When we tally a country’s carbon emissions, we typically consider only those emissions generated within its borders. But this approach misses an important dynamic in the global economy: while emissions in developed countries are generally holding flat or declining, this progress is undercut by higher emissions from less efficient countries. Yet those higher emissions...
Over the past two years, U.S. lawmakers have expressed growing interest in border carbon adjustments (BCA), pollution import fees, and new trade deals to charge products based on carbon intensity. Abroad, the EU voted to approve its own Carbon Border Adjustment Mechanism, or CBAM, and other countries like the UK, Canada, and Japan are exploring their own policies. As...