Impact of EU carbon border adjustment mechanism on China's steel industry ——Based on product carbon footprint perspective
LIU Xia-qing1,2, ZHAO Li-hua3
1. School of Applied Economics, University of Chinese Academy of Social Sciences, Beijing 102488, China; 2. The Fifth Institute of Electronics of Ministry of Industry and Information Technology, ISOM, Beijing 100041, China; 3. Certification Center, China Electronics Standardization Institute, Beijing 100007, China
Abstract：As the most widely used industrial raw material, steel is included in the list of the first batch of carbon border adjustment by the EU Carbon Border Adjustment Mechanism (CBAM). As China is the world's largest producer, consumer, importer and exporter of steel, the implementation of CBAM is bound to have a significant impact on China's steel industry and supply chain enterprises. Based on the latest CBAM bill, the carbon emission accounting method of CBAM products was systematically studied from perspective of "cradle to gate" carbon footprint of steel products, and the impact of CBAM on steel industry was measured according to the characteristics for carbon footprint of steel products. The study shows that when the carbon price difference between China and Europe is 50 Euros per ton, Chinese steel enterprises face an additional burden of 332 to 403 million Euros. When the difference between Chinese and European carbon prices is 100 Euros per ton, the additional burden for China's steel enterprises is from 664 to 807 million Euros. The impact on the steel industry as a whole is not significant. However, the spillover effect of CBAM through indirect trade on China's steel industry and upstream and downstream industries should not be underestimated. This study will provide an important reference for the steel industry to cope with CBAM and future low carbon transformation of supply chain companies.
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2023, Vol. 33 
