IETA LIVE Carbon Markets - Climate Coalitions, Carbon Pricing, and Trade: Implications for Industry

The Global Climate Policy Project (GCPP) at Harvard and MIT will present modeling results from its flagship report Building a Climate Coalition: Aligning Carbon Pricing, Trade, and Development, examining how emerging carbon pricing regimes and border carbon adjustments may reshape the global competitive landscape for energy-intensive industries.
With the EU’s Carbon Border Adjustment Mechanism (CBAM) entering its implementation phase in January 2026, governments and companies face increasing pressure to navigate the growing interaction between climate policy and international trade. The session will focus on the potential role of coordinated carbon pricing in reducing policy fragmentation, limiting carbon leakage, and providing clearer investment signals for low-carbon industrial production. Drawing on the report’s economic modeling and analysis of institutional frameworks, the presentation will assess how a climate coalition centered on coordinated carbon pricing and trade measures could affect emissions reductions, fiscal revenues, and industrial competitiveness in key sectors such as steel, cement, aluminum, and fertilizers.
The session will invite discussion with industry participants on how coordinated approaches to carbon pricing and trade measures could shape global markets for low-carbon materials, influence investment decisions, and help create a more predictable international policy environment for the next phase of industrial decarbonization.