Democrats look to revive carbon border fee talks

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🗞️ Driving the news: US Congressional Democrats are pushing to revive discussions on implementing a carbon border adjustment mechanism (CBAM), a proposed legislation that would tax imports and exports based on their carbon emissions
• The “Clean Competition Act,” reintroduced by Sen. Sheldon Whitehouse and Rep. Suzan DelBene, aims to make global and domestic polluters pay for their carbon emissions

🔭 The context: As Europe prepares to implement its own carbon border fee, the U.S. bill seeks to address climate concerns by holding polluters accountable
• However, with the Republican-led Congress, the proposal faces significant hurdles
• It may struggle to gain support

📈 One stat: The bill would charge pollution-intensive imports and exports based on carbon emissions, pushing forward the idea of aligning international trade with climate goals

🌍 Why it matters for the planet: A carbon border adjustment fee could play a crucial role in reducing global emissions by incentivizing cleaner production practices and addressing the carbon footprint of imports
• It also aligns the U.S. with global efforts to regulate emissions and protect domestic industries from unfair competition due to lax environmental standards elsewhere

⏭️ What’s next: The likelihood of passing the bill in the current political climate seems low, but its reintroduction signals continued efforts by Democrats to integrate climate action into U.S. trade policy

💬 One quote: "This bill will tax pollution-intensive imports and exports, ensuring that those who pollute pay for the damage they cause," — Sen. Sheldon Whitehouse on the renewed push for the CBAM

📈 One stat: Over half of businesses expect to moderately or significantly increase engagement with carbon markets by 2030, signaling growing interest in carbon credits

See on illuminem's Data Hub™ the sustainability performance — carbon credit purchases, total emissions, and climate targets of thousands of companies

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