Companies in BASIC nations are turning carbon rules into an advantage: Report 

The report finds that MNCs with global supply chains are putting measures ahead of the wave of trade rules 

Emissions-heavy companies in Brazil, South Africa, India, and China (BASIC) countries are treating Border Carbon Adjustment (BCA) rules as a business opportunity, according to a new report. The report by Climate Finance Asia and the World Economic Forum (WEF) titled “Climate and Competitiveness: Border Carbon Adjustments in Action” said these companies will use these rules to modernise and stay competitive in carbon-regulated markets, like the European Union (EU).

The EU’s CBAM is set to be effective from January 1, 2026. CBAM is a regulation that is going to put a carbon price on imports of certain energy-intensive goods like steel, cement, aluminium, electricity, fertilisers, and hydrogen to match the carbon cost of domestic EU products. 

The report found that these multinational companies are already taking action. They have taken steps to meet new carbon rules and position themselves in a way that will be in their advantage before the regulation takes effect. 

Corporate Shift is Already Underway

The report said these companies are improving their carbon-reporting system used to measure, track, and report their greenhouse gas emissions, increasing transparency across their supply chains, and are investing in low-carbon technology. 

These companies, according to the report, are using internal “shadow carbon pricing” which means that they are placing a cost on each ton of carbon emission it is generating to account for the financial risk that the company will incur. 

Alan To, CEO of Climate Finance Asia, said, “BCAs have not triggered broad competitiveness losses yet. Instead, they are creating a new strategic divide. A first-mover advantage is emerging for companies that act now.”

PACE Framework: Guide for Corporations

The report also provided corporations with a clear roadmap to respond to the upcoming carbon policies. They introduced a PACE framework to help senior leaders and supply chain teams. 

According to the report, the PACE framework focuses on four key actions: Planning for carbon-related regulations, achieving domestic and international compliance, changing operations to reduce carbon emissions, and engaging stakeholders across the value chain.

About The Author

Editorial Team

A team of handpicked and dedicated writers committed to fact check each climate-related statement. Go to the roots and intent of each policy implemented, internationally and at home to help you understand climate better

See author's posts