{"id":2937,"date":"2025-06-13T19:11:34","date_gmt":"2025-06-13T11:11:34","guid":{"rendered":"\/?post_type=insight&#038;p=2937"},"modified":"2026-08-19T12:50:37","modified_gmt":"2026-08-19T04:50:37","slug":"a-model-for-analyzing-the-interaction-between-the-european-cbam-and-the-chinese-steel-industry","status":"publish","type":"insight","link":"https:\/\/www.igdp.cn\/en\/insights\/a-model-for-analyzing-the-interaction-between-the-european-cbam-and-the-chinese-steel-industry\/","title":{"rendered":"A Model for Analyzing the Interaction between the European CBAM and the Chinese Steel Industry"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2937\" class=\"elementor elementor-2937\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b2744ba elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"b2744ba\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e8a4db8\" data-id=\"e8a4db8\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-755b554 elementor-widget elementor-widget-igdp_insight_detail_hero\" data-id=\"755b554\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"igdp_insight_detail_hero.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"row-report1\">\n\t\t<div class=\"wp\">\n\t\t\t\t<div class=\"cur cur1\">\n\t\t<a href=\"\/\">Home<\/a>\n\t\t<i>\/<\/i>\n\t\t<a href=\"\/insights\/\">Insights<\/a>\n\t\t<i>\/<\/i>\n\t\t<span>A Model for Analyzing the Interaction between the European CBAM and the Chinese Steel Industry<\/span>\n\t<\/div>\n\t\t\t\t<div class=\"m-report1 wow fadeInUp\">\n\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t<div class=\"inner\">\n\t\t\t\t\t\t<div class=\"tit\">A Model for Analyzing the Interaction between the European CBAM and the Chinese Steel Industry<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"line\"><\/div>\n\t\t\t\t\t\t<div class=\"desc\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon3.svg);\">Chinese<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon4.svg);\">JUN 2025<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon5.svg);\">Report<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon6.svg);\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span\">Green Economics<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span\">Industry<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span\">Quantitative Modeling Tools<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc2\">\n\t\t\t\t\t\t\t\t<div class=\"span2\">Summary:<\/div>\n\t\t\t\t\t\t\t\t<div class=\"span3\">This report presents the CBAM-CST model, a quantitative tool developed to analyze the long-term interaction between the EU Carbon Border Adjustment Mechanism and China&#039;s steel industry decarbonization. The model integrates three modules\u2014CBAM cost calculation, China&#039;s steel low-carbon transformation, and inflation\/exchange rates\u2014to simulate CBAM certificate costs across multiple scenarios through 2050. It identifies EU ETS carbon price and Chinese steel carbon intensity as the primary cost drivers, and examines how low-carbon technologies, electricity decarbonization, and hydrogen adoption can reduce the CBAM burden. The analysis also evaluates the potential offset from China&#039;s domestic carbon market and provides technical support for China-EU policy dialogue and enterprise strategy formulation.<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc2\">\n\t\t\t\t\t\t\t\t<div class=\"span2\">Suggested citation:<\/div>\n\t\t\t\t\t\t\t\t<div class=\"span3\">Liu Xueye, Hong Jialing, Lu Bin, Mo Kevin. (2025).\u00a0A Model for Analyzing the Interaction between the European CBAM and the Chinese Steel Industry. Beijing: Institute for Global Decarbonization Progress (iGDP). May 2025.<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc2\">\n\t\t\t\t\t\t\t\t<div class=\"span2\">License:<\/div>\n\t\t\t\t\t\t\t\t<div class=\"span3\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\" class=\"link\">Creative Commons Attribution 4.0 International License (CC BY 4.0)<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"igdp-report-download-buttons\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"\/en\/wp-content\/uploads\/2025-06-IGDP-Report-ZH-A-Model-for-Analyzing-the-Interaction-between-the-European-CBAM-and-the-Chinese-Steel-Industry.pdf\" class=\"g-btnr1\"><span style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon7.svg);\">download zh<\/span><\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t<div class=\"pic\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.52.17-PM.jpg\" alt=\"A Model for Analyzing the Interaction between the European CBAM and the Chinese Steel Industry\">\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-78971f2 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"78971f2\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-036be1f\" data-id=\"036be1f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-72d5209 elementor-widget elementor-widget-igdp_insight_detail_related\" data-id=\"72d5209\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"igdp_insight_detail_related.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"row-report4\" id=\"page09\">\n\t\t<div class=\"wp\">\n\t\t\t<div class=\"g-titr1 wow fadeInUp\">Related<\/div>\n\t\t\t<ul class=\"ul-report4 wow fadeInUp\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/decarbonizing-steel-industry-thermal-systems-technological-pathways-and-practices\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">Decarbonizing Steel Industry Thermal Systems<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">This report examines the low-carbon transition pathways for thermal\/heating systems in China&#039;s steel industry, reviewing the policy drivers behind decarbonization and analyzing the technological trajectory across near-, medium-, and long-term horizons (2025\u20132060). It surveys and compares the applicability, economics, and emissions-reduction potential of key technologies\u2014including waste heat recovery, system efficiency improvements, and hydrogen-based metallurgy\u2014through in-depth case studies (HBIS Group&#039;s hydrogen metallurgy, Shougang Jingtang&#039;s process interface optimization, and Sinosteel\/CISP&#039;s hydrogen-based smelting reduction, among others). It further identifies the practical barriers to scaling these technologies (high green hydrogen costs, renewable energy intermittency, stranded-asset risk, and weak cross-sector coordination mechanisms), and proposes policy recommendations to accelerate the sector&#039;s shift toward integration with renewable energy systems.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Report<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">AUG 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"1085\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-1.11.52-PM-768x1085.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-1.11.52-PM-768x1085.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-1.11.52-PM-212x300.jpg 212w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-1.11.52-PM-725x1024.jpg 725w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-1.11.52-PM-1087x1536.jpg 1087w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-1.11.52-PM.jpg 1128w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"https:\/\/dialogue.earth\/en\/energy\/can-chinas-zero-carbon-industrial-parks-go-global\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">Can China\u2019s zero-carbon industrial parks go global?<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">In March 2026, China\u2019s 15th Five Year Plan set a target to build \u201caround 100 national level zero-carbon industrial parks\u201d \u2013 zones for industrial production with net-zero or close to zero carbon emissions. It marked an upgrade to what had previously been a series of pilot projects around the country and catapulted such zones to a national priority.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Interview<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">JUL 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img decoding=\"async\" width=\"768\" height=\"512\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Jiangsu-wind-industrial-park-_Alamy_2XAPTHE-2400x1600-1-768x512.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Jiangsu-wind-industrial-park-_Alamy_2XAPTHE-2400x1600-1-768x512.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Jiangsu-wind-industrial-park-_Alamy_2XAPTHE-2400x1600-1-300x200.jpg 300w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Jiangsu-wind-industrial-park-_Alamy_2XAPTHE-2400x1600-1-1024x683.jpg 1024w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Jiangsu-wind-industrial-park-_Alamy_2XAPTHE-2400x1600-1-1536x1024.jpg 1536w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Jiangsu-wind-industrial-park-_Alamy_2XAPTHE-2400x1600-1-2048x1365.jpg 2048w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/consumption-constraints-in-chinas-green-hydrogen-amino-acid-industry\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">Consumption Constraints in Green Hydrogen Amino Acid Industry<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">Examines the green hydrogen, ammonia, and methanol industry in China, contends that the sector is shifting from a supply-side capacity-expansion phase to a &quot;demand-constrained&quot; phase where commercial viability depends on forming a closed-loop offtake and consumption system, identifies critical bottlenecks\u2014including high production costs (2\u20133 times higher than conventional routes), insufficient port refueling infrastructure, heavy reliance on volatile international certification (e.g., ISCC) and external demand, and the failure of green premiums to translate into stable domestic willingness-to-pay\u2014and proposes a strategic policy reorientation from merely &quot;building production capacity&quot; to actively &quot;creating demand&quot; through enforceable domestic demand-side mechanisms (e.g., non-electric consumption targets, green procurement, and carbon market integration), enhanced domestic green certification and pricing capabilities, consumption-side incentives, and stricter project screening focused on commercial closure, in order to unlock the industry&#039;s low-carbon value, reduce dependence on external rules, and support its sustainable commercial scaling and contribution to China&#039;s energy transition.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Commentary<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">JUN 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img decoding=\"async\" width=\"768\" height=\"1087\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-12.48.16-PM-768x1087.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-12.48.16-PM-768x1087.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-12.48.16-PM-212x300.jpg 212w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-12.48.16-PM-724x1024.jpg 724w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-12.48.16-PM-1086x1536.jpg 1086w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-07-at-12.48.16-PM.jpg 1128w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"https:\/\/dialogue.earth\/zh\/4\/60136155\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">The EU Pushes for Domestic Manufacturing: Where Will China\u2019s Clean Technology Products Go?<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">In its document, the European Commission explicitly stated that China accounts for more than 80 percent of global production capacity in the battery manufacturing and solar photovoltaic sectors; at the same time, the European wind power industry is facing cost pressures from low-priced imports from China. On April 27, China\u2019s Ministry of Commerce responded by stating that the bill constitutes \u201cserious institutional discrimination\u201d and will undermine fair competition.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Interview<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">JUN 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"507\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-768x507.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-768x507.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-300x198.jpg 300w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-1024x675.jpg 1024w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-1536x1013.jpg 1536w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-2048x1351.jpg 2048w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"https:\/\/dialogue.earth\/en\/energy\/behind-chinas-boom-in-zero-carbon-industrial-parks\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">Behind China\u2019s Boom in \u2018Zero-Carbon Industrial Parks\u2019<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">As the parks multiply, unified standards and better carbon accounting are needed to maximize their potential.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Op-ed<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">APR 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"512\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/josh-beech-tXJhAFVOHVk-unsplash-768x512.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/josh-beech-tXJhAFVOHVk-unsplash-768x512.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/josh-beech-tXJhAFVOHVk-unsplash-300x200.jpg 300w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/josh-beech-tXJhAFVOHVk-unsplash-1024x683.jpg 1024w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/josh-beech-tXJhAFVOHVk-unsplash-1536x1024.jpg 1536w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/josh-beech-tXJhAFVOHVk-unsplash-2048x1365.jpg 2048w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/from-fuel-to-feedstock-chinas-fossil-fuel-turning-point-and-implications-for-subnational-decarbonization-in-carbon-intensive-industries\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">From Fuel to Feedstock<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">This policy brief analyzes the structural shift in China&#039;s fossil energy consumption from fuel to feedstock, identifying provinces with high feedstock dependence and assessing the implications for subnational decarbonization under the &quot;dual control&quot; framework for carbon emissions. It combines quantitative analysis of national and provincial energy statistics from the China Energy Statistical Yearbook (2019\u20132023) with a classification framework that ranks provinces based on the share of coal, oil, and natural gas used as feedstock relative to their total final consumption of each fuel. Policy recommendations are centered on accelerating the deployment of green hydrogen, ammonia, and methanol as substitutes for fossil feedstocks in carbon-intensive industries, supported by a case study of Inner Mongolia&#039;s green hydrogen industry plan.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Policy Brief<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">APR 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"1087\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.56.29-PM-768x1087.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.56.29-PM-768x1087.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.56.29-PM-212x300.jpg 212w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.56.29-PM-723x1024.jpg 723w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.56.29-PM-1085x1536.jpg 1085w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.56.29-PM.jpg 1126w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t<\/ul>\n\t\t<\/div>\n\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>This report presents the CBAM-CST model, a quantitative tool developed to analyze the long-term interaction between the EU Carbon Border Adjustment Mechanism and China&#8217;s steel industry decarbonization. The model integrates three modules\u2014CBAM cost calculation, China&#8217;s steel low-carbon transformation, and inflation\/exchange rates\u2014to simulate CBAM certificate costs across multiple scenarios through 2050. It identifies EU ETS carbon price and Chinese steel carbon intensity as the primary cost drivers, and examines how low-carbon technologies, electricity decarbonization, and hydrogen adoption can reduce the CBAM burden. The analysis also evaluates the potential offset from China&#8217;s domestic carbon market and provides technical support for China-EU policy dialogue and enterprise strategy formulation.<\/p>\n","protected":false},"featured_media":2497,"template":"","meta":{"_acf_changed":false,"igdp_summary":"This report presents the CBAM-CST model, a quantitative tool developed to analyze the long-term interaction between the EU Carbon Border Adjustment Mechanism and China's steel industry decarbonization. The model integrates three modules\u2014CBAM cost calculation, China's steel low-carbon transformation, and inflation\/exchange rates\u2014to simulate CBAM certificate costs across multiple scenarios through 2050. It identifies EU ETS carbon price and Chinese steel carbon intensity as the primary cost drivers, and examines how low-carbon technologies, electricity decarbonization, and hydrogen adoption can reduce the CBAM burden. The analysis also evaluates the potential offset from China's domestic carbon market and provides technical support for China-EU policy dialogue and enterprise strategy formulation.","igdp_featured_media":2497,"igdp_download_file":1697,"igdp_external_url":"","igdp_key_info":"This report presents the CBAM-CST model, a quantitative tool developed to analyze the long-term interaction between the EU Carbon Border Adjustment Mechanism and China's steel industry decarbonization. The model integrates three modules\u2014CBAM cost calculation, China's steel low-carbon transformation, and inflation\/exchange rates\u2014to simulate CBAM certificate costs across multiple scenarios through 2050. It identifies EU ETS carbon price and Chinese steel carbon intensity as the primary cost drivers, and examines how low-carbon technologies (DRI-EAF, scrap-EAF), electricity decarbonization, and hydrogen adoption can reduce the CBAM burden. The analysis also evaluates the potential offset from China's domestic carbon market and provides technical support for China-EU policy dialogue and enterprise strategy formulation.","igdp_related_insights":[]},"insight_type":[48],"insight_region":[47],"igdp_topic":[149,153,159],"class_list":["post-2937","insight","type-insight","status-publish","has-post-thumbnail","hentry","insight_type-report","insight_region-international","igdp_topic-green-economics","igdp_topic-industry","igdp_topic-quantitative-modeling-tools"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight\/2937","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":18,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight\/2937\/revisions"}],"predecessor-version":[{"id":4471,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight\/2937\/revisions\/4471"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/media\/2497"}],"wp:attachment":[{"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/media?parent=2937"}],"wp:term":[{"taxonomy":"insight_type","embeddable":true,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight_type?post=2937"},{"taxonomy":"insight_region","embeddable":true,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight_region?post=2937"},{"taxonomy":"igdp_topic","embeddable":true,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/igdp_topic?post=2937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}