Decarbonisation dominoes: carbon border adjustments could increase clarity
The European Union released the world’s first proposal for a carbon border adjustment in July. While the proposal governs EU trade, the biggest impacts may be the reactions of players outside the EU’s borders. How will other countries respond to the EU’s proposal? Are companies prepared for those governmental policy responses? And are there ways companies or governments can circumvent border adjustments? In this insight, we examine how countries may adjust their carbon charge policy in response to a border adjustment, how companies are planning for carbon charges, and how these reactions may provide clarity for investors.