Dear Colleague,
We wanted to share a new study that strengthens the case for leveraging America’s carbon advantage.
The U.S. economy is 80% more carbon efficient than the world average. The Council’s previous research detailed how assessing a carbon fee on foreign imports for their emissions would enhance the competitiveness of a range of U.S. sectors.
As a case study, the Council asked the commodity markets intelligence firm CRU International Ltd. to simulate the impact of this policy on the U.S. steel industry.
- America produces steel while emitting less carbon dioxide than most of our major competitors
- A domestic carbon fee and border carbon adjustment (BCA) can increase U.S. steel industry sales by as much as 9%, and profitability by as much as 41%
- Steel imports would decline around 50%
- Imports from the most carbon-intensive countries would drop further, or disappear altogether
- Economic benefits would accrue broadly across the United States
A carbon fee and BCA is the only policy lever that can transform America’s carbon advantage into a competitive advantage. By rewarding U.S. manufacturers for their cleaner operations, this policy can revitalize American industries, grow the economy, create jobs and reduce emissions all at the same time.
We invite you to read the media coverage of the study (links pasted below) and to visit our new website on America’s carbon advantage.
All the best,
The Climate Leadership Council team
