NPC Representative Chan Fan: Promoting Hong Kong as a Bridge for China-Europe Connection with EU "Carbon Border Adjustment Mechanism"

[Caixin] Hong Kong can leverage its advantages to become a platform for Chinese outward-facing companies to connect with the EU’s “carbon tariffs,” helping businesses convert emission reduction achievements into internationally recognized carbon assets, achieving “reducing carbon emissions equals increasing income.”

On March 12, the Fourth Session of the 14th National People’s Congress concluded in Beijing. After the meeting, NPC deputy and Vice President of the Hong Kong Institution of Engineers, Chen Fan, shared the above view in an interview with Caixin. This is also the suggestion he made in his proposal.

The EU Carbon Border Adjustment Mechanism (CBAM, commonly known as “carbon tariffs”) officially came into effect on January 1 of this year, currently covering six major industries: steel, aluminum, cement, fertilizers, electricity, and hydrogen. According to its rules, imported products covered by CBAM will complete carbon emission calculations within the following year, and start paying fees from 2027. Products included in the scope must compensate for the carbon costs equivalent to those of domestically produced products within the EU when exported to the EU, paying the corresponding CBAM certificate fees. One CBAM certificate represents one ton of CO2 emissions. Currently, the compliance pressure and uncertainty surrounding “carbon” have spread within China’s foreign trade industry. (See Caixin Weekly: “EU ‘Carbon Tariffs’ Are Coming—What Are Chinese Companies Preparing?”)