China's steel industry is carbon neutral to meet the external market challenge of EU CBAM

China's steel industry has been at the forefront of national rejuvenation. Through the arduous efforts of a whole generation, it has already reached the top in the world and supported the rapid development of China's economy and society. In the face of unprecedented changes in a century, the steel industry faces development difficulties such as domestic overcapacity, low small and scattered disorderly competition, market-oriented and legal-oriented joint restructuring, improving industrial concentration, promoting green, low-carbon and high-quality transformation and development, and firmly believe, and strive to go out.

With the EU's CBAM carbon border adjustment mechanism coming into effect, China's steel industry is facing external market challenges. CBAM will start data reporting in October 2023, be implemented in 2026, and be fully operational in 2034. The EU ETS reform plan, adopted at the same time as CBAM, will gradually reduce the free allowances, and the greenhouse gas emissions of the covered industries should be reduced by 62% by 2030 compared with 2005. The first industries to be included in CBAM include power, steel, cement, fertilizers, aluminium and hydrogen. In the transition period, it only needs to fulfill the reporting obligation and submit the carbon emission data of imported products every year, and does not need to purchase EU ETS to fulfill the clearing obligation. The measurement and accounting of carbon emissions in cement, electricity and fertilizer industries included direct emissions and indirect emissions. Carbon emissions from steel, aluminum and hydrogen are currently limited to direct emissions. General goods exported from China to Europe include new energy vehicles, photovoltaic modules, etc., which are not under the control of direct CBAM declaration at the initial stage.

In order to deal with the possible trade impact of EU CBAM on Chinese products in related industries, In recent years, Shenzhen Carbon Neutral has successfully developed "carbon neutral" brand industrial biogas - biochar, "carbon neutral steel", "carbon neutral alumina", "carbon neutral nano calcium carbonate (new chemical material)", "carbon neutral biochar fertilizer" and a variety of products based on biomass gasification and carbonization negative carbon emission technology, and has applied for a series of carbon neutral industrial products patent. It covers the main industries and product areas affected by CBAM, and actively responds to the external market challenges of EU CBAM with the substantial technological progress of Chinese industry. For example, "carbonneutral®" uses "Carbon neutral" brand of bio-gas - biochar ecosystem engineering technology, with the help of green electricity, the use of scrap steel electric furnace short process to produce the world's first international life cycle standard carbonneutral steel, carbon emission intensity is lower than the EU level, responsible to participate in the international market fair competition.