On April 25, 2023, the European Council voted to approve the Carbon Border Adjustment Mechanism (CBAM). This marks that CBAM has completed the entire legislative process and is now ‘officially passed‘.

Prior to this, on April 18th, the European Parliament approved three important EU draft laws related to climate change: the Carbon Emissions Trading System Reform (ETS), the Carbon Border Adjustment Mechanism (CBAM, also known as the "Carbon Tariff"), and the Social Climate Fund Law (SCF) worth up to 86.7 billion euros.

The "carbon tariff" quickly became a news hotspot.

Regarding the ‘carbon tariff‘

In the import and export process of goods trade, the European Union will impose corresponding fees or quotas on imported products with high carbon emissions, thus being referred to as "carbon tariffs". Carbon tariff is the core content of the EU‘s "Green New Deal" strategy, which aims to solve the possible "carbon leakage" problem under the carbon market mechanism. The EU believes that if some companies establish their headquarters in the EU and transfer their high carbon production activities to countries with relatively loose climate policies, or if the goods circulating in the EU region are replaced by high carbon imported products, there will be a "carbon leak". These imported goods need to calculate and pay carbon tariffs according to the EU carbon market price. That is to say, no matter where the carbon emission activities of producing products occur, as long as the products enter EU countries, foreign manufacturers need to pay a price difference for carbon emissions exceeding the free quota, and the cost will correspondingly increase.

Carbon Opportunities

If ‘carbon leakage‘ is the cause, then ‘carbon tariffs‘ are the result. However, regardless of the cause or effect, it is pointed out that developed countries pay more attention to environmental protection in trade and production activities. However, some experts believe that "carbon tariffs" are actually a form of trade protectionism implemented by the European Union. However, regardless of the reason, green and low-carbon renewable enterprises will have great potential.

The implementation of low-carbon standards may hit some industries. But for Topcentral^® Speaking of it, this gives us more opportunities and hope, just let go and do it.

This is because Topcentral^® It is currently one of the most comprehensive technology-based enterprises in the global PCR category, continuously increasing investment in recycled materials, with a particular emphasis on the development of key technologies for the recycling of waste plastics. Based on this, it continuously strengthens cooperation and exchanges between enterprises and the industry, and continuously introduces new recycled materials, greatly reducing carbon emissions while improving resource recycling efficiency.

Not only that, Topcentral^® Actively engage in technical exchanges with different industries with an open, inclusive, shared, and growing mindset, fully collect frontline market data, and continuously explore ways to improve the quality and quantity of waste plastic recycling on a larger scale. While achieving economic benefits for the enterprise, it also better meets social benefits.

Just like Topcentral^® Our vision of becoming a functionalized professional platform driven by digitization, technological innovation, and talent win-win is to work together with our value chain partners and public welfare ecological chain partners to promote the realization of PCR materials and products in consumer electronics, electronic appliances, smart homes and appliances, 5G communication, new energy vehicles, rail transit, photovoltaic and energy storage, green buildings Various industries such as beauty and personal care have achieved more extensive innovation and low-carbon or even zero carbon applications.

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