Wednesday, December 5, 2012

Publications: A Guide for the Concerned: Guidance on the elaboration and implementation of border carbon adjustment by IISD Publications Centre

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IISD Publications Centre


A Guide for the Concerned: Guidance on the elaboration and implementation of border carbon adjustment

» Aaron Cosbey, Susanne Droege, Carolyn Fischer, Julia Reinaud, John Stephenson, Lutz Weischer,Peter Wooders, ENTWINED, 2012.Paper, 22 pages, copyright: ENTWINED
When governments take strong unilateral action on climate change, they will always consider border carbon adjustment (BCA) as a means to deal with competitiveness and leakage issues. But while this tool appears straightforward it is plagued by deeply complex problems in practice, including trade law considerations, methodological challenges and consistency with principles such as common but differentiated responsibility. This guidance is the product of a seven-person international expert drafting group that wrestled with those issues and others for over two years. It goes into rare depth on all the issues that policy-makers would need to consider in building and implementing a regime of BCA. It also serves as a benchmark by which targeted exporters can assess such schemes.

Contents include:
Summary of Recommendations

  1. Starting points
    What is BCA?
    Why apply BCA?
    Criteria for judging BCA regime options
  2. Motivations
  3. Scope of applicability
    Exemptions
    Identifying goods/sectors to be covered
  4. Determining the level and type of adjustment
    Assessing the carbon content
    Modifications to the adjustment level
    Type of adjustment
    Pricing the carbon content
  5. The application of BCA to exports
  6. Use of revenues from import adjustments
  7. Other design guidance
    Pre-establishment guidance
    Operational guidance
    Sunset guidance


























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