Introduction CEOs will benefit from a strategic framework to align corporate decisions with carbon policies, trade dynamics and decarbonization imperatives. The intersection of climate policy, trade dynamics and decarbonization imperatives is increasingly shaping global business strategy. Even amid uneven momentum across geographies, climate-aligned strategies are unlocking new pathways for growth, competitiveness and long-term value beyond compliance. Executives require actionable insights that connect operational decisions to broader geopolitical, trade and competitive contexts. This white paper is designed to equip CEOs and C-suite leaders, particularly in the BASIC countries (Brazil, South Africa, India and China) and other emerging economies, with a strategic framework for navigating carbon-pricing mechanisms (CPMs) and BCAs. Rather than focusing solely on micro-level operational guidance, it situates corporate decisions within the larger dynamics of global trade, market share and competitive advantage. The white paper is structured as follows: Section 1. Overview and industry responses to BCAs: Provides context on the emerging landscape of global BCA and carbon-pricing frameworks, examining trade impacts, carbon leakage mitigation and corporate strategy; synthesizes insights from case studies and industry discussions, highlighting how companies in emissions-intensive sectors in BASIC countries are responding to BCAs and CPMs more broadly Section 2. Strategy playbook: Offers actionable guidance for executives, prioritizing short- and long- term interventions, investment strategies and policy engagement to strengthen competitiveness in a decarbonizing global market Section 3. Recommendations and urgent actions: Provides high-level actions for CEOs to integrate carbon pricing into operations, decarbonize supply chains, leverage green finance and collaborate across sectors, turning regulatory risks into opportunities for resilience and competitive advantage Collectively, these sections provide a high-level strategic overview of how to navigate evolving carbon regulations while delivering concrete, operationally relevant insights for CEOs and C-suite leaders. Climate and Competitiveness: Border Carbon Adjustments in Action 6

Climate and Competitiveness Border Carbon Adjustments in Action 2025