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Trade ministers must pull their weight on climate action
The Forum on Trade, Environment, & the SDGs argues that the lack of a formal, ministerial-level international agenda for climate and trade leads to policy silos and trade tensions. The author proposes the creation of a Trade Ministers’ Coalition for Cooperation on Climate Action to align global trade flows with the Paris Agreement and ensure a just transition.
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Document type: Statement
Principles and Best Practice in Border Carbon Adjustment: A modest proposal
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.
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Document type: Briefing
Enabling Climate Ambition: Border carbon adjustment in Canada and abroad
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.
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Document type: Report
INSIDER: Designing Low-carbon Product Standards for Cement and Steel in the United States
This briefing by the World Resources Institute discusses the design and implementation of low-carbon product standards for the cement and steel industries in the United States to help achieve Paris Agreement goals.
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Document type: Briefing
Feedback from: Ember
This document is a feedback submission from the NGO Ember to the European Commission regarding the revision of guidelines for Trans-European energy infrastructure. Ember argues for a rapid shift away from fossil gas infrastructure, an increase in renewable energy sources (RES) and grid flexibility, and more transparent governance of infrastructure planning.
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Document type: Statement
The Path of Least Resistance
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.
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Document type: Report
The path of least resistance
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.
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Document type: Report
DRAFT REGULATIONS: TRADE EXPOSURE ALLOWANCE
The document presents draft regulations for the Trade Exposure Allowance under section 10 of the Carbon Tax Act, 2019, in South Africa. These regulations establish a mechanism to provide transitional support to specific sectors and subsectors to mitigate the risk of carbon leakage and maintain industry competitiveness while implementing carbon pricing to meet Paris Agreement goals.
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Document type: Report
Designing Border Carbon Adjustments for Enhanced Climate Action
This research paper analyzes border carbon adjustments (BCAs) as a mechanism to prevent carbon leakage—the shift of emissions from countries with strict climate policies to those with less stringent ones—within the fragmented architecture of the Paris Agreement.
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Document type: Research paper
Barriers to Industrial Decarbonisation
This report by Sandbag summarises feedback from 15 stakeholders regarding the barriers to decarbonising industrial sectors within the EU's Emissions Trading System (ETS). It identifies systemic issues in carbon pricing, the design of product benchmarks, and regulatory norms that discourage breakthrough low-carbon investments in favour of incremental improvements.
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Document type: Report
The Final Carbon Fatcat
This report by Sandbag analyzes how flaws in the EU Emissions Trading Scheme (ETS) have created perverse incentives for the European cement sector, leading to over-allocation of free allowances and a failure to incentivize deep decarbonization. The authors argue that the ETS has effectively subsidized the production of high-carbon clinker, resulting in a net import of emissions into the EU.
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Document type: Report
Options and issues for restricted linking of emissions trading systems
This research paper explores 'restricted linking' as an alternative to full linking of emissions trading systems (ETSs), aiming to capture economic, political, and administrative benefits while mitigating risks related to regulatory autonomy and over-allocation.
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Document type: Research paper
Exposure of Chinese Exports to Potential Border Carbon Adjustments
This research paper evaluates the potential economic impact of Border Carbon Adjustments (BCAs) on Chinese exports, specifically focusing on proposed schemes from the United States and the European Union. Using 2007 input-output tables and IPCC methodology, the authors analyze how different carbon pricing, product coverage, and emission calculation methods (direct vs. embodied) affect the vulnerability of various industrial sectors.
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Document type: Research paper
Lessons for Canada: Implementation of Australia’s Carbon Pricing Mechanism
This policy brief by the International Institute for Sustainable Development (IISD) analyzes the implementation of Australia's Clean Energy Future carbon pricing mechanism. It details the scheme's structure, including its transition from a fixed-price period to a cap-and-trade system, the associated compensation measures for industry and households, and the resulting impacts on subnational policies. The document highlights lessons for Canada, specifically regarding the importance of robust emissions reporting and the risks of locking in fixed prices amidst volatile international markets.
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Document type: Policy brief
Exposure Of Chinese Exports To Potential Border Carbon Adjustments
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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Document type: Policy brief
REDD Development Dividend Task Force Meeting Report
The REDD Development Dividend Task Force Meeting Report documents a January 2011 gathering in Manila, Philippines, hosted by the International Institute for Sustainable Development (IISD) and ASB-ICRAF. The meeting aimed to build policy capacity for developing country negotiators and land managers to ensure that Reducing Emissions from Deforestation and Forest Degradation (REDD) mechanisms deliver a 'Development Dividend'—balancing robust greenhouse gas reductions with sustainable development benefits, equity, and quality safeguards.
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Document type: Report
SEI Response to Criticism Raised about the SEI Working paper on Adipic Acid CDM Projects
This document is a formal response by the Stockholm Environment Institute (SEI) to critiques of a working paper concerning Clean Development Mechanism (CDM) projects for adipic acid. The authors, Anja Kollmuss and Michael Lazarus, defend their findings regarding the competitive advantages provided by Certified Emission Reductions (CER) revenues and the resulting risk of carbon leakage.
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Document type: Statement
Industrial N2O Projects Under the CDM: The Case of Nitric Acid Production
This research paper evaluates the environmental integrity of nitric acid projects under the Clean Development Mechanism (CDM), specifically examining risks of carbon leakage and baseline emission manipulation. The authors conclude that while the CDM successfully fostered abatement in a sector that previously lacked such practices, the current methodologies are complex and lead to significant credit issuance delays. The paper recommends transitioning to a common benchmarking approach for baseline emissions to simplify the process and safeguard against leakage.
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Document type: Research paper
The Carbon Rich List
The report 'The Carbon Rich List' by Sandbag analyzes the EU Emissions Trading Scheme (EU ETS) at a company level for 2008 and projections through 2012. It identifies a group of 'Carbon Fat Cats'—companies that received excessive free permit allocations, allowing them to generate windfall profits or bank permits for future use without reducing emissions. The report highlights a systemic imbalance where the power sector bears the burden of emissions reductions to compensate for industrial surpluses, and recommends tightening the scheme through higher targets, limited offsets, and improved company-level data reporting.
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Document type: Report
Options for Policy-Makers Addressing Competitiveness, Leakage and Climate Change
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.
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Document type: Report