Launched in February, the Climate Leadership Council’s Center for Climate and Trade explores policies that leverage trade relationships to advance international cooperation and climate ambition. The Center released its first report, the Case for Climate and Trade, at an in-person event in May featuring the Center’s co-chairs and advisors, Rep. Scott Peters (D-CA), and USTR general counsel Greta Peisch. The Center also hosted a virtual conversation with Sen. Kevin Cramer (R-ND) and hired international trade law expert Matt Porterfield in this inaugural year. These developments come amidst increasing and bipartisan calls for a border carbon adjustment (BCA) and international interest in forming a G7 “climate club.”

In September, we expanded our work on America's Carbon Advantage to include analysis of the U.S. carbon advantage in chemicals manufacturing. Senator Bill Cassidy (R-LA) and Tony Will, CEO of CF Industries, joined the Council for a virtual event to discuss the opportunities associated with a U.S. industry that is 10-40% more carbon efficient than the world average. Then, in November, we released Embodied Carbon in Trade: Carbon Loophole, which found nearly one-fourth of global greenhouse gas emissions are associated with internationally traded goods. The throughline in these pieces of research: Market-based incentives can lower global emissions, support the U.S. economy by leveraging our carbon advantage, strengthen U.S. relationships with developing countries, and hold high emitters accountable. 

The Baker Shultz Carbon Dividends Plan has always been integral to the Council’s work. An economywide carbon price is not only the most powerful policy tool unused in our toolbox to drive down emissions, but it also supports innovation and reliable power grids. That’s why, in March, we released Achieving Grid Reliability and Decarbonization through Carbon Pricing to explain how a price on carbon creates the necessary incentives for investing in the infrastructure and technology needed for the reliable, carbon-free grid of the future. Accompanying the launch, we held a virtual event featuring former FERC Chairman Neil Chatterjee, Senator John Hickenlooper (D-CO), and Vistra Corp. then-CEO Curt Morgan.

The Council is proud to collaborate with a diverse group of experts and stakeholders to promote the most cost-effective, equitable and politically viable climate solutions. This year, the Council appreciated the opportunity to speak at events hosted by our friends at the American Iron and Steel Institute, CERAWeek, Climate Bridge Conference, Committee for a Responsible Federal Budget, Conservative Climate Caucus Foundation, Florida State University, National Clean Energy Week, Niskanen Center, North American Gas Forum, RepublicEN, Urban-Brookings Tax Policy Center, and the World Forum on Enterprise and the Environment. It was great to connect with you in 2022! The Council is grateful to be part of a community of committed climate policy practitioners seeking lasting solutions.

By most accounts, the IRA was the most significant climate bill in U.S. history, and yet it’s clear that more work lies head. Here’s what that might look like: In November, Senators Brian Schatz (D-HI), Sheldon Whitehouse (D-RI), and Martin Heinrich (D-NM) wrote an op-ed in TIME Magazine which, among other priorities, called for a BCA. The Senators noted that leveraging the U.S. carbon advantage would boost clean U.S. manufacturers while encouraging emissions reductions abroad, which Council research has repeatedly shown to be true. Also in November, the Council and Americans for Carbon Dividends released polling indicating that Republican voters support policies like a BCA that reward efficient U.S. businesses, hold high emitters accountable, and reduce global emissions. Economists already agree that the U.S. climate strategy should increasingly focus on market incentives. Now support is growing in Congress and among the public. We were honored to serve as a resource to lawmakers on both sides of the political aisle, allied organizations, and other policy experts in 2022, and we are energized as we gear up for more progress in 2023.