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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