Democrats propose tax on imports from countries without climate laws

 Two influential Democratic lawmakers are proposing to introduce bicameral legislation to impose a tax on imports from countries like China and many others

Two influential Democratic lawmakers are proposing to introduce bicameral legislation to impose a tax on imports from countries like China and many others who are not taking significant steps to address the challenge posed by climate change.

The FAIR Transition and Competition Act of 2021, which is also sponsored by Senator Chris Coons and Congressman Scott Peters, proposes to establish a border carbon adjustment (BCA) on polluting imports.

It will establish a border carbon adjustment on carbon-intensive imports to account for the cost incurred by US businesses to comply with laws and regulations limiting greenhouse gas emissions.

The two lawmakers said the border carbon adjustment will raise billions of dollars to support communities as they adapt to increasingly severe weather events and invest in new technologies to eliminate greenhouse gas emissions.

According to the bill, the list of goods covered by the tariff will expand as the United States improves processes for determining the carbon intensity of different types of goods.

The FAIR Transition and Competition Act will facilitate a race to the top among US companies to produce the next generation of clean energy and technology. The move would ensure we remain a key player in international cooperation on climate action and show the world that the US is fully committed to addressing the climate crisis at home and abroad, Peters said.