Abstract:

The eight climate-related bills proposed by the European Commission in June 2022, including the establishment of the EU Carbon Border Adjustment Mechanism (CBAM) and the “Social Climate Fund”, are important guarantees for the implementation of the European Climate Change Law, the realization of its emissions reduction of more than 55% by 2030 and the achievement of climate neutrality by 2050. From the three dimensions of “active government + effective market + favorable international trade”, the eight climate-related bills decompose emission reduction targets through government means, allocate emission reduction resources through market means, and introduce new trade rules to avoid carbon leakage, which will open the largest regulatory change in the EU carbon market since its establishment, and utilizing “carbon price coercion” against EU trading partners like China by the CBAM. The paper makes an overall analysis and evaluation of eight climate-related bills, and puts forward specific policy recommendations for China such as strengthening the carbon control responsibility of government departments, playing to the role of the fundamental system of the carbon market, and improving the ability to deal with carbon trade barriers.

Key words: Europe, Climate change, Act, Experience