Global Dialogue on Border Carbon Adjustments

This report summarizes stakeholder dialogues from Brazil, Canada, Trinidad and Tobago, the United Kingdom, and Vietnam regarding the design, implementation, and impacts of border carbon adjustments (BCAs). It examines BCAs as a tool to prevent carbon leakage, compares the emerging systems in the EU and UK, and details stakeholder concerns regarding emissions measurement, equity for developing nations, and the potential for trade frictions.

• Border carbon adjustments (BCAs) are designed to mitigate carbon leakage, which occurs when domestic carbon pricing displaces economic activity and greenhouse gas emissions to jurisdictions with less stringent policies. In Canada, for example, announced policies including an industrial carbon price of CAD 170/tonne by 2030 are forecast to create high leakage risks in the iron and steel, basic chemicals, fertilizers, and pulp and paper sectors.
• The European Union (EU) and United Kingdom (UK) are leading the implementation of BCAs. The EU CBAM transition period began in 2023 with reporting requirements, with fees applying from 2026. The UK plans to implement its CBAM starting in 2027 without a transitional phase. Both focus primarily on upstream products, though the UK includes glass and ceramics while excluding electricity, which the EU covers.

APA

Bonnet, A. (2024). Global Dialogue on Border Carbon Adjustments. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-09/global-dialogue-border-carbon-adjustments.pdf

Chicago

Bonnet, Antoine. Global Dialogue on Border Carbon Adjustments. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-09/global-dialogue-border-carbon-adjustments.pdf.

Wikipedia

{{cite report |last1=Bonnet |first1=Antoine |title=Global Dialogue on Border Carbon Adjustments |publisher=International Institute for Sustainable Development |date=September 2024 |url=https://www.iisd.org/system/files/2024-09/global-dialogue-border-carbon-adjustments.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bonnet2024global, author = {Bonnet, Antoine}, title = {{Global Dialogue on Border Carbon Adjustments}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = sep, url = {https://www.iisd.org/system/files/2024-09/global-dialogue-border-carbon-adjustments.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }