Emergency 20 plaza torrent wont work7/30/2023 ![]() The tariff per mt of embedded emissions will be charged based on the difference between the carbon price in EU ETS and the price paid in the exporting country's ETS or domestic carbon tax scheme. This translates into 201.47 million mtCO2e of total embedded emissions to be charged under the CBAM, 85% from iron and steel, 6% from cement and 4% from aluminum, according to Global Trade Atlas data. The power generation sector, the first and only industry covered by China ETS so far, accounts for about 40% of the nation's total emissions, iron and steel account for 15.2%, building materials account for 13.2%, and non-ferrous metals account for another 1.2%, industry data showed.Ĭarbon traders expect the ETS expansion to take place within the next two years, facilitated by pilot carbon markets set up since 2013 at the provincial level, where the target industries have already conducted emissions data collection and reporting to prepare for a national-level rollout.ĮU's CBAM will target the cement, iron and steel, aluminum, fertilizers, electricity and hydrogen sectors for which importers will start reporting emissions from October and start paying for them from 2026, at a price mirroring the EU ETS.Ĭhina is among the exporting countries that will be heavily impacted by CBAM as the cost-competitiveness of its products, especially iron and steel, will be hit.įrom 2026 to 2040, China is expected to export 868.94 million mt of commodities that fall into the current CBAM scope, 42% of which is iron and steel, 8% is cement and 6% is aluminum, Michael Evans, senior carbon market analyst with S
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