Designing Border Carbon Adjustments

The document outlines the role of border carbon adjustments (BCAs) in mitigating emissions leakage and competitiveness concerns resulting from asymmetrical domestic climate actions following the Paris Agreement. It suggests that BCAs can incentivize trade partners to improve their climate policies and vary in effectiveness from moderate to very high in tackling leakage.

• Border carbon adjustments (BCAs) are instruments designed to address uneven climate efforts by either including imports in or exempting exports from a carbon constraint.
• BCAs can mitigate emissions leakage—where domestic emission reductions are offset by increases elsewhere—level the competitive playing field, and encourage trade partners to enhance their own climate efforts.
• Economic modelling indicates that the capacity of BCAs to address emissions leakage ranges from moderate to very high.

APA

Stockholm Environment Institute (2017). Designing Border Carbon Adjustments. https://www.sei.org/publications/design-border-carbon-adjustments-climate/

Chicago

Stockholm Environment Institute. Designing Border Carbon Adjustments. 2017. https://www.sei.org/publications/design-border-carbon-adjustments-climate/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Designing Border Carbon Adjustments |date=24 October 2017 |url=https://www.sei.org/publications/design-border-carbon-adjustments-climate/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2017designing, author = {{Stockholm Environment Institute}}, title = {{Designing Border Carbon Adjustments}}, institution = {Stockholm Environment Institute}, year = {2017}, month = oct, url = {https://www.sei.org/publications/design-border-carbon-adjustments-climate/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }