Climate and Competitiveness: Border Carbon Adjustments in ActionW H I T E P A P E RD E C E M B E R 2 0 2 5In collaboration with Climate Finance AsiaImages: Midjourney, Getty ImagesDisclaimer This document is published by the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders.© 2025 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system.ContentsForewordExecutive summaryIntroduction1 Overview and industry responses to BCAs1.1 Design and implementation of BCAs1.2 Global evolution of BCAs and carbon-pricing frameworks1.3 Environmental and economic impacts of BCAs1.4 Private-sector strategic responses under different regimes1.5 How leaders of carbon-intensive industries are responding to BCAs1.6 Wider industry responses to border carbon adjustments2 Strategy playbook2.1 Plan administration of carbon-pricing policies 2.2 Achieve domestic and international compliance2.3 Change operations to decarbonize – and engage stakeholders2.4 Financial considerations3 From insight to actionContributorsEndnotes3467789911182123262632343639Climate and Competitiveness: Border Carbon Adjustments in Action2ForewordThe global economy is entering a new chapter in the transition to net zero. Even within a context of geopolitical shifts, carbon-pricing mechanis...
