White Paper

Climate and Competitiveness: Border Carbon Adjustments in Action

Climate and Competitiveness: Border Carbon Adjustments in Action

Climate and Competitiveness: Border Carbon Adjustments in Action

This paper examines how border carbon adjustments are changing trade, market access, and corporate strategy. Using the EU’s Carbon Border Adjustment Mechanism as the leading example, it explains that BCAs are designed to prevent carbon leakage and equalize treatment between domestic and imported goods, but they also create concerns about protectionism, complexity, and fragmented rules across jurisdictions. The report argues that BCAs should be seen not only as compliance burdens but as catalysts for competitiveness, especially in emissions-intensive sectors. Drawing on examples from Brazil, South Africa, India, and China, it presents a CEO-focused PACE framework: Plan for carbon pricing, Achieve domestic and international compliance, Change operations to cut emissions, and Engage stakehold

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