The Chinese government described the commencement of the final phase of the European Union’s Carbon Border Adjustment Mechanism (CBAM) as discriminatory and unjust, and stated that it will take action in response. From 1 January, importers of high carbon-emitting products will have to pay a cost for the CO2 included in the products entering the EU. Following a transition period that will extend from 2023 to 2025, the system will begin requiring the acquisition and presentation of CBAM certificates, the cost of which will be linked to the European emissions trading market. This initiative aims to prevent carbon leakage and ensure fair competition between producers within the European Union and those outside it.
