A Carbon Border Adjustment Mechanism (CBAM) allows a country to impose a price on carbon emitted during the production of goods in the country of origin as import fees, thus incentivizing greener manufacturing. This has been a perennial aspiration of environmentalists for decades that once languished in obscurity but is now rapidly becoming policy. Now, this step forward in climate policy may be legislated with bipartisan support in the US Congress, with far-reaching implications not just for the environment but the international economy.

The European Union (EU) has started the process, recently reaching a provisional agreement for a CBAM. Following a three-year transition period, Europe expects to begin the first truncheon of charges. Senator Bill Cassidy (R-LA)’s proposal for an American CBAM echoes the calls of Democratic Senators including Brian Schatz (D-HI), Sheldon Whitehouse (D-RI), and Martin Heinrich (D-NM). The question is whether sufficient bipartisan support will exist to import the CBAM to America.