CBAM and China Carbon Market: Policy Synergy, Trade Impacts and Research Outlook Review

Main Article Content

Jiahui Lin
Business School, Dalian University of Technology, Panjin City 124000, China

DOI: https://doi.org/10.70267/icfmb.2026196876

Keywords

carbon border adjustment mechanism (CBAM), China carbon market, policy coordination, international trade

Abstract

One of the most important tools for changing international trade and climate regulations is the EU Carbon Border Adjustment Mechanism (CBAM). The institutional ramifications of CBAM, its global positioning, and its overall influence on China’s carbon market are all thoroughly reviewed in this paper. According to the study, CBAM drives domestic industries toward green and low-carbon transformation while simultaneously raising export costs and tightening carbon management regulations, which have a structural impact on China’s high-carbon goods like steel, aluminum, and chemicals’ ability to compete internationally. In contrast to the carbon market in the EU, China’s carbon market is still in its infancy and has structural flaws. With carbon pricing coordination, industry standard alignment, and green financial support serving as important avenues for addressing external pressures, CBAM also offers external stimulus for institutional improvement in China’s carbon market. Research on topics like corporate microbehaviors, the effects of regional differences, the use of transition finance tools, and tactics for international rule competition is still lacking. In order to foster institutional innovation in carbon markets and cooperation with international regulations, future initiatives should concentrate on interdisciplinary research.

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Published
Jul 29, 2026
Conference Proceedings Volume
Vol. 19 (2026): Proceedings of 2026 International Conference on Financial Technology, Mathematical Statistics, and Business Analytics (ICFMB 2026) - Part 1
Section
Articles
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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Lin, Jiahui. “CBAM and China Carbon Market: Policy Synergy, Trade Impacts and Research Outlook Review”. Exploring Science Academic Conference Series, vol. 19, July 2026, pp. 68-76, https://doi.org/10.70267/icfmb.2026196876.