Thank you for the question.
I agree with Mr. Bernstein that the issue of leakage and competitiveness is one that has to be taken seriously. You don't want to be driving emissions reductions through production shifts to other jurisdictions with your policy.
Border adjustments are one solution. The existing system, the output-based pricing system, is also designed to address this problem. It creates an incentive to reduce emissions by improving the emissions intensity of production rather than by decreasing production. Fine-tuning that system and using it as an instrument still remain an option. It can complement border carbon adjustments, but they can also trade off between the two of them. If you were to shift to border carbon adjustments, that would allow you to raise the emissions intensity benchmarks in the output-based pricing systems.