Carbon Border Adjustment Mechanisms and Climate-Tech Innovation: A Happy Coupling?

Talk of carbon border adjustment mechanisms (CBAMs) is everywhere these days. With the European Union releasing a proposal in July to apply its carbon price to imported products and the United States considering a similar approach, policymakers have renewed their focus on leveling the playing field for domestic energy-intensive manufacturers. But CBAMs pose significant implementation challenges and risks to global trading relationships, international climate agreements, and much needed climate-tech innovation.

ITIF hosted a discussion on a new report and the current state of carbon tariffs, their challenges, and potential multilateral alternatives.