The Washington, D.C.-based Center for Strategic and International Studies recently issued an excellent report on “Crafting a Robust U.S. Carbon Border Adjustment Mechanism.” It's noteworthy not only for its rich content but for its source. CSIS is one of the country's leading conservative think tanks, and its report is strongly supportive of national carbon pricing.
The report states, “A potential U.S. CBAM can serve as a vital tool in the nation’s efforts to transition toward a net-zero economy by encouraging domestic industries to reduce their carbon footprint and incentivizing trading partners to adopt more sustainable practices. Moreover, the design and implementation of a U.S. CBAM can foster international cooperation and harmonization of carbon pricing policies, facilitating a level playing field for domestic industries while promoting environmental sustainability on a global scale.”
The report praises the PROVE-IT Act and, more surprisingly, the Energy Innovation and Carbon Dividend Act. It says of EICDA, “The bill takes a bold step in pricing carbon emissions and proposes a mechanism for revenue recycling, thereby positioning itself as a sector-specific CBAM aimed at fostering climate-friendly investment, penalizing polluters, and channeling payouts to U.S. citizens.”
Don't expect Republicans in Congress to see the light after reading this report. Many of them have little in common with the traditional intellectual conservatives who inhabit CSIS. But this report is well worth checking out and shows that carbon pricing remains a live topic of debate in Washington.
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