Border Carbon Adjustments: Priorities for international cooperation

The document argues that while harmonizing all border carbon adjustments (BCAs) is impossible due to diverse national carbon pricing methods, international cooperation is essential to manage the proliferation of these instruments. It highlights that a diversity of BCAs increases uncertainty and administrative burdens for traders in sectors like steel, aluminum, cement, and fertilizers, which are critical for the export revenues of many developing countries. The brief suggests that strategic international discussion is a necessary alternative to trade disputes within the World Trade Organization's dispute settlement system.

• The diversity of national carbon pricing mechanisms, including emissions trading systems (ETS) and carbon taxes, makes the full harmonization of all border carbon adjustments (BCAs) impossible.
• A proliferation of diverse BCAs creates increased uncertainty and administrative burdens for traders in sectors such as cement, fertilizers, aluminum, and steel, which are vital for the heavy industry and export revenues of several developing countries.
• International cooperation on BCAs is necessary to mitigate political tensions and facilitate trade for exposed sectors, serving as a strategic alternative to the likelihood of challenges under the World Trade Organization's dispute settlement system.

APA

Barsauskaite, I., & Tipping, A. (2023). Border Carbon Adjustments: Priorities for international cooperation. International Institute for Sustainable Development. https://www.iisd.org/publications/brief/border-carbon-adjustments-international-cooperation

Chicago

Barsauskaite, I., and Alice Tipping. Border Carbon Adjustments: Priorities for international cooperation. International Institute for Sustainable Development, 2023. https://www.iisd.org/publications/brief/border-carbon-adjustments-international-cooperation.

Wikipedia

{{cite report |last1=Barsauskaite |first1=I. |last2=Tipping |first2=Alice |title=Border Carbon Adjustments: Priorities for international cooperation |publisher=International Institute for Sustainable Development |date=29 August 2023 |url=https://www.iisd.org/publications/brief/border-carbon-adjustments-international-cooperation |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{barsauskaite2023border, author = {Barsauskaite, I. and Tipping, Alice}, title = {{Border Carbon Adjustments: Priorities for international cooperation}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = aug, url = {https://www.iisd.org/publications/brief/border-carbon-adjustments-international-cooperation}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }