Climate and Competitiveness Border Carbon Adjustments in Action 2025

Images: Midjourney, Getty Images Disclaimer 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.Contents Foreword Executive summary Introduction 1 Overview and industry responses to BCAs 1.1 Design and implementation of BCAs 1.2 Global evolution of BCAs and carbon-pricing frameworks 1.3 Environmental and economic impacts of BCAs 1.4 Private-sector strategic responses under different regimes 1.5 How leaders of carbon-intensive industries are responding to BCAs 1.6 Wider industry responses to border carbon adjustments 2 Strategy playbook 2.1 Plan administration of carbon-pricing policies 2.2 Achieve domestic and international compliance 2.3 Change operations to decarbonize – and engage stakeholders 2.4 Financial considerations 3 From insight to action Contributors Endnotes3 4 6 7 7 8 9 9 11 18 21 23 26 26 32 34 36 39 Climate and Competitiveness: Border Carbon Adjustments in Action 2