Ensuring the Acceptability of Border Carbon Adjustments

This brief essay identifies some of the red-line issues that are likely to prove decisive in the political and diplomatic process to adopt a border carbon adjustment, including compliance with World Trade Organization rules, the principle of common but differentiated responsibilities in international climate cooperation, use of revenue, treatment of exports, interaction with current leakage protection measures, and consideration of foreign climate policy efforts. Fostering an early, transparent, and inclusive debate on these issues will be critical to secure the acceptability of border carbon adjustments.