Ask-An-Expert Series #4: Border Carbon Adjustments: Considering Climate and Fiscal Implications for developing Countries

Please join us for the Platform for Collaboration on Tax (PCT) Ask-an-Expert Webinar on Border Carbon Adjustments: Considering Climate and Fiscal Implications for Developing Countries to be held over Zoom on Tuesday, November 5th, 9:00 to 11 am (ET).

In this webinar, leading experts will explore the evolving topic of Border Carbon Adjustments (BCAs) and their potential implications for global trade and climate policy. Further, in one way or another, climate policy measures have financial implications, and thus different tax measures may be of relevance in an appropriate policy mix. With approximately one-quarter of global carbon dioxide emissions embedded in internationally traded goods, trade policy plays a pivotal role in supporting countries’ efforts to decarbonize and address climate change. As the world moves towards more stringent climate policies, the risk of carbon leakage—where industries relocate to regions with weaker environmental regulations—is growing. BCAs, such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), have emerged as potential solutions to address this challenge, but they also raise concerns regarding international competitiveness, climate justice, revenue implications, and the complex administrative issues surrounding emissions reporting requirements.

The webinar will feature experts affiliated with or engaged in relevant work at the European Commission, IMF, OECD, United Nations, and World Bank to discuss the intricacies of BCAs and the key considerations for developing countries. The event will provide comprehensive insights into how to navigate the complex landscape of BCAs and the strategies and services international organizations have at their disposal to assist countries to deal with challenges that arise in the context of BCAs.

The webinar will promote peer learning amongst policymakers keen on understanding the challenges and possible responses on how fiscal can meet climate in a cost-effective way of carefully designed policy packages.