Developments in Border Carbon Adjustments in the 119th Congress and Abroad
2 minute read
There has been a surge in interest in the relationship between international trade and climate policy since the implementation of the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM). The EU CBAM has occupied the center of discourse in climate and trade policy, driving expanded interest in developing national carbon pricing policies. As more countries implement carbon pricing policies, accompanying border carbon adjustments (BCAs) are similarly increasing in prominence, driven by the desire to decarbonize and to preserve the competitiveness of emissions intensive, trade exposed (EITE) industries. BCAs facilitate national climate action, allowing implementing countries to take more ambitious steps to decarbonize their heavy industries while preventing carbon leakage—in other words, the undercutting of domestic industry by international competitors not subject to a similarly stringent carbon pricing policy.
The climate and trade policy landscape continues to evolve as more countries take action to align their trade policies with their climate objectives. BCAs occupy a central position in these conversations. This factsheet examines and compares the structure of existing and proposed BCAs, beginning with international policy developments before turning to the range of relevant U.S. legislative proposals.
This factsheet summarizes and compares BCA-related international policy developments and proposals introduced in the 119th Congress (2025–26).
