Legislative update: Proposal for border carbon adjustment tariff

The “Fair, Affordable, Innovative, and Resilient (FAIR) Transition and Competition Act”

The “Fair, Affordable, Innovative, and Resilient (FAIR) Transition and Competition Act”

U.S. Senator Chris Coons (D-DE) and Representative Scott Peters (D-CA) unveiled a bill—the “Fair, Affordable, Innovative, and Resilient (FAIR) Transition and Competition Act”—that would establish a border carbon adjustment tariff on polluting imports and introduce a polluter import fee.

Read text of the bill [PDF 52 KB]

According to a one-page description [PDF 180 KB], the legislation would:

  • Recognize the costs incurred by U.S. companies in producing cleaner products due to emissions-related laws and regulations
  • Account for those costs by levying a fee on imports in carbon-intensive, trade-exposed sectors
  • Support international climate cooperation and the reframing of trade around climate
  • Direct revenue to the development and commercialization of high-impact emissions reductions technologies
  • Create a new resilient communities grant program for states to support climate adaptation, transition assistance, and communities facing the most severe implications of climate change and pollution


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