The implementation of the EU carbon label system: imported foods need to be marked with full life cycle carbon emissions

The implementation of the EU carbon label system: imported foods need to be marked with full life cycle carbon emissions

Recently, the EU officially announced the implementation of the carbon label system, requiring all imported foods to be marked with full life cycle carbon emission data. This policy aims to promote low-carbonization of global supply chains and help the EU achieve its carbon neutrality goal by 2050. The policy is expected to have a profound impact on global food trade, especially exporting countries with carbon-intensive products.

Policy background and main content

The EU carbon label system is an important part of the European Green New Deal, requiring that from January 1, 2024, all foods entering the EU market must clearly mark the full life cycle carbon emissions from raw material production, processing, transportation to sales. Products that fail to meet standards will be subject to additional tariffs or import restrictions.

Analysis of the impact of global food trade

According to data from the World Trade Organization (WTO), the EU is the world's largest food import market, with an average annual import volume of more than 200 billion euros. The new policy will directly affect the trade pattern of major exporting countries, especially countries such as Brazil, Argentina, and Australia that mainly focus on high-carbon emission agriculture.

Industry response and response measures

International food giants have begun to adjust their supply chains. Nestlé announced that it will invest 300 million euros to establish a global carbon emission monitoring system, and Danone plans to achieve carbon label coverage for all EU imported products by 2025. Developing countries have called on the EU to provide technical assistance to narrow the gap in carbon emission calculation capabilities.

As the third largest source of food imports in the EU, the Ministry of Commerce said it will accelerate the establishment of a carbon accounting system that is in line with the international level. Data shows that among China's exports to Europe, low-carbon products such as frozen vegetables and tea account for 60%, and are expected to benefit from the new regulations.

Consumer impact and market expectations

European Consumer Survey shows that 68% of respondents are willing to pay a 5-10% premium for low-carbon foods. It is estimated that by 2025, the EU's low-carbon food market size will exceed 80 billion euros. Experts recommend that export companies carry out carbon footprint certification as soon as possible to seize the market opportunity.

It is worth noting that this policy may trigger a new round of disputes over green trade barriers. India, South Africa and other countries have questioned the fairness of the policy at the WTO meeting, believing that it has raised the export threshold for developing countries in disguise. The European Commission said it would establish a transitional aid fund of 500 million euros.

With the deepening of global climate governance, the carbon label system may become the new normal of international trade. Food companies need to fundamentally change their production models in order to remain competitive in the future market.