non-competitive single-region input-output analysis, this research precisely measures the embedded carbon in China’s exports to the EU for the nine most affected industries. Furthermore, this study quantifies the impact of the CBAM on China’s exports of these nine industry sectors. The findings suggest that China should improve the domestic carbon emission trading system and take the initiative to participate in formulating a carbon pricing consultation and dialogue mechanism, mitigating the negative impact of the EU CBAM on exports.

Keywords

Carbon border adjustment mechanism, IPCC, Input-output analysis, Climate policy

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References

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Cite this article

Chen,Z. (2024). The Impact of the EU Carbon Border Adjustment Mechanism on China’s Exports and Suggestions on Countermeasures. Lecture Notes in Education Psychology and Public Media,64,56-63.

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About volume

Volume title: Proceedings of the 2nd International Conference on Global Politics and Socio-Humanities

Conference website: https://2024.icgpsh.org/

ISBN：978-1-83558-591-7(Print) / 978-1-83558-592-4(Online)

Conference date: 20 December 2024

Editor：Enrique Mallen

Series: Lecture Notes in Education Psychology and Public Media

Volume number: Vol.64

ISSN：2753-7048(Print) / 2753-7056(Online)

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