9. Border Carbon Adjustments

Border Carbon Adjustments have been discussed for many years but little implemented.  However they are now receiving renewed political impetus, especially in Europe.

The issues around BCAS are summarised in a report, of which I was the principal author, which looks at

  • the design issues raised by BCAs,
  • their advantages, and
  • the potential difficulties with their implementation.

It covers a range of issues, some of which have received limited discussion to date, including:

  • The different ways of implementing BCAs – tariffs, different types of allowances, and relationship to consumption taxes
  • Dealing with imports from jurisdictions with their own carbon pricing
  • Phasing in of BCAs
  • Use of different benchmarks for different purposes (BCAs vs. free allocation)

The report, including a summary table of the issues that need to be addressed is included here as a Pdf:

2019-SB-Border-Adjustments_DIGI-1

And can also be found using this link:

https://sandbag.org.uk/wp-content/uploads/2019/12/2019-SB-Border-Adjustments_DIGI-1.pdf

Last updated 9th December 2019