Navigating the Carbon Footprint Requirements: A Guide for Chinese Battery Manufacturers

As the world intensifies its focus on sustainable development and reducing greenhouse gas emissions, the United States and European Union have implemented stringent carbon footprint management requirements that significantly impact international trade, particularly for Chinese battery companies. These regulations, rooted in domestic legislation and international trade policies, aim to promote clean energy and ensure that imported products meet high environmental standards. Chinese battery manufacturers, despite their technological and industrial advantages, must adapt to these evolving requirements to maintain market access and competitiveness. This article explores the key carbon footprint management requirements and the implications for Chinese battery companies, highlighting both the challenges and opportunities in this critical sector.

Global carbon footprint management requirements for battery manufacturers

The US carbon footprint management requirements for Chinese battery companies are mainly reflected in its domestic legislation and international trade policies, especially in the context of promoting clean energy and reducing greenhouse gas emissions. The following are some of the US requirements for carbon footprint management of Chinese battery companies:

The Clean Competition Act proposed by the United States establishes US carbon tariffs, which means that Chinese battery companies may need to meet higher environmental standards when exporting to the United States, including carbon footprint accounting and reporting.

The United States has strict requirements for carbon footprint accounting of battery products. Companies need to collect and calculate carbon emission data for products at every stage of their life cycle, including raw material acquisition, product production, transportation, use and recycling.

The US market increasingly attaches importance to third-party verified product environmental declarations, which are detailed life cycle assessment reports that show consumers and buyers the environmental performance of products.

Large American companies are gradually incorporating suppliers' carbon reduction performance into their purchasing decision-making system, which means that if Chinese battery companies want to become their suppliers, they need to strengthen their carbon footprint management.

With the global attention to carbon footprint, the United States has also participated in promoting the formulation and mutual recognition of international standards. Chinese battery companies need to pay attention to these international standards when exporting so that their products can meet the access requirements of different markets.

Although the Carbon Border Adjustment Mechanism (CBAM) is a concept proposed by the European Union, the United States, as an important trading partner, may also adopt a similar carbon pricing mechanism, which will affect the export costs and market competitiveness of Chinese battery companies.

The current situation and prospects of carbon footprint management in Chinese battery companies:

Chinese battery companies have first-mover advantages in core technology, industrial scale, cost and price. China's battery production capacity accounts for a large proportion of global battery production capacity, especially in the field of electric vehicle batteries.

Despite their advantages in technology and industrial scale, Chinese battery companies still face challenges in carbon footprint management. This includes unclear policies, insufficient corporate motivation, inconsistent accounting standards and databases, and the lack of an international mutual recognition mechanism.

Chinese battery companies need to adapt to the international market, especially the EU's "New Battery Law". The regulation requires battery products to calculate and declare the carbon footprint of the entire life cycle, and products that do not meet the requirements will be banned from entering the EU market.

Chinese battery companies have relatively weak accumulation in the accounting of carbon footprint throughout the life cycle, and face difficulties such as immature digital tools and inconsistent accounting standards.

The EU requires battery products to hold a "battery passport" to record detailed information including carbon footprint. Chinese battery companies need to improve their willingness and ability to share data to meet this requirement.

Chinese battery companies need to accelerate the improvement of carbon competitiveness to deeply participate in the global electrification transformation, which includes strengthening the accounting and management capabilities of carbon footprint. At the same time, Chinese battery companies will seek to align with international standards and mutual recognition of data. China is accelerating the formulation of relevant battery carbon footprint accounting rules and standards, with the aim of issuing carbon footprint accounting rules and standards for about 50 and 200 key products in 2025 and 2030 respectively. In addition, the Chinese version of the battery passport project has been launched to respond to export requirements and promote battery trade with the EU, which shows that Chinese battery companies are actively adapting to international rules.

Chinese battery companies will promote the establishment of a full life cycle traceability management platform for lithium batteries, conduct research on battery carbon footprint accounting standards and methods, and explore the establishment of a carbon emission management system for battery products.

Chinese battery companies will pay more attention to the regulatory requirements of the international market and strengthen compliance management to ensure that their products can meet the access standards of different markets.

In summary, although Chinese battery companies face some challenges in carbon footprint management, they are accelerating the improvement of their carbon footprint management capabilities through technological innovation, policy support and international cooperation to adapt to the requirements of the global market and seize the opportunities of low-carbon development.

At present, Xi'an High Voltage Electric Appliance Research Institute Co., Ltd., as a comprehensive service organization with deep accumulation in the field of electrical equipment testing, has carried out technical research and business development in the field of carbon footprint evaluation. According to the information collected, Xi'an High Voltage Electric Appliance Research Institute Co., Ltd. has the technical ability to carry out carbon footprint certification business for power transmission and transformation equipment, and has formed relevant technical service capabilities. In addition, Xi'an High Voltage Electric Appliance Research Institute Co., Ltd. has cooperated with other institutions to issue the first batch of "product carbon footprint" certifications for environmentally friendly gas-filled switchgear, which shows that Xi'an High Voltage Electric Appliance Research Institute Co., Ltd. not only has the ability in carbon footprint certification, but also has begun to actually operate related businesses.

These actions of the Western High Court are consistent with the measures of the National Development and Reform Commission and other departments to accelerate the establishment of a product carbon footprint management system, respond to the market's demand for the establishment of a product carbon footprint management system, and fill the gaps in the relevant field. Through carbon footprint certification, the Western High Court can help companies evaluate and manage greenhouse gas emissions of products throughout their life cycle, thereby promoting the green and low-carbon transformation of companies and meeting market demand and environmental protection requirements in international trade.

Companies and units that carry out carbon footprint certification and testing business in China mainly include:

China Quality Certification Center (CQC): Provide verification of the total amount of greenhouse gases released by products or services throughout their life cycle, and issue product carbon footprint certificates, carbon labels and related reports.

China National Testing Holding Group Co., Ltd. (CTC): Provide carbon footprint verification and certification services.

Conclusion

For Chinese battery companies, these regulations present both challenges and opportunities, necessitating technological upgrades and adherence to international standards. Through proactive adaptation and compliance, these companies can not only meet regulatory demands but also enhance their global competitiveness and contribute to a greener future. The ongoing efforts in carbon footprint certification and management underscore the pivotal role of regulatory frameworks in driving environmental stewardship and sustainable industry practices.