US keeps wary eye on EU carbon border tax plans
(Clean Energy Wire, 23 Mar 2020) The United States administration, politicians and industry warily watch European Union debates on introducing a carbon border adjustment mechanism, which would put a CO₂ price on goods imported to the EU to reduce the risk of carbon leakage.
Such a scheme risks intensifying trade disputes between the two continents and further weakening transatlantic relations. US government officials wonder why their country should be penalised for not having a carbon price when they are reducing greenhouse gas emissions through other measures. As the European Commission continues to quietly evaluate possible ways for what is often called a carbon border tax, the debate is getting a lot of attention in the US capital, say policy experts.
US energy officials are concerned about the European Commission’s discussions about the introduction of a carbon border tax, which would penalise imports from countries that don’t meet the same emissions standards as domestically produced goods. The debate is also getting a lot of attention among legislators, industry representatives and researchers in Washington, D.C., the nation’s capital.