The recent introduction by the EU of a Carbon Border Adjustment Mechanism – effectively a tariff on imports from countries with higher carbon emission intensities or lower carbon prices – is drawing responses from other countries. In the U.S. Senator Chris Coons and Representative Scott Peters have introduced legislation that includes a “Border Carbon Adjustment” mechanism (BCA) which will be different to the EU’s CBAM but could have a similar effect. Initially the BCA would cover steel, aluminum, cement and energy products and would behave much like an import tariff. While unlikely to p...