BEIJING, June 5 (Reuters) - China announced plans on
Wednesday to better measure the carbon content of its products -
a key step in reaching its own climate goals and meeting tougher
carbon standards overseas.
The new "carbon footprint management system" detailed by the
Ministry of Ecology and Environment will go into effect in 2027,
setting standards for measuring carbon emissions for about 100
key products throughout the Chinese economy, according to a
policy document.
At first, the Chinese calculation standards will apply to
high-emitting products such as coal and natural gas as well as
export products like steel, aluminium, lithium batteries and
electric vehicles.
The ministry said it hoped to expand the guidance to 200
products by 2030.
It said the new standards would help drive low-carbon
consumption, with local governments urged to develop pilot
programmes and policies to encourage the use of lower-emissions
products.
Analysts said the calculations could also play a key part of
China's efforts to reduce emissions associated with product
manufacturing - and avoid trade tensions and high import tariffs
under the European Union's new carbon border tax.
The move shows China is working to catch up with EU
legislation that already "has set clear rules on the measuring
and disclosure of product carbon footprints," said director Ma
Jun at the Institute of Public and Environmental Affairs in
Beijing.
"China is a late-comer on that, so there are still some gaps
to fill," Ma said.
The calculations could also help China create incentives for
companies and individuals to reduce emissions, Ma said.
TRADE PRESSURE
With Europe's carbon border adjustment mechanism (CBAM) set
to impose tariffs in 2026, countries outside the region have
grown anxious about the possible hit to their manufacturing.
Some like South Africa have considered filing complaints
with the World Trade Organization. Critics say the EU rules
unfairly penalise exporters, and don't consider an exporting
country's overall emissions-reductions efforts.
But moves such as China's to prepare companies to calculate
their emissions could also be a precursor to launching their own
low-carbon rules - effectively keeping those taxes on high
emissions within the country, analysts said.
In India, where officials have criticised the CBAM as a
trade barrier, there has been discussion among policymakers
about whether existing taxes on the steel industry should be
redesignated as carbon taxes, said Ritabrata Ghosh, vice
president of ICRA Ltd, an Indian investment information and
credit rating agency.
"Whether this sees the light of day remains to be seen,"
Ghosh said.
It is unclear if China is considering its own carbon tax
regime, but it has said it wants to expand the trading of carbon
credits to sectors such as steel and cement.
Wednesday's plan said China would pay close attention to
carbon-related trade policies around the world and push for the
international alignment of carbon footprint standards.
"It is about measuring (emissions) in a scientific way and a
fair way," said Ma, whose organisation has compiled a carbon
footprint database of more than 2,000 products in China.