Background

Making the Trade System Work for Climate 2.0

This project assessed the strengths and weaknesses of various border carbon adjustment agreements, with a focus on how agreements between multiple countries/regions can increase climate-trade policy efficacy.

Photo by CHUTTERSNAP on Unsplash

Year: 2023 Past Project

  • Overview

    Border carbon adjustment agreements (BCAs) came into the spotlight as the European Union agreed to apply this mechanism in October 2023. Bringing together leading researchers on the topic, this project examined the strengths and weaknesses of various BCA agreements. Its focus was on the potential of plurilateral agreements to increase climate-trade policy efficacy.

    The research responded to the following questions:

      • What kind of legal form should any plurilateral cooperation involving BCAs ideally take?
      • What are the strengths and weaknesses of potential forums for BCA development?
      • What should plurilateral engagement on BCAs look like?
      • What specific advice and recommendations can we make to policymakers to ensure that BCAs support global action on climate change?

  • Partners

    This project was led and carried out by the following Climate Strategies members:

    • Harro van Asselt (research lead) – Senior Research Fellow, Stockholm Environment Institute (SEI), and Professor of Climate Law and Policy, University of Eastern Finland (UEF) Law School.
    • Kasturi Das – Professor of Economics and Sustainability, Institute of Management Technology, Ghaziabad, Delhi-NCR (IMTG), India.
    • Susanne Droege – Senior Fellow, Global Issues Research Division at the German Institute for International and Security Affairs, Berlin, Germany.
    • Michael Mehling – Deputy Director, MIT Center for Energy and Environmental Policy Research (MIT CEEPR), and Professor of Practice, University of Strathclyde Law School.

     

    The research received funding from the Global Challenges Foundation.

  • Events

    Past Events:

    Climate Clubs and Border Carbon Adjustments: Strengthening International Cooperation at the Interface of Climate and Trade Policy 

    Saturday 9th December | 09.00 – 10.15 GST Gulf Standard Time

    Location: Global Alliance of Universities on Climate Pavilion (no need to register)

    Find out more

    International Cooperation on Border Carbon Adjustments: Assessing the Options

    Watch the recording here

  • Publications

    Bridging the Divide: Assessing the Viability of International Cooperation on Border Carbon Adjustments

    In this report, Climate Strategies members make a case for international cooperation in relation to Border Carbon Adjustments (BCAs) and assess the current state of play to enable this cooperation. This is the final output of our project ‘Making the Trade System Work for Climate 2.0’, which investigates how international trade policy can be amended to better support global climate targets – focusing on BCAs and the potential of plurilateral agreements to increase climate-trade policy efficacy.