With its Green Deal and its commitment, now registered in law, to become the first climate neutral continent by 2050, the EU is keeping up to its responsibility in the fight against climate change.

But as the EU raises its own mitigation ambition including decarbonisation targets for EU industries and as long as less stringent mitigation policies prevail in many non-EU countries, there is a risk of so-called ‘carbon leakage'. Carbon leakage occurs when companies based in the EU move carbon-intensive production abroad to countries where less stringent mitigation policies are in place than in the EU, or when EU products get replaced by more carbon-intensive imports. This would undermine EU efforts to decrease emissions and ultimately global efforts for mitigating climate change.

The EU’s Carbon Border Adjustment Mechanism (CBAM) is the EU’s landmark tool to put a fair price on greenhouse gases (GHGs) emitted during the production of energy intensive goods, a price equivalent for goods imported and domestic production. The CBAM complements the strengthening of the EU Emission Trading System (EU ETS) which will allow an acceleration of decarbonisation efforts by EU industries. As of 1^st January 2026 it applies to imports of certain goods whose production is carbon intensive and at most significant risk of carbon leakage: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. It will de facto, not only ensure that EU efforts to protect the climate are not lost, but also incentivize cleaner industrial production in non-EU countries. By 2030, the scope of CBAM might be extended to apply to a limited number of additional sectors that are covered by the EU ETS and that are at most at risk of carbon leakage.

On 1 October 2023, the CBAM entered into application in its transitional phase, with the first report for importers due for 31 January 2024.

The Delegation of the European Union to China is proud to invite you to this hybrid event designed for Chinese stakeholders, including companies, academics, experts and others.

The very EU officials who designed the CBAM and are in charge of its implementation, led by Mr. Gerassimos Thomas, Director General for Taxation and Customs Union at the European Commission, will explain and discuss with participants:

• the rationale behind addressing carbon leakage risk in climate policy tools,
• the gradual phasing in of CBAM,
• the role of various actors, especially the obligations of importers in the transitional period
• rules on, monitoring and reporting in the transitional period
• general approach to carbon price and carbon tax measures that could  recognized under CBAM,
• review of the CBAM's functioning during its transitional phase.

“The EU’s CBAM: rationale for climate policy, and implications for Chinese companies”

Thursday 16 November, Beijing

Hybrid event

Agenda

0815-0900         Registration

0900-0915         Keynote speech by H.E. Mr. Wopke Hoekstra, European Commissioner for Climate Action

09015-0930       Keynote speech by Mr. Gerassimos Thomas, Director General for Taxation and Customs Union, European Commission

0930-1100         Panel discussion on the rationale of addressing carbon leakage risks

This panel will focus on the broader policy framework in the EU, esp. the Green Deal, which led to choosing to design a CBAM. It will discuss how other jurisdictions address carbon leakage risks that are inherent to ambitious carbon neutrality goals/objectives. One EU representative and several experts and a moderator will discuss the measure, with 30 minutes dedicated to Q&A with people in the room and online.

Moderator: Renato Roldao, Managing Director, ICF

Mr. XIE Allan, Lead, Deloitte Sustainability & Climate Institute

Ms. LIU Qingzhi, Deputy General Manager, China Environmental United Certification Center

David BOUBLIL, Deputy Head of Unit, CBAM, Energy and Green Taxation, DG TAXUD, European Commission

1100-1200         In-depth presentation of CBAM, with a focus on the roles of various actors, especially the obligations of importers - an EU speaker will give a more detailed presentation, with a few questions from a moderator

Moderator: Professor DUAN Maosheng, Deputy Director, Institute of Energy, Environment and Economy, Tsinghua University

Martin BECKER, Deputy Head of Unit, Economic Analysis & Taxation of Exempted Sectors, DG TAXUD, European Commission

1200-1330         Lunch break and time for informal networking

1330-1530         Panel session on Monitoring and Reporting in the transitional period

After a presentation of the monitoring and reporting GHG emissions during the transitional CBAM period, with a focus on iron and steel/ and a presentation of relevant provisions in China, the two presenters will be joined by experts and a moderator for a discussion. They will also take questions from the audience physically present and online.

Moderator: Professor DUAN Maosheng, Deputy Director, Institute of Energy, Environment and Economy, Tsinghua University

Ms. ZHANG Lixin, Deputy Director, China Quality Certification Center (CQC)

Ms. XIONG Hui, Chief Expert, Antaike Information Company

Ms. CHEN Chunyan, Head of Division of Green and Low Carbon Business, CEPRI Certification Body

Thomas BRINKMANN, Policy Officer, CBAM, Energy and Green Taxation, DG TAXUD, European Commission

1530-1600         Coffee/tea break

1600-1700         Panel session on carbon price, carbon taxes and future development of the EU’s CBAM

An EU presenter will briefly explain how different carbon price or carbon taxation schemes paid in host countries can be taken into account after CBAM fully enters into application in 2026, then be joined by experts and a moderator for a discussion. They will also take questions from the audience physically present and online. An EU speaker will explain how the EU’s CBAM will develop or be further elaborated in the future.

Moderator: Ms. WANG Yu, Associate Professor, Institute of Energy, Environment and Economy, Tsinghua University

David BOUBLIL, Deputy Head of Unit, CBAM, Energy and Green Taxation, DG TAXUD, European Commission

Ms. LI Bing, Director, Low Carbon Development Centre, China Metallurgical Industry Planning and Research Institute-MPI

Ms. ZHANG Xi, Project Management Director, Technical Center, China Classification Society Certification Co., LTD

1700-1715         Closing

Links

CBAM related policies and regulations can be found here.

The event will be livestreamed here.