Where and how goods are made has a huge impact on how much carbon dioxide is released into the atmosphere during their manufacture. Most climate policies around the world have focused on each country reducing the emissions produced within its borders. But the emissions that were released in other countries to produce the goods and services we consume at home are just...
Trade is a mass disseminator of resources, technology, and best practices. And yet, it is the most underdeveloped tool in the climate playbook. Increasingly, policymakers are considering trade policies to harness global market forces that promote climate, economic, and geopolitical objectives. International conversations about implementing shared climate and trade...
Carbon import fees—a price imposed on imported goods based on their carbon intensity, largely targeting energy-intensive and trade-exposed products—are gaining traction as an important element in addressing global climate goals. At least 9 countries—including the European Union (EU) and the United States—have started formal policy processes toward imposing such fees...
Popular Climate and Trade Policy Proposals Expected to Comply with International Agreements WASHINGTON, DC – A first-of-its kind legal analysis released today by the Climate Leadership Council finds that carbon import fees, including proposals currently being explored in the U.S. Congress, are permissible under the rules of the World Trade Organization (WTO). The...
In September, we released the report Carbon Import Fees and the WTO, a first-of-its-kind legal analysis of how different climate and trade policy proposals might fare if challenged by member countries of the World Trade Organization (WTO). These policy mechanisms are being increasingly looked at as a way to address the carbon loophole—the 20-25 percent of global...
This blog post will be updated as more details emerge. Climate and trade policies are gaining momentum across the world, partly due to an increasing awareness of the “carbon loophole” and a growing appreciation for the competitive pressures facing businesses that enjoy a “carbon advantage” over international rivals. One set of tools under consideration would impose a...
Momentum continues to build worldwide for the use of carbon import fees, policies that charge importers for the emissions embedded in traded goods. The World Trade Organization (WTO) Appellate Body has yet to definitively interpret provisions that could determine the legality of carbon import fee approaches. In the absence of guidance, some have voiced reservations...