Climate and Competitiveness Border Carbon Adjustments in Action 2025

Operational strategies Operational excellence TABLE 6 POWER Renewable energy systems and storageInstall solar panels, wind turbines and other renewable systems with storage to optimize use; alternatively, where available (e.g. China), secure a green power direct connection (GPDC) to solar and wind resources via dedicated lines, providing CBAM-compliant, verifiable green power Corporate PPAs Assess Scope 2 emissions across facilities and production tiers to identify sites with the highest carbon intensity to prioritize for renewable PPAs; negotiate long-term power purchase agreements with renewable energy developers in order to directly reduce the emissions intensity of production and demonstrate verifiable decarbonization of electricity inputs – two important factors in BCA exposure PROCESS Advanced technology adoption and process optimization55 Deploy new clean production technologies, energy efficiency systems, emissions-reduction equipment, lean manufacturing and advanced process control systems, including digital emissions monitoring solutions that can simplify disclosure under BCAs and national policies Comprehensive energy audits and smart manufacturing56Systematic identification and implementation of energy efficiency options, internet of things deployment, data analytics and AI solutions for real-time optimization can advance achievement of BCA and national policy emissions reductions and energy efficiency targets ENVIRONMENT Waste-to-value and circular economy57Convert waste streams into revenue sources through circular economy approaches, design products for recyclability and reuse, and minimize waste generation to reduce embedded emissions from procurement and processing of new raw materials or manufactured goods Green product development and service model innovationCreate product lines designed for environmental performance and develop service-based business models that optimize resource use, which are ideal for business sales into any markets under carbon pricing policies Impact measurement and sustainability- linked financingDevelop systems for measuring environmental impact and negotiate loans with interest rates tied to sustainability performance, which can supplement emissions disclosures under carbon-pricing policies Climate and Competitiveness: Border Carbon Adjustments in Action 27