Abstract: Today, most countries are setting goals and taking actions to curb climate change. Among them, the European Union is the most active and progressive. It has declared in its green policy platform that greenhouse gas emissions will be reduced by 55% in 2030 compared with 1990 and by 80% in 2050. Determination to achieve a carbon neutral continent. In order to effectively curb the problem of border carbon leakage caused by increasingly stringent environmental regulations and maintain the international competitiveness of domestic industries, the European Union has decided to implement the "Carbon Border Adjustment Mechanism (CBAM)" in 2021, which will be gradually launched on a trial basis in 2023 and is expected to be implemented in 2021. It will be officially implemented in 2026. This article attempts to understand the possible impact on China's small and medium-sized enterprises based on the current trade situation. It is estimated that the impact of CBAM on China's trade from the transition period to the initial implementation period is still slight. However, the increase in environmental costs caused by green tariffs still poses a burden to business operations, and relevant measures must be taken. Countermeasures. In addition, it explores the impact of subsequent international reactions and the EU's possible tightening measures on future development directions, and provides possible ways and suggestions for small and medium-sized enterprises to improve their adaptability or seek guidance and assistance when facing rising business costs and policy changes. 1. CBAM implementation measures: According to the latest revised specifications of the European Council on April 25, 2023, it was determined that six major items: steel, aluminum, chemicals, cement, fertilizers, and electricity will be included in the first wave of control list, and will be included in the first wave of control list in 2023. A transition period will be implemented from October to the end of 2025, and the detailed rules and follow-up plans will be adjusted according to the implementation status. During the transition period, manufacturers only need to complete product carbon disclosure and submit reports without paying any fees.
