Designing Better and Fairer Border Carbon Adjustments

About the Event

Border carbon adjustments (BCAs) are moving from policy discussion to implementation. With the European Union's Carbon Border Adjustment Mechanism (CBAM) entering its definitive phase in 2026, there is an urgent need for global guidance on BCA design. If designed well, BCAs have the potential to curb carbon leakage and accelerate global decarbonization. If not, they risk adversely affecting trading partners, triggering geopolitical tensions, and creating significant administrative burdens, disproportionately affecting developing countries.

This webinar aims to advance global discussions on key design challenges and opportunities related to BCAs, with a focus on building a common understanding of trade-offs, risks, and possible areas of convergence among policy-makers, civil society, and other stakeholders.

The session explored questions, such as:

• What guardrails are needed to ensure BCAs advance climate goals rather than protectionism?
• How can BCAs and related policies reduce the burden on developing countries and smaller exporters?
• What opportunities exist for international cooperation to prevent fragmented or inconsistent standards?

The discussion drew on the IISD-facilitated Guidance on Border Carbon Adjustments, which provides concrete recommendations for designing BCAs that are effective, fair, and aligned with international standards.

Panel

Moderator:

• Alice Tipping, Director, Trade and Sustainable Development, IISD

Speakers:

• Aaron Cosbey, Senior Associate, IISD
• Aparna Sharma, Program Lead, Council on Energy, Environment and Water (CEEW)
• Åsa Ekdahl, Head of Environment and Climate Change, World Steel Association
• Michael Mehling, Deputy Director, Center for Energy and Environmental Policy Research at Massachusetts Institute of Technology (MIT)