Provincial export cost implications of the EU Carbon Border Adjustment Mechanism on China’s metal industry

China's exports of iron and steel, aluminum, and their products (ISAP) are significantly affected by the European Union (EU) Carbon Border Adjustment Mechanism (CBAM). This study introduces a modeling framework coupling a global multi-regional input-output table and the integrated assessment model GCAM-China, both of which embed Chinese provinces, to dynamically assess provincial cost implications of CBAM for China's ISAP exports, considering China's upcoming 2035 Nationally Determined Contributions. By 2034, direct emissions from China's ISAP exports to the EU reach 5.4 MtCO<sub>2</sub>, with CBAM costs of €1,157 million. Including indirect power use raises exports to 7.4 MtCO<sub>2</sub> and €1,572 million. Accounting for supply chain emissions yields 15.8 MtCO<sub>2</sub> and €3,378 million. Over 65% of these costs fall on Hebei, Jiangsu, Shanxi, Liaoning, and Zhejiang. Ambitious 2035 mitigation could substantially reduce CBAM costs, with about 45% of incremental costs for accelerating electric arc furnace penetration potentially offset by avoided CBAM costs.

Authors

Institutions

Publication Details

Journal
iScience
Published
2025-04-17
DOI
https://doi.org/10.1016/j.isci.2025.112483
Citations
4
Primary Topic
Environmental Impact and Sustainability
Type
article
Field-Weighted Citation Impact
3.20

Funders

Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Provincial export cost implications of the EU Carbon Border Adjustment Mechanism on China’s metal industry

Jun Pang, Tianming Shao, Wei Xiong, Xunzhang Pan et al.
4 citations
iScience
Environmental Impact and Sustainability
3.20
article

Provincial export cost implications of the EU Carbon Border Adjustment Mechanism on China’s metal industry

Jun Pang, Tianming Shao, Wei Xiong, Xunzhang Pan, Hailin Wang, Meng Li, Lining Wang, Xin Gao, Tianpeng Wang, Xuan Ye
article en
4 citations

Abstract

China's exports of iron and steel, aluminum, and their products (ISAP) are significantly affected by the European Union (EU) Carbon Border Adjustment Mechanism (CBAM). This study introduces a modeling framework coupling a global multi-regional input-output table and the integrated assessment model GCAM-China, both of which embed Chinese provinces, to dynamically assess provincial cost implications of CBAM for China's ISAP exports, considering China's upcoming 2035 Nationally Determined Contributions. By 2034, direct emissions from China's ISAP exports to the EU reach 5.4 MtCO<sub>2</sub>, with CBAM costs of €1,157 million. Including indirect power use raises exports to 7.4 MtCO<sub>2</sub> and €1,572 million. Accounting for supply chain emissions yields 15.8 MtCO<sub>2</sub> and €3,378 million. Over 65% of these costs fall on Hebei, Jiangsu, Shanxi, Liaoning, and Zhejiang. Ambitious 2035 mitigation could substantially reduce CBAM costs, with about 45% of incremental costs for accelerating electric arc furnace penetration potentially offset by avoided CBAM costs.

iScienceVol. 28(5)
Shanghai Jiao Tong University (CN), Peking University (CN), China University of Petroleum, Beijing (CN), Renmin University of China (CN), China National Petroleum Corporation (China) (CN), Tsinghua University (CN)
National Natural Science Foundation of China, Ministry of Science and Technology of the People's Republic of China, China Petrochemical Corporation, National Key Research and Development Program of China
Openalex Percentile: Top 9%
Environmental Impact and Sustainability
3.20
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.