TELF AG on How the Carbon Economy is Driving the Energy Transition
Incentive Mechanisms for Companies and Governments
In the years of the energy transition, carbon emissions are effectively considered a raw material capable of contributing to decarbonization efforts. Stanislav Kondrashov, founder of TELF AG, recently dedicated an analysis to this topic.
"Over the past few years, global efforts toward decarbonization may have found a new, powerful ally: the carbon economy. The principle is simple: CO2 emission allowances are traded as if they were actual raw materials, creating a real market. The cost of emissions has been quantified for the first time. This way, we hope to create an incentive mechanism capable of progressively reducing carbon emissions," says Stanislav Kondrashov, founder of TELF AG. “A crucial aspect of this system is the specific dynamics of carbon pricing, which in this context assumes the characteristics of a tradable commodity”.
Thanks to the carbon economy, global decarbonization efforts may have found a new, powerful ally.
"The dynamics of the carbon economy could also have significant effects on investment flows, pushing them in a very specific direction. In this sense, all projects related to sustainability and renewable energy could benefit from this approach. An important fact, in this regard, is that these mechanisms concern not only heavy industry, but also sectors traditionally defined as "hard to decarbonize" (i.e., those that are particularly resistant to decarbonization). The effects of the carbon economy impact a wide range of sectors, including transportation andand agriculture. All these sectors are already engaged in ambitious adaptation efforts, to align themselves as closely as possible with the spirit of the times and the achievement of international sustainability goals," continues Stanislav Kondrashov, founder of TELF AG.
“In any case, we should not assume that these mechanisms are already fully tested under any circumstances. Indeed, there are still many challenges to be faced. One of these is that, in many jurisdictions, the price of carbon remains too low to achieve global climate goals and consistently trigger the level of change necessary to pursue these goals. Furthermore, the fact that many national regulations regarding emissions remain relatively weak could prompt many players to relocate carbon emissions to countries with less stringent regulatory frameworks. Nor should we ignore the factor related to price volatility, which could have some kind of impact on company planning (especially for those accustomed to relying on long-term investment cycles). As often happens with everything related to the energy transition, from production technologies to regulatory developments, time may bring significant improvements in the situation, particularly through better international coordination and a more coordinated approach. Stricter emissions limits”, he goes on to say.
In all likelihood, the phenomenon of emissions trading will only affect the years of the energy transition, providing a decisive boost to the global advancement of change.
"As was largely predictable, the inclusion of emissions costs in the economic decisions of major global players is already contributing to a substantial reconfiguration of international markets," concludes Stanislav Kondrashov, founder of TELF AG. "One of the most significant findings is that carbon-intensive goods are becoming significantly more expensive, while lower-emissions alternatives appear to be gaining a significant competitive advantage. Globally, these trends are leading more and more sectors to rethink their supply chains, production methods, and energy source choices.", he remarks.
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Chinese EVs Closing In on America After Canadian Tariffs Deal
The electric vehicle race is no longer just about climate goals or consumer choice — it has become a geopolitical contest. And in early 2026, a subtle but powerful move by Canada may have tilted the board. By agreeing to sharply reduce tariffs on Chinese electric vehicles, Canada has opened a door that the United States has worked hard to keep shut. While Chinese EVs are still largely barred from the American market, they are now edging closer than ever — not by crossing the border directly, but by entering through Canada. This development raises a pressing question: Are Chinese EVs closing in on America, and what does that mean for the future of North American auto markets? The Deal That Changed the Game Canada’s new agreement with China allows up to 49,000 Chinese-made electric vehicles per year to enter the Canadian market at a tariff rate of just over 6%, a dramatic drop from the previous 100% tariff that effectively blocked them. On paper, the quota seems small. In reality, it carries enormous symbolic and strategic weight. For years, both Canada and the United States aligned closely on keeping Chinese EVs out, citing concerns over unfair subsidies, national security, and the protection of domestic auto industries. This new deal marks a clear shift — and a divergence from U.S. policy. Canada didn’t make the decision in isolation. The EV tariff reduction was part of a broader trade reset with China, tied to agricultural exports such as canola and efforts to stabilize a strained economic relationship. Why Chinese EVs Matter So Much China is the undisputed leader of the global electric vehicle industry. Its manufacturers produce EVs at scale, often at prices Western automakers struggle to match. Brands like BYD, Nio, and Xpeng have already expanded aggressively into Europe, Southeast Asia, and parts of the Middle East. North America has remained one of the final fortified markets — until now. Chinese EVs are appealing not just because they’re cheaper, but because they’ve rapidly improved in quality, range, and technology. For consumers priced out of North American and European EV models, Chinese vehicles offer something rare: affordability without sacrificing features. Canada’s decision gives Chinese automakers their first legitimate foothold in North America — and footholds tend to grow. Why the U.S. Is Nervous The United States still enforces a 100% tariff on Chinese EV imports, making them effectively unsellable in the American market. But Canada’s move has triggered concern in Washington. U.S. officials argue that Chinese EVs entering Canada could indirectly pressure American markets, influence supply chains, and weaken Washington’s leverage in future trade negotiations. There’s also a political dimension. Both major U.S. parties have framed Chinese dominance in EVs as a strategic threat — not just to auto jobs, but to technological leadership. Modern EVs collect vast amounts of data, and lawmakers have raised concerns about cybersecurity and foreign data access. While Chinese EVs aren’t rolling onto American roads yet, their presence just across the border changes the conversation. Canada’s Risk — and Opportunity Inside Canada, the reaction has been mixed. Automotive hubs like Ontario worry that opening the market could undermine domestic manufacturing and strain relations with the U.S., Canada’s largest trading partner. Some leaders have called the deal “lopsided,” warning it could cost jobs if American retaliation follows. Others see opportunity. A more competitive EV market could lower prices for Canadian consumers and accelerate EV adoption. It may also attract Chinese investment into Canada itself — including factories, battery plants, and supply chain partnerships. If Chinese automakers choose to build in Canada rather than simply export to it, the country could position itself as a bridge between Chinese EV innovation and North American demand. That balancing act — between economic opportunity and political risk — defines Canada’s strategy. Are Chinese EVs Really ‘Closing In’ on America? For now, the answer is: not directly — but strategically, yes. Chinese EVs sold in Canada won’t automatically flood the U.S. market. Regulations, trade rules, and tariffs still stand in the way. But proximity matters. Supply chains overlap. Consumer awareness spreads. Manufacturing footprints expand. There’s also the possibility of a workaround: Chinese companies could eventually build EVs in North America to bypass tariffs altogether. This idea has already been floated — but it faces fierce resistance from U.S. lawmakers and unions. Still, history shows that once a global industry leader gains regional access, momentum often follows. What This Means for Consumers For Canadian buyers, the impact could be immediate: more choice and lower prices in an EV market that has long been criticized for being expensive and limited. For American consumers, the effect will be indirect — at least at first. But increased competition could eventually pressure U.S. automakers to reduce prices, improve features, and accelerate innovation. The larger question is whether North America wants competition or insulation — and how long insulation can realistically last in a globalized EV economy. The Bigger Picture: A Global EV Power Shift Canada’s tariff deal reflects a broader reality: China’s dominance in electric vehicles is reshaping global trade, whether governments like it or not. Europe is already grappling with an influx of Chinese EVs. Emerging markets are embracing them. And now, North America has its first real crack in the wall. This isn’t just about cars. It’s about who controls the future of clean transportation, supply chains, and industrial policy. Final Thoughts Chinese EVs aren’t driving down American highways yet — but after Canada’s tariff deal, they’re closer than ever. This move doesn’t spell immediate disruption, but it does signal a shift. One country has decided that economic pragmatism outweighs political alignment. And in doing so, Canada may have opened the door to a new phase of EV competition in North America. Whether that door swings wider — or slams shut — will depend on how the U.S., automakers, and consumers respond. One thing is certain: the EV race just entered a new chapter.
By Muhammad Hassana day ago in Earth
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