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Border Carbon Adjustments: What Risk for South African Exporters?

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Border Carbon Adjustments: What Risk for South African Exporters?

This policy brief, based on a longer analysis prepared by the IISD for South African Renewable Initiative, estimates the costs that would be borne by South African exporters in various sectors if the U.S. and/or the EU implemented border carbon adjustment (BCA) policies.

Using plausible assumptions about the characteristics of any eventual BCA scheme, it identifies the vulnerable sectors, and shows what costs each would bear assuming current production methods and trade flows. It ends by speculating about the ways in which South African exporters might avoid such charges, should BCA ever be implemented.

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