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This IISD policy brief examines design elements of border carbon adjustments (BCAs) that should be the focus of international cooperation to reduce political tension and administrative burdens for traders, particularly in developing countries.

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 policy brief by the International Institute for Sustainable Development (IISD) examines the need for international cooperation on the design and implementation of Border Carbon Adjustments (BCAs). It identifies key technical and political friction points—such as emissions calculation standards, geographical exemptions, and revenue use—and evaluates various multilateral, regional, and bilateral forums that could facilitate a coordinated approach to avoid trade tensions and administrative burdens.

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.