The EU’s New Carbon Border Tax Should Spur the U.S. To Implement Its Own

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WASHINGTON, DC – This week, the European Union reached a tentative agreement on a carbon border adjustment mechanism (CBAM) that would require all goods sold in the EU to include a levy that accounts for their impact on the climate. This would ensure that manufacturers cannot avoid Europe's climate standards by moving their operations outside the region.

A provisional deal would take effect on a trial basis in October 2023 and would cover imports of iron, steel, cement, aluminum, fertilizers, electricity, hydrogen, and downstream products such as screws and bolts.

The Sierra Club sees this development as crucial progress toward a global climate-friendly trade model, and encourages the United States to move forward with a similar mechanism.

In Response, Sierra Club Living Economy Director Hebah Kassem Released the Following Statement: 

“The climate crisis demands bold climate policies in countries across the globe in order to create the more healthy, just, and sustainable world we all want to see. Governments must take strong action, such as establishing clean energy subsidies and more strictly regulating pollution, to get anywhere near our climate goals. A properly designed Carbon Border Adjustment Mechanism can go far toward curbing the outsourcing of materials manufacturing to countries where production causes far more climate pollution.

“As the EU takes this significant step, we strongly urge the U.S. to mirror this action by implementing a CBAM on embodied carbon in imported goods. The U.S. should be a leader in elevating climate standards and environmental justice while reducing carbon pollution worldwide.”

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About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.