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This briefing by the International Institute for Sustainable Development (IISD) examines the intersection of international trade and climate policy ahead of COP 30. It focuses on the use of trade tools—such as border carbon adjustments, green subsidies, and deforestation-free import rules—to advance climate goals while highlighting the risks of market fragmentation and the potential for these measures to deepen inequities between developed and emerging economies.

This report details a series of national dialogues in Brazil regarding Border Carbon Adjustments (BCAs), specifically focusing on the impacts of the European Union's Carbon Border Adjustment Mechanism (CBAM). While the immediate economic impact of the EU CBAM on Brazil is estimated to be limited, the report highlights significant risks if such mechanisms proliferate to other major trading partners like the United States and Japan. The document synthesizes the concerns of the Brazilian government and industrial sectors, emphasizing the need for standardized emissions reporting, the recognition of non-price-based climate efforts, and the provision of financial support for technological adaptation in developing countries.

This policy brief by the International Institute for Sustainable Development (IISD) examines the design choices and trade-offs associated with Border Carbon Adjustments (BCAs). It describes BCAs as measures intended to prevent 'carbon leakage' by ensuring imported goods face carbon costs equivalent to domestic production, thereby supporting the integrity of domestic carbon pricing. The document outlines key decision points for policy-makers, including the scope of trade flows, geographic exemptions, emission categories (Scopes 1, 2, and 3), calculation methods for embedded emissions, and the allocation of generated revenues.

This briefing by the International Institute for Sustainable Development (IISD) argues that Border Carbon Adjustment (BCA) mechanisms are becoming a reality as countries increase climate ambition. The author proposes a set of international principles and best practices to prevent BCAs from becoming protectionist tools and suggests the World Trade Organization (WTO) as the ideal forum for these discussions.

This report discusses the necessity and challenges of implementing a border carbon adjustment (BCA) mechanism in Canada to protect energy-intensive trade-exposed sectors as domestic carbon prices rise toward 2030.

This report by the International Institute for Sustainable Development (IISD) and Clean Prosperity examines the design and implementation of a border carbon adjustment (BCA) for Canada. It analyzes how a BCA could prevent carbon leakage—where emissions-intensive and trade-exposed (EITE) industries relocate or are undercut by foreign competitors—while maintaining WTO compliance. The document explores various design scenarios, identifies the most vulnerable Canadian sectors, and evaluates the potential impact of similar regimes being developed in the United States and the European Union.

This report by Ember investigates the phenomenon of 'carbon leakage' where EU countries import electricity from non-EU countries that lack carbon pricing, effectively offshoring emissions to 'offshore carbon havens' like Turkey and Ukraine. The authors argue for the implementation of a Border Carbon Adjustment (BCA) on electricity imports to protect the integrity of EU climate policy and incentivize carbon pricing in neighboring states.

This report by Sandbag analyzes how the disparity in carbon pricing between the EU Emissions Trading Scheme (EU ETS) and its non-EU neighbors leads to 'carbon leakage,' where high-carbon electricity, primarily from coal, is imported into the EU. The authors argue that this undermines EU climate goals and incentivizes the continued use of coal in neighboring states. To combat this, the report proposes the implementation of a border carbon adjustment (BCA) specifically for electricity imports.

This document is an address by Aaron Cosbey of the International Institute for Sustainable Development (IISD) delivered to the 49th Session of UNCTAD’s Trade and Development Board on September 25, 2012. Cosbey argues that the outcomes of the Rio+20 conference are insufficient for guiding states through the trade tensions arising from the transition to a green economy. He highlights the conflict between the use of green industrial policies—such as subsidies and local content requirements—and their impact on the multilateral trading system, particularly for developing countries. Cosbey calls for a non-legal, non-negotiating framework, potentially led by UNCTAD, to determine the propriety and effectiveness of these measures before they escalate into formal trade disputes.

This report by the International Institute for Sustainable Development (IISD) analyzes policy options for addressing competitiveness and carbon leakage resulting from differential climate change policies and measures (PAMs). It evaluates the economic and environmental effectiveness of border carbon adjustments (BCAs), free allowance allocations, and sectoral approaches, while examining their legality under World Trade Organization (WTO) rules and their political implications for developed and developing nations.

This briefing paper examines the economic, legal, and geopolitical challenges of implementing Border Carbon Adjustments (BCAs) to address industrial competitiveness and carbon leakage. It analyzes the tension between unilateral trade measures and international climate principles, specifically the UNFCCC's principle of common but differentiated responsibility.

This briefing by Aaron Cosbey of the International Institute for Sustainable Development (IISD) proposes a set of principles and best practices to guide the design and implementation of Border Carbon Adjustments (BCA). The author argues that as countries increase climate ambition and carbon pricing, BCAs are becoming necessary to prevent 'carbon leakage'—the relocation of emissions to countries with less stringent policies—while warning that such mechanisms must avoid becoming tools for protectionism.

This report by the International Institute for Sustainable Development (IISD) provides a set of guidelines for the design and implementation of Border Carbon Adjustment (BCA) regimes. Based on two years of national stakeholder consultations and Global Stakeholder Dialogues, the document offers recommendations to help policy-makers balance climate ambition with the need to avoid trade frictions and regulatory fragmentation.

This research paper by Aaron Cosbey of the International Institute for Sustainable Development (IISD) examines the conceptual, legal, and geopolitical challenges of implementing Border Carbon Adjustments (BCAs). It analyzes BCAs as tools to address industrial competitiveness and carbon leakage, while evaluating their compatibility with World Trade Organization (WTO) rules and their potential impact on international climate negotiations.