Guidance on Border Carbon Adjustment

Border carbon adjustments (BCAs), such as the EU’s Carbon Border Adjustment Mechanism (CBAM), are increasingly being explored by countries seeking to decarbonise emissions-intensive, trade-exposed industries while avoiding carbon leakage and competitiveness impacts.

However, there is still no international consensus on how these mechanisms should be designed and implemented in a way that is fair, transparent, and aligned with the principle of common but differentiated responsibilities and respective capabilities.

In this session, Aaron Cosbey will present guidance developed earlier this year by a diverse group of global stakeholders, highlighting key considerations for equitable and effective BCA design.

Speaker:

Aaron Cosbey

Aaron Cosbey is a development economist with over 30 years’ experience in the economics and law of sustainable development, particularly in the areas of trade and investment, with current work in the areas of climate change, trade policy, and green industrial policy. He is a Senior Associate with the International Institute for Sustainable Development, a Senior Fellow with the European Roundtable on Climate Change and Sustainable Transition, and a Senior Associate with the Inter-Governmental Forum on Mining, Minerals, Metals and Sustainable Development. He Chairs the Commission on Carbon Competitiveness (Canada) and is President of Small World Sustainability Consulting.