The European Commission has published a draft delegated Regulation supplementing Regulation (EU) 2023/956, the foundational legislation establishing the Carbon Border Adjustment Mechanism (CBAM). The draft sets out the operational framework governing how CBAM certificates are to be purchased and repurchased, how the financial infrastructure supporting those transactions is to function, and what fees authorised importers will be required to pay. The document represents preliminary views of the Commission services and has not yet been formally adopted or endorsed by the Commission. The Regulation is intended to apply from 1 February 2027.

On 31 July, the Ministry of Industry and Information Technology issued a 15th Five-Year Plan for green and low-carbon industrial development, outlining actions to promote industrial and energy transition, accelerate electrification upgrades and green energy adoption, and intensify energy conservation and decarbonisation in key industrial sectors.

On 9 July, the State Council issued an action plan to achieve carbon peaking during the 15th Five-Year Plan period. By 2030, it is intended that carbon dioxide emissions per unit of GDP will be reduced by 17% compared to 2025 levels, while the share of non-fossil energy consumption will be increased to 25%, with the aim of achieving China’s peak carbon target on schedule.

On 7 July 2026, the European Parliament's Committee on the Environment, Climate and Food Safety adopted its position on proposed amendments to the EU's Carbon Border Adjustment Mechanism (CBAM), voting 56 to 11 with 12 abstentions in favour of a significantly strengthened version of the existing framework. The committee's position, if confirmed by the full Parliament and agreed with EU Member States through subsequent negotiations, will materially expand both the scope and the enforcement architecture of the CBAM, with direct consequences for Hong Kong traders exporting covered goods to the European Union.

On 15 June, the National Development and Reform Commission and other government departments jointly issued a three-year action plan for comprehensive energy conservation and carbon reduction transformation in key sectors such as steel, electrolytic aluminium, cement, flat glass, oil refining and ethylene, methanol and synthetic ammonia, and coal-fired power generation.

On 12 June 2026, EU finance ministers meeting at the Economic and Financial Affairs Council reached a general approach on a draft regulation amending Regulation (EU) 2023/956 as regards the extension of CBAM's scope to downstream goods and anti-circumvention measures. The general approach represents the Council's formal negotiating mandate and opens the door to interinstitutional negotiations with the European Parliament.

On 4 June 2026, it was announced that the Cypriot presidency of the EU Council has proposed a major expansion of the EU's Carbon Border Adjustment Mechanism, known as CBAM, in a draft compromise text circulated among EU ambassadors. The proposal would more than double the number of downstream products subject to the carbon border tax, increasing coverage from the European Commission's original 180 products to 377 products. For Hong Kong exporters, particularly those in manufacturing and industrial supply chains feeding into the European market, this development could have commercial and compliance consequences.

The European Commission recently published a long-awaited simplification review of the EU Deforestation Regulation (EUDR), alongside a draft delegated act that would materially alter the list of products subject to the law's due diligence requirements. The package aims to provide clarity to operators and stakeholders ahead of the Regulation's entry into application by the end of the year. (see, also, Regulatory Alert-EU, Issue 1333/2026 for more details on this development).

Vietnam has issued a new list of 70 prioritised technologies under Decision No. 23/2026/QD-TTg, signed on 15 May 2026. The decision, effective from 1 July 2026, replaces the previous framework introduced in 2020.

The National Energy Administration and three other government agencies recently issued an action plan that aims to promote the mutual empowerment of artificial intelligence and energy. The plan seeks to ensure secure and reliable energy supply for computing power facilities and enhance diversified power supply capabilities.