Understanding Border Carbon Adjustments

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Description
This training reviews the basics of border carbon adjustments, how they're viewed constitutionally and in terms of trade legality, and the practical aspects of border carbon adjustment implementation along with its constraints.
Breadcrumb
/topics/carbon-fee-and-dividend
TOC and Guide Section
 
What are the basics?

The Energy Innovation and Carbon Dividend Act has a provision built in to protect trade competitiveness: a ‘Carbon Border Fee Adjustment’ imposed on covered fuels and ‘emissions-intensive trade-exposed’ (EITE) goods that cross our border in either direction. These goods include products like steel, aluminum, cement, glass, and some agricultural products.

Goods that fall under this EITE classification and are imported from a country that does not have a carbon price equivalent to ours will have to pay a surcharge to make up the difference. Conversely, an American-made EITE product exported to such a country will get a refund for the carbon fee associated with its carbon footprint.

This border adjustment prevents the carbon fee from putting American businesses at a competitive disadvantage in global markets.  It will also remove the incentive for them to relocate overseas to avoid the carbon fee. In addition, it will encourage foreign countries to adopt their own carbon fee so they would get the money instead of us.

How does this interact with the WTO?

The carbon border fee adjustment is also specifically designed to comply with international trade law

For more information, check out the slides and recording for the training under the "Watch" tab.

Length
Press play to start the video (42m 59s)
Video Outline
To skip ahead to a specific section go to the time indicated in parenthesis.

Intro & Agenda
(from beginning)

Context of International Trade
(2:13)

History of Trade Treaties
(5:59)

Interpreting Tariffs & Resolving Disputes
(9:50)

Adjustment Design For Fossil Fuels & Carbon Intensive Goods
(20:48)

Global Diplomacy Considerations
(30:30)

Final Thoughts & Takeaways
(39:20)
 

Instructor(s)
Dr. Ross Astoria
Downloads

Download PowerPoint or Google Slides presentation.

Download the Presentation
Introduction to Border Carbon AdjustmentsIntroduction to Border Carbon AdjustmentsPowerpoint Presentation16440 KB
Audio length
Press play to start the audio (42m 59s)
Audio embed code
Audio Outline
To skip ahead to a specific section go to the time indicated in parenthesis.

Intro & Agenda
(from beginning)

Context of International Trade
(2:13)

History of Trade Treaties
(5:59)

Interpreting Tariffs & Resolving Disputes
(9:50)

Adjustment Design For Fossil Fuels & Carbon Intensive Goods
(20:48)

Global Diplomacy Considerations
(30:30)

Final Thoughts & Takeaways
(39:20)
​​​

Instructor(s)
Dr. Ross Astoria
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Category
Training
Topics
Climate Policy
Format
Audio / Video, Presentation
File Type
Google Slides, PowerPoint (.pptx)