Publication

This paper provides a brief overview of some of the proposals related to border carbon adjustments (BCAs) and discusses them from an economic and legal perspective. It also takes a look at potential consequences for developing countries' production and trade should BCAs be introduced in major markets. The paper also examines whether BCAs would be compatible with certain articles in the General Agreement on Tariffs and Trade (GATT). The authors frame the discussion in the context of the UN Framework Convention on Climate Change and concerns over economic competitiveness.