Border Carbon Adjustment Bill Proposed in US
Following a move by the EU, US Democrats have unveiled legislation that would levy a fee on imported carbon-intensive goods, including steel. US Senate Climate Solutions Caucus Chair US Senator Mr Chris Coons (D-Del.) and US House Energy and Commerce Committee member US Representative Mr Scott Peters (D-Calif.) have unveiled new legislation to establish a Border Carbon Adjustment on polluting imports. BCA is a trade tool that levels the field for domestic manufacturers by imposing a fee on carbon-intensive products when they reach the border. This will incentivize investments in cleaner technologies and account for the cost of complying with US laws and regulations on greenhouse gas emissions. The BCA will also provide a flexible framework for more ambitious climate policy to come.
Imposing a BCA will protect U.S. jobs, reduce global emissions, and drive resilience in frontline communities.
The FAIR Transition and Competition Act of 2021 will protect U.S. jobs, reduce reliance on foreign energy sources, and drive climate innovation and community resilience domestically by
Recognizing the costs incurred by US companies in producing cleaner products due to emissions-related laws and regulations
Accounting for those costs by levying a fee on imports in carbon-intensive, trade-exposed sectors
Supporting international climate cooperation and the reframing of trade around climate
Directing revenue to the development and commercialization of high-impact emissions reductions technologies
Creating a new Resilient Communities Grant Program for states to support climate adaptation, transition assistance, and the communities facing the most severe impacts of climate change and historic pollution