Bridging the Divide

The report examines the potential for international cooperation to mitigate the risks of unilateral border carbon adjustments (BCAs), such as 'green protectionism' and trade retaliation. It evaluates the G7 Climate Club, GASSA, and the OECD's IFCMA using a framework of 'input legitimacy' (inclusiveness and institutional strength) and 'output legitimacy' (effectiveness in achieving five specific goals). The analysis finds that while none are currently ideal for BCA cooperation, the IFCMA shows the most promise due to its focus on data and comparability. The report warns that domestic political priorities and existing policy path dependencies, such as the EU's established CBAM, hinder the creation of a unified international approach.

• Border carbon adjustments (BCAs) are highly controversial due to concerns over "green protectionism" and their potential negative economic and social impacts on the Global South.
• The EU's Carbon Border Adjustment Mechanism (CBAM) is currently the only significant BCA in force, requiring importers of cement, iron, steel, aluminum, fertilizer, electricity, and hydrogen to declare embedded emissions starting in October 2023.
• The United States has several proposed BCA bills, such as the FAIR Transition and Competition Act, the Clean Competition Act, and the Foreign Pollution Fee Act, which often focus on a "carbon advantage" or countering China's influence.
• The G7 Climate Club is open to all countries and focuses on industrial decarbonization and climate ambition, but it does not directly cooperate on BCAs and lacks a legally binding agreement.
• The Global Arrangement on Sustainable Steel and Aluminium (GASSA) has reached a stalemate due to differences between the US and EU, particularly regarding the US's desire for an exemption from the EU CBAM.
• The OECD's Inclusive Forum on Carbon Mitigation Approaches (IFCMA) is the most promising initiative for BCA cooperation because of its high inclusiveness and its focus on developing methodologies to compare different mitigation policies.
• International cooperation on BCAs is hindered by domestic political interests, such as the influence of the steel industry in US swing states, and existing policy path dependencies.
• The report identifies five primary goals for international cooperation on BCAs: promoting transparency, developing shared objectives and principles, improving comparability, promoting harmonization, and contributing to global climate ambition.

APA

Mehling, M., van Asselt, H., Droege, S., Das, K., & Hall, C. (2023). Bridging the Divide. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2023/12/Climate-Strategies-Report-.-Bridging-the-Divide.pdf

Chicago

Mehling, Michael, Harro van Asselt, Susanne Droege, Kasturi Das, and Catherine Hall. Bridging the Divide. Climate Strategies, 2023. https://climatestrategies.org/wp-content/uploads/2023/12/Climate-Strategies-Report-.-Bridging-the-Divide.pdf.

Wikipedia

{{cite report |last1=Mehling |first1=Michael |last2=van Asselt |first2=Harro |last3=Droege |first3=Susanne |last4=Das |first4=Kasturi |last5=Hall |first5=Catherine |title=Bridging the Divide |publisher=Climate Strategies |date=December 2023 |url=https://climatestrategies.org/wp-content/uploads/2023/12/Climate-Strategies-Report-.-Bridging-the-Divide.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mehling2023bridging, author = {Mehling, Michael and van Asselt, Harro and Droege, Susanne and Das, Kasturi and Hall, Catherine}, title = {{Bridging the Divide}}, institution = {Climate Strategies}, year = {2023}, month = dec, url = {https://climatestrategies.org/wp-content/uploads/2023/12/Climate-Strategies-Report-.-Bridging-the-Divide.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }