Border Carbon Adjustments: Priorities for international cooperation

This IISD policy brief examines design elements of border carbon adjustments (BCAs) that should be the focus of international cooperation to reduce political tension and administrative burdens for traders, particularly in developing countries.

• The diversity of carbon pricing mechanisms, including Emissions Trading Systems (ETS) and carbon taxes, makes the total harmonization of all border carbon adjustments impossible, though certain elements remain priorities for international cooperation.
• A proliferation of diverse BCAs globally may increase uncertainty and administrative burdens for traders in sectors such as cement, fertilizers, aluminum, and steel, which are critical to the export revenues and heavy industry of many developing countries.
• While BCA measures are likely to be challenged via the World Trade Organization's dispute settlement system, strategic international discussion is preferred over trade disputes to address the intersection of climate change and trade.

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} }