President Biden's Climate Chief Says Carbon Border Adjustment Tariff is Under Consideration
Jul 26, 2021
McCarthy shared this during a Bloomberg Sustainable Business Summit that brought together global business leaders and investors to drive innovation and scale best practices in sustainable business and finance. Businesses have increasingly grown to support a domestic carbon tax-and-dividend to help protect domestic industry.
The carbon border adjustment tax is among several market and regulatory approaches that the White House is considering to help curb greenhouse gas emissions globally.
The goal of a carbon border adjustment would be both to create a level playing field for U.S. companies to compete, while simultaneously encouraging businesses to curb emissions.
The carbon border adjustment would function in large part like a Value Added Tax (VAT) that is commonly used in the European Union and developing countries.
In Washington, DC the tax has the potential to receive bipartisan support as many free-trade Republicans have argued that the Biden administration’s climate policies have benefited Chinese companies while hurting domestic businesses.