Technical Note: Scorecard for Border Carbon/Border Pollution Measures (BCMs/BPMs)

As laws and policies come into focus for Border Carbon Measures (BCMs) and/or Border Pollution Measures (BPMs) at the national level, policymakers, stakeholders, and the public need to weigh the differences between various policy designs and features. Scoring BCM/BPM policies requires a framework that is centered on policy objectives and that considers the technical, legal, and social components that drive policy effectiveness and manage risk. In this paper, we provide such a framework with scoring criteria to appraise BCM/BPM policies, including:

• Inherent capacity to fulfill the primary policy objectives of closing the carbon loophole in international trade and creating global competition for clean manufacturing.
• Customs compatibility.
• Effectiveness, including the ability to facilitate clean commerce, resist circumvention, and be an effective and endurable tool for decarbonization that anticipates changing circumstances on the path to net zero.
• Development focus, including the ability to serve the interests of diverse decarbonization capacities and priorities.
• Legal durability and consistency with respect to international law and obligations.
• Forward-looking nature and readiness for international collaboration and convergence.