Page 129 - Research on Financial Development Mechanism and Path of Forestry Carbon Sequestration in Developing Countries under Double Carbon Targets

Chapter 3 Low-carbon and Economical E-commerce

inability to adapt to climate regulatory policies such as CBAM in the future. On the one
hand, enterprises need to formulate emission reduction plans and carbon management
strategies and make “decarbonization” adjustments, such as finding suppliers with high-
er carbon management level, improving production process, increasing the proportion
of green energy use, and adopting low-carbon life technology. On the other hand, it is
also necessary to pay close attention to the compliance requirements of the CBAM and
the EU carbon price. For enterprises, being familiar with the CBAM rules is beneficial
to maintaining smooth communication with EU customers and avoiding the passive
situation or even loss of EU customers’ orders when negotiating prices due to poor in-
formation or data compliance issues. At the same time, if China enterprises plan to take
some actions to reduce emissions and carbon dioxide before 2026, they can consider
disclosing their emission reduction plans to EU customers, so that EU customers can
control the carbon cost of relevant products within a controllable range, thus easing the
concerns of EU customers about the future increase in carbon cost. Based on the cur-
rent calculation method of implicit emissions from products, the detailed rules issued
by the European Union need to be further clarified. Therefore, enterprises in China still
need to continue to pay attention.
From the upstream raw material side, the short-term impact of CBAM on China is
limited. The reason is attributed to two points: First, the proportion of China’s exports
to the EU that are included in the CBAM is not high. According to the data of the Gen-
eral Administration of Customs in official website, in 2022, China’s total exports to the
EU amounted to RMB374.3 billion, of which the exports of steel, aluminum, cement
and chemical fertilizers were RMB37.2 billion, RMB35.5 billion, RMB3 billion and
RMB2.2 billion respectively, accounting for 0.99%, 0.95%, 0.08% and 0.05% of the
total exports to the EU respectively, totaling 2.07%. China does not export electricity
to the EU, and the amount of hydrogen exported is negligible. On the whole, the indus-
tries included in CBAM account for a relatively small share of the EU’s export mix.
In contrast, steel and aluminum are slightly more affected. Second, at present, CBAM
charges direct emissions of iron and steel, aluminum and hydrogen, and direct and
indirect emissions of cement, electricity and chemical fertilizers, but they are mainly
limited to the production and processing process of the products themselves and do not
involve the upstream and downstream of a wider supply chain for the time being. They
are not the carbon footprint of the whole life cycle.
In terms of downstream products, the long-term impact of CBAM on China cannot
be underestimated. The setting of CBAM brings a lot of uncertainty. For example, be-

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