Meanwhile, climate and trade pressures are intensifying. The EU CBAM will become the first fully implemented BCA as of January 2026, signalling a new era in which carbon competitiveness is enforced at the border. For exporters from emerging economies such as China, Brazil, India and South Africa, this creates both pressure and opportunity: comply and remain cost-competitive in European markets or risk exclusion from high-value markets. The EU CBAM could influence trade patterns, but it may also drive systemic shifts towards cleaner production. This white paper presents case studies across numerous emissions-intensive sectors from the BASIC group of countries (Brazil, South Africa, India and China) to illustrate how leading companies in emerging markets are already adapting. From Chinese steel and battery manufacturers embedding carbon management into their global strategy, to a Brazilian energy company aligning energy transition pathways with national resource advantages, to Indian and South African companies navigating both domestic carbon policies and international trade risks, the message is clear: proactive alignment could yield a competitive edge.This white paper offers a strategy playbook for executives, built on a PACE framework (Plan, Achieve, Change, Engage). It highlights the urgent actions CEOs must prioritize: –Plan for the integration of carbon pricing into strategic and financial planning –Achieve compliance with domestic carbon rules and international BCAs –Change operations to reduce greenhouse gas (GHG) emissions and enhance competitiveness –Engage stakeholders to align value chains and support policy objectives This playbook is designed for CEOs, CFOs, COOs and supply chain, procurement and sustainability officers as well as corporate strategists navigating climate policy, carbon-embedded trading landscapes and investor expectations. It provides actionable guidance relevant to companies for effectively navigating carbon pricing and BCA requirements, including the EU CBAM. The message is clear: proactive alignment could yield a competitive edge. Climate and Competitiveness: Border Carbon Adjustments in Action 5

Climate and Competitiveness Border Carbon Adjustments in Action 2025