Climate and Competitiveness Border Carbon Adjustments in Action 2025

FINANCE Internal carbon pricing (ICP) and investment decision frameworkEstablish sufficiently high, company-wide carbon-pricing mechanisms to internalize carbon costs in investment decisions, operational planning and performance evaluation, creating incentives for emissions reductions across business units that can strengthen the organization’s posture on compliance Green bond issuance and ESG optimizationImprove ESG ratings to access sustainability-focused capital, and issue green bonds for environmental projects or negotiate loans with interest rates tied to sustainability performance to fund decarbonization activities, which can reduce exposure to BCA and national policies R&D R&D investment and patent development58 Establish clean-technology research centres, partner with universities and create intellectual property for licensing and competitive protection Demonstration projectsBuild showcase facilities that demonstrate advanced environmental performance and emissions-reduction capabilities that reduce policy exposure Stakeholder engagement strategies Stakeholder engagement TABLE 7 WORKFORCE Employee engagement and training programmesCreate company-wide efficiency and sustainability improvement programmes that engage employees in emissions-reduction efforts SUPPLIERS Supplier sustainability and local sourcing programmesImplement comprehensive environmental standards for suppliers and prioritize local suppliers to reduce transport emissions; utilize vetted networks of low-carbon material, like the First Suppliers Hub, to complement these efforts, and source from suppliers that meet recognized decarbonization thresholds to strengthen sustainability and reduce BCA exposure across the value chain Supply chain digitalization and collaborative innovationUse digital solutions for supply chain transparency and partner with suppliers on joint sustainability projects Climate and Competitiveness: Border Carbon Adjustments in Action 28