Navigating CBAM in China: Exploring Policy Pathways for Guangdong Province

This report analyzes the potential impact of the European Union's Carbon Border Adjustment Mechanism (CBAM) on export-oriented producers in Guangdong province, China, and proposes policy pathways for both regional and EU policymakers to mitigate trade risks and accelerate decarbonization.

• Guangdong province, a major hub for exporting carbon-intensive products like aluminium, iron, and steel, currently faces limited exposure to CBAM, but pressure on its exporters is expected to increase as the mechanism expands and other nations implement similar policies.
• To maintain competitiveness, Guangdong should accelerate industrial decarbonization—specifically through green hydrogen and electrification for iron and steel, and renewable energy for aluminium—and establish a carbon pricing system compatible with the EU Emissions Trading System (ETS) to reduce CBAM costs.
• The report suggests EU policymakers mitigate CBAM's impact by improving dialogue on verification and accounting standards, allocating CBAM revenues to support low-carbon transitions in developing economies, and using international platforms like the Climate Club to align rules on embedded emissions.

APA

NewClimate Institute (2025). Navigating CBAM in China: Exploring Policy Pathways for Guangdong Province. http://www.newclimate.org/resources/publications/navigating-cbam-in-china-exploring-policy-pathways-for-guangdong-province

Chicago

NewClimate Institute. Navigating CBAM in China: Exploring Policy Pathways for Guangdong Province. 2025. http://www.newclimate.org/resources/publications/navigating-cbam-in-china-exploring-policy-pathways-for-guangdong-province.

Wikipedia

{{cite report |author=NewClimate Institute |title=Navigating CBAM in China: Exploring Policy Pathways for Guangdong Province |date=22 April 2025 |url=http://www.newclimate.org/resources/publications/navigating-cbam-in-china-exploring-policy-pathways-for-guangdong-province |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2025navigating, author = {{NewClimate Institute}}, title = {{Navigating CBAM in China: Exploring Policy Pathways for Guangdong Province}}, institution = {NewClimate Institute}, year = {2025}, month = apr, url = {http://www.newclimate.org/resources/publications/navigating-cbam-in-china-exploring-policy-pathways-for-guangdong-province}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }