Changes in trade in the name of "Carbon"

While the new crown epidemic is raging, global trade has undergone major changes around "Carbon Neutrality": In November 2019, the European Union announced that it will achieve carbon neutrality by 2050, and China, Japan, South Korea, and the United States have followed suit.

Do you think "Carbon Neutrality" is just a call for environmental justice? In the field of international trade, it is an out-and-out trade barrier just like tariffs, quotas, and anti-dumping duties!

The EU will fire the first shot in 2021, announcing that the "Carbon Border Adjustment Mechanism" (CBAM) will be implemented on a trial basis in 2023 and formally implemented in 2026. There are 212 items in Taiwan worth a total of NT$24.5 billion. Carbon tariffs will be added to carbon tariffs when entering Europe. It is conceivable that countries will soon follow suit.

In other words, "Carbon" will become an unavoidable new cost of international trade! Countries have already played their cards, and companies must follow the cards as soon as possible if they want to survive.