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US examines carbon pricing on imports, climate envoy says

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times or enjoy below:

🗞️ Driving the news: The US is considering implementing a carbon pricing system on imports, signaling a key policy shift to combat Chinese industrial competition and reduce emissions
• John Podesta, the US's senior climate diplomat, emphasized the need to address "freeriding" by carbon-intensive foreign producers

🔭 The context: Podesta’s remarks align with the US’s increasing focus on carbon-intensive imports, mirroring the EU’s carbon border adjustment mechanism (CBAM)
• The move is part of broader efforts to protect the US industrial base and ensure that global trade fairly reflects the carbon footprint of goods

🌍 Why it matters for the planet: A carbon pricing system on imports could drive global markets towards cleaner production methods, significantly reducing overall carbon emissions
• It aims to create a fairer trading environment that penalizes high carbon emitters and promotes sustainable practices

⏭️ What's next: The US is reviewing data and policy frameworks to decide on the best approach for carbon pricing on imports, with a bipartisan discussion already underway
• This policy could potentially align with similar international measures to promote global climate action

💬 One quote: "We’re not going to just give up our industrial base to people who are dumping carbon and freeriding on a system that doesn’t account for, and in fact, kind of subsidizes the dumping of high carbon production cost into open markets," said John Podesta

📈 One stat: The Niskanen Center reports that US industry is less carbon-intensive than major emitters like China, India, and Russia, but lags behind the EU

Click for more news covering the latest on carbon market

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