The EU’s Carbon Border Adjustment Mechanism (CBAM) reshapes global trade amidst the climate crisis, presenting challenges and opportunities. China’s rapidly growing power equipment export sector to the EU is significantly affected. This research uses a Multi-regional Input-Output Model (MRIO) to analyze embodied carbon flows in this trade with key EU nations. Findings reveal China’s power equipment sector has a low direct carbon emission coefficient (0.005), indicating strong energy efficiency. China is a net exporter of embodied carbon in this trade, with exports far exceeding imports. Germany is the primary destination for China’s exported embodied carbon, followed by France and Poland. Imports of embodied carbon mainly come from Germany, the Czech Republic, and France. Recommendations include: China should promote multilateral climate consultation and oppose unilateral protectionism, adhering to international rules like “common but differentiated responsibilities” to build climate dialogue and boost green cooperation with the EU. Domestically, optimize the industry structure to reduce emission intensity and drive green upgrades. Adjust export policies to focus on high-benefit, low-energy products, enhance trade efficiency, and strengthen exporter credibility. This provides a foundation for navigating CBAM sustainably.

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Research on Embodied Carbon Emissions in China’s Electric Power Equipment Trade with the European Union and Countermeasures

  • Tianfang Huang,
  • Siyuan Yang,
  • Xiaole Li,
  • Yaran Li,
  • Xinyu Wei

摘要

The EU’s Carbon Border Adjustment Mechanism (CBAM) reshapes global trade amidst the climate crisis, presenting challenges and opportunities. China’s rapidly growing power equipment export sector to the EU is significantly affected. This research uses a Multi-regional Input-Output Model (MRIO) to analyze embodied carbon flows in this trade with key EU nations. Findings reveal China’s power equipment sector has a low direct carbon emission coefficient (0.005), indicating strong energy efficiency. China is a net exporter of embodied carbon in this trade, with exports far exceeding imports. Germany is the primary destination for China’s exported embodied carbon, followed by France and Poland. Imports of embodied carbon mainly come from Germany, the Czech Republic, and France. Recommendations include: China should promote multilateral climate consultation and oppose unilateral protectionism, adhering to international rules like “common but differentiated responsibilities” to build climate dialogue and boost green cooperation with the EU. Domestically, optimize the industry structure to reduce emission intensity and drive green upgrades. Adjust export policies to focus on high-benefit, low-energy products, enhance trade efficiency, and strengthen exporter credibility. This provides a foundation for navigating CBAM sustainably.