Pathway 2.

Cross-Cutting Approaches to Reducing Emissions → International Trade

2.7.5 Border Tax Adjustments

LPDD Recommendation: “Congress should use carbon-based border tax adjustments to address leakage concerns as part of a broad climate change policy that may include a cap-and-trade scheme. Congress should include border tax adjustments that comply with GATT Articles I and III and the Agreement on Subsidies and Countervailing Measures in a comprehensive carbon tax or other broad climate change policy.”

LPDD Recommendation: “Congress should avoid unilateral measures that distinguish between domestic goods and services from ‘like’ imports unless they can show that these goods and services are not competitively substitutable.”

12 Resources Found, Displaying 1 thru 10

Proposed Foreign Pollution Fee Act

Jurisdiction: Congress

A fee on imports of certain industrial and manufacturing goods would increase as the difference in embodied pollution widens between a foreign country's products and U.S. counterparts.

RFF Report, Policy Guidance for US GHG Tax Legislation and Regulation: Border Tax Adjustments for Products of Energy-Intensive, Trade-Exposed and Other Industries

Jurisdiction: Federal Agencies and Departments

Describes how border adjustments set up around a greenhouse gas tax and an appropriately designed greenhouse gas index can be framed in a fashion analogous to value added taxes (VAT) that are allowed under WTO rules.

EU Carbon Border Adjustment Mechanism

Jurisdiction: Foreign

Importers will need to declare each year the quantity of goods imported into the EU in the preceding year and their embedded GHG. They will then surrender the corresponding number of CBAM certificates.

Global Ecolabelling Network

Jurisdiction: Foreign

Supports the development of third-party certified ecolabelling systems, such as ISO 14024, while also supporting other types of self-declaration and voluntary programs.

California ETS Border Carbon Adjustment

Jurisdiction: State Legislatures

California’s emissions trading system requires carbon border adjustments for imports of electricity from jurisdictions without a carbon trading framework.

Proposed American Clean Energy and Security Act of 2009

Jurisdiction: Congress

Would have included a form of border carbon adjustment at Section 401 of Part IV of the bill.

Report, Greenprint

Jurisdiction: Congress

Models the impacts of four different carbon border adjustment policy scenarios.

Report, Optimal environmental border adjustments under the General Agreement on Tariffs and Trade

Jurisdiction: Congress

Arguing that border adjustments should be priced under the domestic carbon price in order to avoid shifting consumption of goods to unregulated markets.

Report, Framework Proposal for a US Upstream Greenhouse Gas Tax with WTO-Compliant Border Adjustments

Jurisdiction: Congress

Proposes a framework for a US climate policy with border adjustments based on an upstream tax on GHG emissions with rebates for exports and charges on imports for products from energy-intensive, trade-exposed industries.

Report, Designing Border Carbon Adjustments for Enhanced Climate Action

Jurisdiction: Congress

Reviews past border carbon adjustment proposals and offers design principals and recommendations on questions of product coverage, sectoral coverage, adjustment levels, and revenues usage.