A Border Carbon Adjustment (BCA):
- Addresses a major source of emissions: those embedded in a nation’s imports.
- Provides a financial incentive to overseas producers to invest in low emission technology.
- Reduces carbon leakage and ensures fair competition for domestic producers reducing their own emissions.
- Incentivises citizens to choose lower carbon products.
- Uses implementation and enforcement mechanisms that are already universally practised.
- Requires no international negotiations, but is aligned with the direction of travel towards climate ambition in the EU and elsewhere.
- Is seen as a fair policy across the political spectrum in key countries proposing it.
- Raises funds that can be used to promote a just transition: at home, alleviating any impact from higher prices; and internationally, providing climate finance for adaptation and mitigation among affected nations.
