<h1>Carbon pricing and CBAMs can drive decarbonisation in hard-to-abate sectors while policy coordination is essential.</h1> The briefing prescribes policy responses to supply chain concentration and emissions pricing: pursue diversified supply chains through targeted nearshoring policies that prioritise employment and value add, WTO consistent trade measures, and climate finance cooperation; and support carbon pricing and carbon border adjustment mechanisms as essential, non protectionist tools to decarbonise hard to abate sectors, alongside international standards, technical assistance, and allocation of CBAM revenues to developing countries.