Border Carbon Adjustment Mechanisms (BCAMs) are becoming reality in the EU and elsewhere, and recur—in very different form—in U.S. legislative proposals. But they remain contentious, with features and differences that leave the underlying welfare rationale and implications unclear. Exploring...

International cooperation on climate change and trade is intensifying, as highlighted by numerous initiatives launched at the multilateral, plurilateral, and bilateral levels. This is an encouraging development, signaling the major role of trade policy in supporting decarbonization efforts and...

To address global warming, the EU introduced the Carbon Border Adjustment Mechanism in 2023, raising concerns about its potential negative effects on GDP and trade volumes in the Global South, including China, India, and African countries. The Border Tax Adjustment (BTA) is perceived as a...