China — Afforestation Hit European Border Carbon Tax


You already know that the European Commission is going to introduce a border carbon tax from 2026. It will be imposed on imported products that have a significant «carbon footprint». That is, products that will have a share of fossil-fuel energy resources spent on their production. The larger this share, the higher the tax will be.

It is clear that today this tax is directed mainly against Chinese products that are supplied to the territory of the European Union. Hence, of course, the desire of Chinese corporations to create their production facilities on the territory of the EU itself is understandable, where its «# carbon footprint» will tend to zero, thanks to the widespread introduction of renewable energy. For example, you can just look at the map of plants under construction in Europe and planned for construction for the production of lithium batteries. Few people want to lose the European market and profits due to the introduction of #eu carbon tax.

If we look at the Chinese decarbonization strategy, which lags behind the European one by 10 years, we will see that at a certain time interval, Chinese goods may become subject to EU carbon tax. This, for example, is quite clearly stated in the analytical note of the Ministry of Economic Development of the Russian Federation «

So, the note # of the Ministry of Economic Development of the Russian Federation, in principle, confirms my conclusions, which I have repeatedly conveyed to you, but which were perceived by some with undisguised mockery. Well, it’s on their conscience, if they even have one. But now I’m not talking about lofty matters, but about money. Yes, # China today, using largely Russian # energy resources (electricity, gas, oil products, coal), is transforming its economy. Thanks to these resources, it creates the latest production facilities on its territory, which subsequently will no longer need a hydrocarbon energy component. But this process is not instantaneous. It will take years of gradual but inevitable transformation. And then China’s need for our hydrocarbon resources will be reduced to the level of statistical error in their energy balance.

But what should China do today? How can we reduce the possible losses from the introduction of a carbon tax? And China has an answer to this question.

Reducing the carbon footprint of Chinese products could provide … drum roll … Forest!

Yes, exactly #forest!

The Agricultural Development Bank of China (ADBC) issued the country’s first carbon neutral (green) bonds on Thursday. Two-year bonds worth about

That is, in parallel with the implementation of the strategy for decarbonization of transport and energy, China will be engaged in reforestation in an accelerated mode. Well, this is a completely understandable integrated approach to solving the problem. It is clear that the forest will not grow in one year. But if this process is started today (and in fact, this program has been underway in China for several years already), then in 10-15 years a certain result will be achieved, which will ultimately reduce the «carbon footprint» in Chinese export products, which means and likely to reduce the carbon tax rate on Chinese products. This, in turn, will give tangible economic benefits for specific companies, and for the Chinese state as a whole.

In the previous days, we talked more than once about new trends in the Russian corridors of power. There is an understanding of the economic feasibility of decarbonization. This is a global trend, and Russia cannot get away from this.

But there is one of the most important issues, which is being resolved very disgustingly today. This is the protection of the Russian forest. From high stands, even top officials say that our forest will help us in «binding CO2» and so on.

But you just look at the maps of forest fires for 2 years, look at the areas of bald taiga that remain after black lumberjacks.

It turns out that in China

Dear readers, do not forget to click the button

You can also subscribe to

Your participation is very important to us!