financetom
Business
financetom
/
Business
/
China plans new carbon measurement standards to boost climate efforts
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
China plans new carbon measurement standards to boost climate efforts
Jun 5, 2024 6:39 AM

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.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved