Actionable insights for global CBAM-exposed businesses, with case studies from China, Brazil, India, and South Africa charting a path from compliance to competitiveness
HONG KONG – December 15, 2025 – Leading carbon-intensive companies in BASIC countries are proactively adapting to Border Carbon Adjustment (BCA) mechanisms, aiming to leverage them as a catalyst for technological modernization and competitive positioning in carbon-regulated markets, according to a white paper from Climate Finance Asia and World Economic Forum titled “Climate and Competitiveness: Border Carbon Adjustments in Action”.
With the EU’s Carbon Border Adjustment Mechanism (CBAM) set to begin its definitive regime on January 1, 2026, the white paper provides a timely and critical snapshot of corporate readiness. Through engagements with industry giants in steel, cement, oil and gas, mining sectors and among others, the study finds that multinationals with global supply chains are implementing compliance and strategic positioning measures ahead of the wave of carbon-based trade rules.
The corporate response is already underway: a fundamental technological shift to lower-carbon production, guided by internal “shadow carbon pricing” in capital planning, and a tactical focus on strengthening digital carbon accounting and supply chain transparency to ensure short-term compliance and build operational resilience.
“Our findings are clear: BCAs have not triggered broad competitiveness losses yet,” said Alan To, CEO of Climate Finance Asia. “Instead, they are creating a new strategic divide. A first-mover advantage is emerging for companies that act now.” These leading corporations are leveraging early investments in low-carbon technologies to differentiate their products, command premium pricing, and consolidate market share—effectively turning regulatory pressure into a powerful tool for competition.
The “Climate and Competitiveness” white paper presents a balanced blend of policy review, case studies, and actionable guidance. The paper provides corporations a clear roadmap for strategic transformation, with the PACE framework, a Strategy Playbook for C-suite leaders, supply chain directors, and procurement managers to navigate the carbon policy landscape.
PACE outlines four critical action pillars: Planning for carbon policy administration, Achieving domestic and international compliance, Changing operations to decarbonize, and Engaging stakeholders up and down the value chain. The Strategy Playbook offers industry-specific pathways based on appropriate internal and external actions.
Laia Barbarà, Head of Climate Strategy at the World Economic Forum, said: “Border carbon adjustments are becoming an increasingly significant feature of the global trading system, with real implications for business competitiveness, investment and supply-chain resilience. This paper provides leaders with case studies, insights, and a practical playbook to navigate this shift and to align decarbonization strategies with evolving market expectations to leverage the opportunities that BCAs present.”
The paper “Climate and Competitiveness: Border Carbon Adjustments in Action” is available for download HERE.