Customer Compensation Low Carbon

"Customer Compensation Low Carbon" is not a standard international trade term (such as Incoterms), but rather a special compensation arrangement in foreign trade practice concerning after-sales repair, commonly found in export contracts for electromechanical products, new energy equipment, etc. Its core meaning is: when a product fails within the warranty period and the seller needs to pay compensation to the customer, both parties agree to fulfill the compensation obligation in a "low-carbon" manner, such as through carbon credit offsets, supporting the customer in purchasing low-carbon equipment, or compensating for carbon emission costs incurred by repairs. Usage scenarios mostly appear in transactions with customers in the EU, North America, and other regions that value carbon footprint, especially involving green supply chain requirements. Precautions: First, the clause must clearly specify in the contract the calculation method of compensation amount (e.g., converted at carbon price) and the certification standards for low-carbon projects; Second, it must be distinguished from ordinary monetary compensation to avoid disputes caused by ambiguous definitions; Third, it should be considered in conjunction with policies such as "carbon tariffs" and "CBAM." The difference from "repair compensation" is that the latter only refers to economic compensation, while the former adds low-carbon fulfillment conditions, better meeting ESG compliance needs.