Background

        Since the Industrial Revolution, carbon dioxide emissions have increased dramatically due to human combustion of fossil fuels. The Kyoto Protocol, reached by the United Nations in December 1997, has adopted measures to reduce greenhouse gas emissions in order to reduce global warming.

        Later, in December 2015, the Paris Agreement was adopted at the United Nations Climate Change Conference to replace the Kyoto Protocol, hoping to jointly curb the trend of global warming. The goal is to control the global average temperature increase above the pre-industrial revolution level and below 2°C, and strive to limit the increase in global average temperature to above the pre-industrial revolution level and within 1.5°C.

        With the increasing global attention on greenhouse gas emissions and climate change, this issue has become a well-known and important issue. In order to deal with the current situation of greenhouse gases more effectively, countries have invested in and formulated carbon pricing mechanisms, led by the European Union's Carbon Border Adjustment Mechanism (CBAM) and the United States' Clean Competition Act (CCA). These measures aim to effectively reduce greenhouse gas emissions through carbon tariffs, thereby mitigating the impact of climate change on the environment and ecosystems.