In a display of bipartisan cooperation, US senators Kevin Cramer and Chris Coons have put forth the PROVE IT Act, a bill designed to provide evidence that domestically produced oil, natural gas, steel, and other commodities have a smaller carbon footprint compared to imported goods. By collecting emissions data and highlighting the lower greenhouse gas emissions associated with US production, the senators aim to shape trade policy in favor of domestic industries.Dubbed the PROVE IT Act, the proposed legislation seeks to hold nations like China accountable for their emissions-heavy production practices, particularly in industries such as steel. According to Coons, the bill aims to prevent unjust penalties on US companies while drawing attention to countries that exploit lax environmental standards to offer goods at lower costs.Under the bill, the US Energy Department would be given a two-year timeframe to gather emissions data across 22 categories of goods, including refined products, petrochemicals, plastics, biofuels, steel and more. This data would cover both domestically produced goods and those from major exporters, with regular updates every five years.The introduction of the PROVE IT Act coincides with the European Union's plans to implement a carbon border adjustment tariff in 2024 to discourage offshoring of production. The US, seeking to avoid this tariff, argues that its goods have comparable carbon footprints to those from the EU. By collecting comprehensive emissions data, the US hopes to present a strong case for fair treatment in international trade.In a related effort, another bipartisan coalition in the Senate and the House of Representatives has released legislation to protect US steel and aluminum producers from unfair trade practices. This measure aims to make it more challenging for countries to evade anti-dumping duties by relocating production and grants the US Commerce Department increased authority to impose such duties.
In a display of bipartisan cooperation, US senators Kevin Cramer and Chris Coons have put forth the PROVE IT Act, a bill designed to provide evidence that domestically produced oil, natural gas, steel, and other commodities have a smaller carbon footprint compared to imported goods. By collecting emissions data and highlighting the lower greenhouse gas emissions associated with US production, the senators aim to shape trade policy in favor of domestic industries.Dubbed the PROVE IT Act, the proposed legislation seeks to hold nations like China accountable for their emissions-heavy production practices, particularly in industries such as steel. According to Coons, the bill aims to prevent unjust penalties on US companies while drawing attention to countries that exploit lax environmental standards to offer goods at lower costs.Under the bill, the US Energy Department would be given a two-year timeframe to gather emissions data across 22 categories of goods, including refined products, petrochemicals, plastics, biofuels, steel and more. This data would cover both domestically produced goods and those from major exporters, with regular updates every five years.The introduction of the PROVE IT Act coincides with the European Union's plans to implement a carbon border adjustment tariff in 2024 to discourage offshoring of production. The US, seeking to avoid this tariff, argues that its goods have comparable carbon footprints to those from the EU. By collecting comprehensive emissions data, the US hopes to present a strong case for fair treatment in international trade.In a related effort, another bipartisan coalition in the Senate and the House of Representatives has released legislation to protect US steel and aluminum producers from unfair trade practices. This measure aims to make it more challenging for countries to evade anti-dumping duties by relocating production and grants the US Commerce Department increased authority to impose such duties.
