China and the European Union’s Carbon Border Adjustment (CBAM)
In October 2023, the EU formally kicked off its Carbon Border Adjustment Mechanism (CBAM). When it is implemented fully, the CBAM will represent a considerable financial challenge for producers seeking to sell goods into the EU, especially goods with high levels of embedded carbon emissions. The impact on some Chinese producers will be considerable, but many questions remain as this policy is still in the phase-in period. In this edition of Just the FAQs, we examine the main features of CBAM and the likely impact on producers in China.
