[CTC] Finance Committee drafting carbon border adjustment measure

[Arthur Stamoulis]

Finance Committee drafting carbon border adjustment measure 
8/12/2021, Inside US Trade
 
The Finance Committee is developing a new carbon border adjustment measure for inclusion in the $3.5 trillion reconciliation package, but one that differs from a proposal offered last month by Sen. Chris Coons (D-DE), a committee aide told Inside U.S. Trade on Thursday.

The disclosure comes after Senate Majority Leader Chuck Schumer (D-NY) and Budget Chair Bernie Sanders (I-VT) instructed the Finance Committee to consider a “carbon polluter import fee” as an offset in the spending bill.

Coons introduced a bill <https://insidetrade.com/node/171795> in July that would create a border adjustment, which some Democrats wanted included in the reconciliation package. A carbon border tax would take into account the emissions used in the production of a good as well as other countries’ environmental regulations and impose a fee based on the import’s environmental impact.

A Coons aide told Inside U.S. Trade that the senator’s bill could provide legislative text for the reconciliation bill, despite not being explicitly referenced. Coons’ office is unaware of any other proposed legislation that include carbon border adjustment measures.

Senate Finance member Chuck Grassley (R-IA) has said that he doesn’t see the “advantage <https://insidetrade.com/node/171082>” of implementing a border adjustment and opposes Coons’ bill. Analysts have questioned how a carbon border adjustment measure, specifically the one being developed by the European Union, could be compliant with World Trade Organization rules. A group of Republicans this week urged the Biden administration to work with the EU <https://insidetrade.com/node/171968> to prevent its carbon border adjustment measure from being implemented.

Schumer and Sanders gave committees until Sept. 15 to submit proposals for the reconciliation legislation.

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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