The new carbon border mechanism (CBAM) introduced by the EU may limit economic growth prospects and affect global relations since it includes the trade sector in the prevailing issue of climate change, according to a Chinese ministry official.
Liu Youbin, China’s Ecology and Environment ministry’s representative told the media on Jul 26 that the tax is unfair and should take individual levels of economic development into account. Analysts, however, refute this claim stating that the effects may not be as adverse as stated.
The EU’s new regulation to curb global pollution especially in steelmaking was released on Jul 16 and includes several changes in the EU emissions trading system, CBAM, and a revised energy tax directive.