Carbon Border Adjustments: A Legal Tool for Mitigation or a Barrier to Justice?

Abstract

For the past two decades scholars and policymakers have argued that carbon border adjustments (cbas) may remove the risk of carbon leakage. This article examines two of the legal and moral issues relevant to cbas to better understand how cbas may be implemented to support climate change mitigation goals. World Trade Organization compliance represents a conundrum for policymakers. Although a cba may prove meaningful for greenhouse gas emission reduction, it could also lead to trade tensions if viewed as a disguised restriction on international trade. The impact of cbas on Global South nations also presents a concern in terms of fairness and climate justice. In this respect, in addition to undesirable economic impacts, it is increasingly accepted that support must be provided to least-developed countries in order to achieve global net-zero emission targets. cbas do not necessarily provide this. Ultimately, there are pathways forward to ensure that trade tensions are minimized and fairness and equity are achieved in implementing cbas. As action on climate change mitigation is urgent, this pathway forward must be carefully but rapidly navigated.