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:
And can also be found using this link:
Last updated 9th December 2019