Border Carbon Adjustment


A border carbon adjustment (BCA), sometimes called a border tax adjustment (BTA) or carbon border adjustment mechanism (CBAM) is a policy to establish cost equivalency with some domestic compliance cost. The objective is to reduce leakage and foster fair market competition where local carbon-emission regulations may be more or less aggressive.

The connection to CDR is with policies that require or incentivize it and become an element of the BCA. The need for well-documented MRV become greater when a potentially major trade issue like BCA begins to take net carbon emissions into account.


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