American CBAM proposals – carbon market implications?

While Europe’s implementation of a carbon border adjustment mechanism (CBAM) has garnered attention all over the world and spurred carbon pricing in countries that export products to the bloc, legislators in the US have come up with plans for similar ways to “level the playing field” on trade in emission-intensive goods that - if enacted - could also incentivize new carbon markets or promote use of carbon credits. We take a look at these proposals, which have largely been flying under the radar of carbon market stakeholders.