The Trade Tool That Could Unlock Climate Ambitions
A op-ed for Barron's by Billy Pizer, RFF's VP for Research and Policy Engagement, dives into the feasibility of border carbon adjustments to even the playing field for international trade.
"As I write, world leaders are meeting at COP26—the United Nations climate conference—to discuss the policies needed to drive deep decarbonization globally. Border carbon adjustments are one policy option that could help to support national climate ambition as net-zero technologies are brought to scale and as all countries converge toward higher goals. Well-designed BCAs could help align global trade around climate-friendly principles, reduce penalties for countries that have pursued ambitious environmental policies, and prove an important stopgap on our collective path toward bold action on climate change. If we want to encourage climate action while protecting competition and trade, BCAs may be an effective mechanism."