After a two-week hiatus, the European Parliament finally passed the revised Carbon Border Adjustment Mechanism (CBAM). Consequently, China further loses its price advantage in exporting carbon-intensive products to Europe, a second blow to the country’s exports after 32 nations stopped preferential tariff treatment at the end of 2021.
CBAM aims at ensuring an equivalent carbon price for domestic and imported production on selected goods, and thereby encouraging the EU’s trading partners to reduce their carbon emissions.
On June 22, the European Parliament passed three key climate bills, including the Emissions Trading System (ETS) reform, the CBAM, and a new Social Climate Fund….