Climate and Competitiveness Border Carbon Adjustments in Action 2025

From insight to action3 Companies can manage BCA-specific risks by integrating internal carbon pricing, supply chain engagement, low-carbon technologies and collaborative strategies. Companies should conduct scenario planning for potential BCA expansions, evaluating different exposures, implementation timelines and likelihoods to anticipate compliance and trade impacts. The case studies show that companies across regions face direct and indirect pricing risks, particularly through BCAs. Trade-exposed sectors, particularly in emissions-intensive industries, but also in sectors that utilize emissions-intensive components, will soon experience rising costs, administrative burdens and shifts in supply chain competitiveness. However, these challenges offer opportunities to strengthen resilience, innovation and market positioning, where companies can decouple growth from emissions, thus reducing their BCA exposure and increasing their capacity to leverage BCAs for competitiveness. Members of the Alliance of CEO Climate Leaders60 have collectively demonstrated emissions can be decoupled from production growth through coordinated technology investment and transparent reporting. By aligning corporate strategies with measurable sectoral targets, the Alliance showcases how executive-level commitment and collaboration can deliver both competitiveness and verifiable emissions reductions – a model relevant to industries exposed to BCAs. Climate and Competitiveness: Border Carbon Adjustments in Action 34