Current Status of Carbon Footprint and EU's New Battery Law

The concept of carbon footprint, representing the total greenhouse gas emissions associated with an individual, organization, or product, has become a pivotal metric in the global fight against climate change. Countries worldwide are implementing stringent carbon footprint regulations to mitigate environmental impacts, with the European Union (EU) leading the charge through its new battery law. This article delves into the intricacies of carbon footprint calculations, international regulatory landscapes and EU's new battery law.

What is carbon footprint?

Carbon footprint refers to the total amount of greenhouse gas emissions directly or indirectly generated by an individual, organization, event or product during its life cycle, usually expressed in carbon dioxide equivalent (CO2e). This concept covers greenhouse gas emissions from all aspects, from raw material acquisition, production, transportation, use to waste disposal.

The calculation of carbon footprint usually includes the following aspects:

Greenhouse gas emissions directly generated by the activities of individuals or organizations, such as automobile exhaust emissions and emissions during factory production.

Emissions generated during the production process of energy or products purchased by individuals or organizations, such as household electricity and the use of fossil fuels.

Emissions generated during the production, processing, transportation and consumption of food.

Emissions generated during the collection, transportation and treatment of waste, such as emissions generated by flying, using electronic devices and other activities.

Application and requirements of carbon footprint in major countries and regions in the world:

As an indicator of greenhouse gas emissions of products, activities or organizations throughout their life cycle, carbon footprint has received increasing attention worldwide. Different regions and countries have different focuses on carbon footprint requirements, but overall they are promoting the reduction of carbon footprint to address climate change. The following is an overview of the requirements for carbon footprint in some major regions:

The European Union has proposed the "European Green Deal", which aims to achieve carbon neutrality through a series of measures, including improving energy efficiency, developing renewable energy, and promoting green finance. The EU's new battery law stipulates carbon footprint requirements for battery products, requiring battery products to have a lower carbon footprint and be labeled.

China is actively building its own carbon footprint management system. The National Development and Reform Commission and other departments jointly issued the "Opinions on Accelerating the Establishment of a Product Carbon Footprint Management System", proposing key tasks such as formulating product carbon footprint accounting rules and standards, establishing a carbon footprint background database, and establishing a product carbon labeling certification system. China plans to introduce about 50 key product carbon footprint accounting rules and standards by 2025, and about 200 key product carbon footprint accounting rules and standards by 2030.

The United States has also taken a series of measures in carbon footprint management, including implementing a carbon pricing mechanism in some states, and promoting emission reductions through legislation and executive orders.

International organizations such as the International Organization for Standardization (ISO) have issued standards for product carbon footprint evaluation, such as ISO 14064 and ISO 14067, which provide guidance for carbon footprint assessment worldwide.

Globally, more and more multinational companies are incorporating product carbon footprint into their sustainable supply chain management requirements, and consumer demand for low-carbon products is also growing.

EU New Battery Law

The EU's carbon footprint requirements for battery companies are mainly reflected in its newly issued "EU Batteries and Waste Batteries Regulation" (referred to as the "New Battery Law"), which has a significant impact on Chinese battery companies. The following are the specific requirements of the EU on the carbon footprint of Chinese battery companies:

The EU requires rechargeable industrial batteries, light vehicle batteries (LMT batteries) and electric vehicle (EV) batteries with a capacity of more than 2kWh to provide carbon footprint declarations and labels. This means that battery companies need to collect and calculate carbon emission data for products at every stage of their life cycle, including raw material acquisition, production, transportation, scrapping and recycling, according to relevant standards.

From July 2024, the carbon footprint declaration of power batteries and industrial batteries will be mandatory. In addition, the EU has set goals and deadlines for different stages to ensure that the battery industry gradually develops in a more sustainable and environmentally friendly direction.

From 2027, power batteries exported to Europe must hold a "battery passport" that meets the requirements, recording the manufacturer, material composition, carbon footprint, supply chain and other information of the battery. The battery passport is equivalent to the "identity card" of the battery. By scanning the QR code on the surface of the battery, you can obtain multiple contents including battery information, material composition, carbon trace information, supply chain data, etc.

The EU's "New Battery Law" requires battery companies to add raw material information to the declaration document, covering the proportion of renewable materials, and adding data quality requirements in the ANNEX II Carbon footprint section.

The PEF standard formulated by the EU is the only standard recognized by the "New Battery Regulation" for carbon footprint certification. In order to meet the requirements of the EU Battery Law, battery companies need to make corresponding adjustments in accordance with the PEF guidelines.

Faced with the new EU regulations, Chinese battery companies need to overcome challenges including carbon footprint declaration, recycling and reuse requirements of battery materials, and information disclosure in the battery passport. 

The Chinese battery industry is seeking to align with international standards and mutual recognition of data to meet export requirements and promote battery trade with the EU.

These EU requirements are both challenges and opportunities for Chinese battery companies, prompting companies to upgrade technology and environmental protection, improve the international competitiveness of products, and promote the green transformation of the entire industry.

Conclusion

As the world grapples with climate change, the focus on carbon footprint management intensifies, particularly within the battery industry. The EU's new battery law exemplifies the stringent regulations being adopted globally, compelling battery manufacturers to enhance their carbon footprint transparency and sustainability practices.