China submitted a proposal on the CBAM policy at the WTO
According to CCTV News, the Trade and Environment Committee of the World Trade Organization held its third meeting in 2023 in Geneva from the 13th to the 14th. At the meeting, on the basis of the proposals made in March and June this year, China submitted a proposal on "Policy Issues to be Discussed Multilateral on the Carbon Border Adjustment Mechanism". The proposal focuses on policy issues related to the CBAM, and raises a number of specific issues that need to be discussed at the multilateral level.
The proposal points out that in the process of exploring trade policies to address climate change, the CBAM combines environmental policy tools such as carbon emissions, carbon intensity and carbon footprint with trade policies such as tariffs or border adjustments, and promotes them unilaterally, which has caused great controversy. Relevant multilateral discussions should ensure that an open, non-discriminatory and equitable multilateral trading system is coordinated with environmental protection and sustainable development in order to achieve a balance between environmental protection and economic development.
With regard to the CBAM, China proposes to hold thematic discussions on six topics, including the rationale for the measures, institutional design, trade impact, environmental contribution, inclusiveness and data protection, focusing on specific issues such as the determination of carbon emission defaults, the applicability of the CBAM, WTO compliance, nationally determined contributions, use of funds, data reporting and mutual recognition, and encourages members to raise more policy issues and contribute on how to address them.
CBAM-related issues have been the focus of discussions in the WTO Committee on Trade and Environment. At the meeting, the Chinese side made a presentation on the proposal, which was widely received. Brazil, India, Russia, Turkey and other major developing countries have all indicated that China's proposal is constructive and willing to discuss further with China.
