1. Low-carbon development of enterprises is an inevitable trend driven by domestic and international policies

1. Domestic policy orientation: Adjustment and upgrading of industrial structure, promotion of low-carbonization of products throughout the entire life cycle including upstream and downstream of the supply chain; low-carbonization transformation of energy, continuous improvement of energy technology innovation and development of renewable energy.

2. International trade challenges: The EU carbon border mediation mechanism was formally passed, requiring imported products to declare carbon emissions, raising market access thresholds, and requiring product carbon footprint declarations.

3. Factors such as ESG ratings in the capital market drive companies to accelerate their low-carbon transformation.

CBAM (EU Carbon Border Adjustment Mechanism, or "carbon tariff") requires that goods produced outside the EU pay a carbon price when entering the EU market based on the carbon emissions in their production process to solve the problem of carbon leakage. Gaoda Technology's "Carbon Footprint" platform helps you easily cope with the EU Carbon Border Adjustment Mechanism Act CBAM.

2. Impact of the EU Carbon Border Adjustment Mechanism Act (CBAM) and other laws on future exports

In May 2023, the Carbon Border Adjustment Mechanism (CBAM) was officially released, covering steel, cement, aluminum, fertilizers, electricity and hydrogen. The new EU policy has brought dual impacts on domestic companies. First, it increases the export cost pressure of companies; second, it prompts companies to accelerate the pace of carbon emission reduction and industrial structure adjustment.

Transition period (October 2023-end of 2025)

Basic requirements: Taxable products exported to the EU must provide carbon emission reports, no taxation requirements

Reporting frequency: Quarterly and annual carbon reports are required. Note: Deadline for submission of the first report: January 31, 2024 (submit the fourth quarter report in 2023)

Taxation period (2026): Actual carbon tariffs, mandatory certification requirements

For example, the EU has passed the first new battery law targeting the entire life cycle of batteries, establishing full life cycle carbon emissions control for all batteries entering the EU market, aiming to ensure more sustainable use of batteries throughout the EU value chain. Overseas companies will face stricter environmental and review requirements, which requires China's power battery industry chain to face the challenges of going overseas and make early arrangements; otherwise, the cost of going overseas for battery companies will be higher;

Two major market access requirements of the EU's new battery law

(III) Gaoda Technology's "Carbon Footprint" System Promotes Scientific Closed-Loop Carbon Management

The "Carbon Footprint" system provided by Gaoda Technology can help you automatically generate carbon emission reports for the EU market. It has four unique functions: (1) Calculate the true and credible carbon footprint; (2) Set scientific carbon neutrality goals; (3) Continuously optimize and improve; (4) Achieve carbon reduction and carbon offset measures. Form a closed loop of these four steps.

With the "dual-wheel drive" of digitalization and low carbonization, Gaoda Technology empowers the zero-carbon industrial chain with technological innovation, and works with world-renowned partners to build a carbon reduction ecosystem. Through customers, suppliers, infrastructure partners, certification agencies, etc., it establishes a green and low-carbon ecological network to form a reliable actuarial and traceability of "carbon footprint": (1) Carbon footprint management and service; (2) Accurate quantification of carbon footprint based on digital technology; (3) Reliable delivery and sharing of product carbon footprint throughout the entire supply chain.

Gaoda Technology uses blockchain technology to build a trusted network that links, exchanges, and verifies carbon footprint information. Under the premise of protecting confidential information of the supply chain, it realizes trusted and reliable sharing of carbon footprint information: (1) Point-to-point data interaction throughout the supply chain; (2) The requester (such as the customer) initiates a request for carbon emission data, and the responder (such as the supplier) responds; (3) Carbon footprint data can be verified by an accredited certification body; (4) The supplier's carbon footprint data is verified based on verifiable credentials; (5) The carbon data is guaranteed to be authentic, reliable, and verifiable, protecting the confidentiality of supply chain information.

(IV) Gaoda Technology introduces a “carbon footprint” system for enterprises

How to meet the green and low-carbon demands of downstream customers? How to improve the adaptability of products to the international market? How to efficiently and scientifically calculate the carbon footprint of products? How to implement effective carbon reduction strategies?

(A) Carbon footprint entry service (quick calculation of product carbon footprint):

■ Basic needs for self-assessment of product carbon footprint for small and medium-sized enterprises;

■ Quickly understand your product carbon emission information and make product carbon footprint calculation easy; use the immediate experience segment: 180 days of free service experience (during the 180-day trial experience, successfully invite 3 corporate users to register for a trial, and you can get 1 year of free use rights for the entry-level version of carbon service); 1 year of usage rights extension.

(B) Carbon Footprint Selection Service (Professional Calculation of Product Carbon Footprint):

■ Requirements for product carbon footprint verification and certification for small and medium-sized enterprises

■ Enjoy flexible and practical options to scientifically calculate your product carbon footprint data, making the product carbon footprint data clear at a glance.

(C) Carbon Footprint Flagship Service (Product Carbon Footprint Actuarial Calculation and Traceability)

■ Full-chain management and customization of carbon footprint of products for large enterprises/industrial clusters;

■ A one-stop product carbon footprint digitalization solution, covering carbon footprint digital twin, supply chain carbon emission management, etc., so that the product carbon footprint can be traced.

Carbon footprint calculation process

Digitalization accelerates the transparency and carbon certification of carbon emissions data throughout the product life cycle

Digital automation means to quantify and manage organizational carbon footprint

Promoting high-quality development of overseas enterprises’ business

Gaoda Technology's one-stop carbon labeling and carbon footprint CBAM service platform provides enterprises with low-carbon services for going overseas (export green express), which complies with the ISO14067 international standard and the accounting system generally accepted by the European Union. It provides carbon data collection, carbon data analysis (EU CBAM (simple products-direct emissions data; composite products-direct, indirect emissions and product-embodied emissions data) or corporate needs), carbon inventory services, and platform online certification support functions to efficiently meet overseas carbon footprint disclosure requirements.