Corporate strategies for utilizing border carbon adjustments to promote deeper carbon reduction amidst the complex Interplay of business and climate competitiveness
News Article: Large Corporations in BASIC Countries Adopting Proactive Decarbonization Strategies
In response to the growing carbon pricing and border carbon adjustment (BCA) policies, large corporations in China, India, Brazil, and South Africa are adopting a multifaceted approach to decarbonization. This shift is being studied by Climate Finance Asia (CF Asia), a mission-driven business that focuses on tackling the climate challenge through sustainable finance tools.
The study, titled "Navigating the Climate-Competitiveness Nexus: Corporate Strategies to Leverage Border Carbon Adjustments for Deep Decarbonisation", is a collaboration between CF Asia and the World Economic Forum. The study aims to contribute to a more informed dialogue on how unilateral approaches like BCAs can evolve toward greater interoperability and multilateral alignment.
Key strategies being employed by these corporations include leveraging border carbon adjustments, investing in clean technologies and energy efficiency, aligning with national climate finance platforms and policies, long-term energy transition planning, and enhancing supply chain and operational resilience.
For instance, corporations are evaluating how to optimize compliance and competitiveness under emerging BCA frameworks like the European Union’s Carbon Border Adjustment Mechanism. They are also increasing investments in renewable energy and energy-efficient technologies to lower emissions and anticipate stricter carbon pricing measures.
In addition, companies are engaging with government-backed initiatives like the Brazil Climate and Ecological Transformation Investment Platform and mobilizing international climate finance to fund low-carbon projects and innovation. This reduces transition risks and attracts foreign private capital.
The study will focus on high-emission sectors such as steel, cement, energy, and chemicals, and will include five corporate case studies from BASIC countries. These case studies will be informed by interviews and focus group discussions with C-suite executives.
The final White Paper offering strategies for companies to navigate compliance, competitiveness, and decarbonisation in a fragmented carbon pricing and border carbon adjustment landscape will be published in late 2025. The paper will be launched publicly and disseminated via the World Economic Forum's global network.
Alan To, CEO of Climate Finance Asia, stated that the goal of the collaboration is to help companies identify practical strategies to align climate ambition with business resilience, especially in sectors most exposed to carbon-related trade measures.
CF Asia, which operates in various regions including China, India, and Hong Kong, delivers high-quality advisory services on sustainable finance in the region. The team at CF Asia consists of experienced environmental and social development professionals across Asia.
Project updates and engagement opportunities will be shared through CF Asia's website and LinkedIn. The study is part of the World Economic Forum's Climate Finance Innovation workstream, under its Centre for Nature and Climate. The collaboration between CF Asia and the World Economic Forum was previously announced, with regional workshops planned, including one during Hong Kong Green Week (September 2025). A White Paper is expected to be published in late 2025.
[1] European Commission. (2021). Carbon Border Adjustment Mechanism. https://ec.europa.eu/clima/policies/ets/cbam_en [2] Brazil Climate and Ecological Transformation Investment Platform. https://www.infraestrutura.gov.br/en/investment-platform/ [3] World Economic Forum. (2021). Green Supply Chain. https://www.weforum.org/agenda/2021/04/green-supply-chain-sustainable-supply-chain-management/ [4] International Renewable Energy Agency (IRENA). (2021). Renewable Energy Investment Trends in 2020. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2021/Mar/IRENA_RE_Investment_Trends_2020.pdf [5] Just Energy Transition Partnership. (2021). South Africa. https://www.justenergypartnership.org/countries/south-africa/
- Climate Finance Asia (CF Asia), in collaboration with the World Economic Forum, is investigating the decarbonization strategies adopted by large corporations in BASIC countries, focusing on the impact of border carbon adjustments (BCAs) and climate-change policies.
- In their study, titled "Navigating the Climate-Competitiveness Nexus: Corporate Strategies to Leverage Border Carbon Adjustments for Deep Decarbonization," they aim to provide insights into how decarbonization can be achieved while ensuring business competitiveness.
- Key strategies highlighted in the study include leveraging border carbon adjustments, investing in clean technologies, aligning with national climate finance platforms, long-term energy transition planning, and enhancing supply chain and operational resilience.
- Companies are also engaging with government-backed initiatives like the Brazil Climate and Ecological Transformation Investment Platform and mobilizing international climate finance for low-carbon projects and innovation.
- The study will focus on high-emission sectors such as steel, cement, energy, and chemicals, and will publish a final White Paper offering strategies for companies to navigate compliance, competitiveness, and decarbonization in a fragmented carbon pricing and border carbon adjustment landscape in late 2025.
