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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 document is a response by the NGO Sandbag to a joint consultation by the UK, Scottish, Welsh, and Northern Irish governments regarding the future of carbon pricing in the UK. Sandbag argues against the creation of a standalone UK Emissions Trading System (ETS), citing risks of high volatility and market failure. Instead, it recommends that the UK remain part of the EU ETS or, if that is not possible, implement a carbon tax with a price floor based on EU ETS averages. The response also suggests expanding carbon pricing to fossil gas and fugitive methane, ending the zero-emissions treatment of large-scale biomass burning, and distributing carbon revenues to citizens as a 'climate dividend'.

This policy brief by the International Institute for Sustainable Development (IISD) examines the implementation of carbon pricing mechanisms in Indonesia, the Philippines, and Viet Nam. It details the current legislative status, the deployment of emissions trading systems (ETS), and the challenges associated with carbon taxes and international trade implications, such as the EU's Carbon Border Adjustment Mechanism (CBAM).