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Global Principles for Effective Border Adjustments
Global Principles for Effective Border Adjustments
Reliance on the “Brussels effect” to tackle carbon leakage risks undermining the global climate action agenda, according to the International Chamber of Commerce (ICC). The global business organisation has called on governments to establish a new multilateral process to agree on global norms for the design, implementation and coordination of border carbon adjustments – reflecting growing concern within the business community about the potential adverse impacts of a proliferation of unilateral trade measures to tackle carbon leakage.
In a new paper, “Global Principles for Effective Border Carbon Adjustments”, the global business organisation recognises the clear rationale for introducing border carbon adjustments given prevailing asymmetries in domestic climate policies – but cautions that a patchwork of uncoordinated national interventions could create severe compliance challenges for companies trading internationally and, moreover, undermine essential international cooperation to fight climate change.