Border Carbon Adjustments (BCAs) are also known as border tax adjustments (BTAs), or border tax measures, (BTMs).
Essentially they are unilateral measures that a state imposes when a good is imported from an industry or firm in a country that has not ‘comparably offset’ the greenhouse gas emissions associated with the good’s production.
The stated aim is to prevent carbon leakage.
BCA could be a flat tariff, a tax, or a requirement for the importer to purchase carbon credits that would compensate the country with more stringent regulations for the loss of competitiveness that it incurs because of its emissions standards.
Aaron Cosbey(ICTSD) has done estimates for impact on South African (29% of exports exposed to 2.7 billion Rand in Adjustment taxes) & Indian (23.5%) exports towards the EU, in the presence of an imaginary BCA in the EU.
Source: International Centre for Trade and Sustainable Development, Geneva (Not-for-Profit Think tank)
Essentially they are unilateral measures that a state imposes when a good is imported from an industry or firm in a country that has not ‘comparably offset’ the greenhouse gas emissions associated with the good’s production.
The stated aim is to prevent carbon leakage.
BCA could be a flat tariff, a tax, or a requirement for the importer to purchase carbon credits that would compensate the country with more stringent regulations for the loss of competitiveness that it incurs because of its emissions standards.
Aaron Cosbey(ICTSD) has done estimates for impact on South African (29% of exports exposed to 2.7 billion Rand in Adjustment taxes) & Indian (23.5%) exports towards the EU, in the presence of an imaginary BCA in the EU.
Source: International Centre for Trade and Sustainable Development, Geneva (Not-for-Profit Think tank)
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