With Europe’s carbon border adjustment mechanism (CBAM) getting attention all over the world, the fact that the last United States Congress (2023-2024) saw several proposals for similar ways to “level the playing field” on trade in emission-intensive goods flew under the radar of carbon market stakeholders. Having published an explanation of those proposals last year, Veyt takes a look at the only one re-introduced in the current 119th Congress (2025-2026) which is unlikely to go anywhere in terms of becoming law. Since it was introduced by two Republican Senators, however, it sets a precedent for potential bipartisan cooperation on a future CBAM-like bill in a legislature more conducive to cross-party cooperation. Based on carbon intensity data for several goods covered by the proposal, it looks like European producers would be relatively unaffected by the legislation as currently structured.
Veyt specialises in data, analysis, and insights for all significant low-carbon markets and renewable energy.