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Exposure Of Chinese Exports To Potential Border Carbon Adjustments

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This policy brief examines the potential impact of Border Carbon Adjustments (BCAs) on exports from China, emphasizing that the level of exposure depends heavily on design details such as the products included, the applied CO2 price, and the method used to assess carbon content.

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  • Border Carbon Adjustments (BCAs) are proposed as a mechanism to limit distortions in consumption and production caused by cost asymmetries when some countries implement carbon pricing and others do not. BCAs function by requiring the purchase of emissions certificates or the payment of a tax based on the carbon content of imports.
  • The exposure of Chinese exports to BCAs is subject to significant uncertainty based on three primary design factors: the specific products included in the adjustment, the CO2 price that is applied, and the methodology used to assess the CO2 content of those goods.
  • A separate study by the International Institute for Sustainable Development (IISD) indicates that the global transition to renewable energy could create a $278 billion revenue gap by 2030 for six emerging economies (Brazil, Russia, India, Indonesia, China, and South Africa) due to their reliance on fossil fuel revenues.

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APA
Kitson,, L. K. W. Q. (2011). Exposure Of Chinese Exports To Potential Border Carbon Adjustments. International Institute for Sustainable Development. https://www.iisd.org/publications/report/exposure-chinese-exports-potential-border-carbon-adjustments
Chicago
Kitson,, Lucy Kitson,Peter Wooders,Wei Qiu,Lucy. Exposure Of Chinese Exports To Potential Border Carbon Adjustments. International Institute for Sustainable Development, 2011. https://www.iisd.org/publications/report/exposure-chinese-exports-potential-border-carbon-adjustments.
Wikipedia
{{cite report |last1=Kitson, |first1=Lucy Kitson,Peter Wooders,Wei Qiu,Lucy |title=Exposure Of Chinese Exports To Potential Border Carbon Adjustments |publisher=International Institute for Sustainable Development |date=5 July 2011 |url=https://www.iisd.org/publications/report/exposure-chinese-exports-potential-border-carbon-adjustments |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{kitson2011exposure, author = {Kitson,, Lucy Kitson,Peter Wooders,Wei Qiu,Lucy}, title = {{Exposure Of Chinese Exports To Potential Border Carbon Adjustments}}, institution = {International Institute for Sustainable Development}, year = {2011}, month = jul, url = {https://www.iisd.org/publications/report/exposure-chinese-exports-potential-border-carbon-adjustments}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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