On April 18, the European Parliament approved several key pieces of legislation in the "Fit for 55" 2030 package, including the inclusion of shipping in the emissions trading system, the phasing out of free carbon credits, a carbon tariff adjustment mechanism (CBAM), and the establishment of a social environmental fund.
As the name suggests, the EU's "Fit for 55" programme refers to a 55 per cent cut in greenhouse gas emissions by 2030 compared with 1990 levels.
For Chinese investors concerned about export policy, it is natural to care about the EU's carbon Tariff Adjustment Mechanism (CBAM), which was approved by the European Parliament on Tuesday. Commodities covered by the CBAM include iron, steel, cement, aluminum, fertilizer, electricity, hydrogen and, under certain conditions, indirect emissions, as well as screws and bolts and downstream products similar to steel products, according to a notice from the European Parliament. Merchants importing these goods pay the difference between the carbon price in the producing country and the price of carbon allowances in the EU ETS. The CBAM will be phased in from 2026 until 2034. It will be accelerated in line with the phasing out of free allowances in the EU Emissions trading system.
Before the end of the transition period, the EU will also assess whether to extend the scope to other goods at risk of carbon leakage, such as chemicals.
At present, China has not issued the relevant standards for the calculation of chemical carbon footprint, and the composite material industry has not felt the pressure from the "global". The neglect will inevitably lead to the lack of basis for enterprises to carry out carbon footprint inventory and verification, prepare carbon footprint report, and affect import and export and carbon trading.
