Press Releases

Today, Congresswoman Suzan DelBene (WA-01) and Senate Environment and Public Works Ranking Member Sheldon Whitehouse (RI) reintroduced the Clean Competition Act, legislation to make American companies more competitive in the global marketplace and cut planet-warming greenhouse gas emissions with a carbon border adjustment. 

On average, U.S. manufacturers are over 50 percent less carbon-intensive than manufacturers in the rest of the world.  Chinese manufacturers are more than three times as carbon-intensive as American ones, and India’s are more than four times as carbon-intensive.

The Clean Competition Act would create a U.S. carbon border adjustment linked to a new domestic industrial performance standard. Importing foreign producers or domestic manufacturers that exceeded the standard would be required to pay a charge for any emissions over the standard. The levy would begin at $60 per ton and increase by six percent above inflation per year. 

The bill would cover the imports and domestic manufacturing of energy-intensive industries, including fossil fuels, refined petroleum products, petrochemicals, fertilizer, hydrogen, adipic acid, cement, iron and steel, aluminum, glass, pulp and paper, and ethanol.  In 2028, coverage would begin expanding to more complex downstream goods.

The president would be able to negotiate carbon clubs to drive down global greenhouse gas emissions and expand markets for low-carbon industrial goods. In exchange, countries would be able to receive a reduction in foreign carbon intensity charges and first preference for the bill’s foreign assistance funding.

“For too long, American industries producing goods in a less carbon-intensive way have been undercut by foreign competitors with dirtier production processes. Washington saw this firsthand with the closure of the Intalco aluminum smelter due to Chinese overproduction, resulting in the loss of over 700 good-paying union jobs. We can address the climate crisis while defending American industries with the Clean Competition Act,” said DelBene. “A fee on high-carbon producers would incentivize industries around the world to prioritize decarbonization and create a level playing field for American workers in these sectors.”

“American manufacturers are already among the cleanest in the world, yet they face unfair competition from countries that do nothing to curb their pollution.  The free-to-pollute business model is economically disastrous and environmentally dangerous,” said Whitehouse.  “The carbon border adjustment is the world’s last lifeboat to climate safety, and other nations are moving fast: the EU’s carbon border adjustment mechanism begins in January, and the UK and Australia look poised to join them.  If we don’t act now, American manufacturers will have to pay fees abroad without any protection at home.  The Clean Competition Act buys us entry into this emerging coalition of allies and ensures that foreign competitors who pollute more pay more.” 

The House bill is co-led by Representatives Ami Bera, MD (CA-06), Don Beyer (VA-08), Kathy Castor (FL-14), and co-sponsored by Representatives Jimmy Panetta (CA-19) and Judy Chu (CA-28).  The Senate bill is co-sponsored by Senators Richard Blumenthal (CT), Martin Heinrich (NM), Brian Schatz (HI), Chris Van Hollen (MD), and Peter Welch (VT). ,

It is endorsed by C2ES, Carbon180, Center for American Progress Action Fund, Ceres, Citizens’ Climate Lobby, Environmental Defense Fund, Foreign Policy for America, National Wildlife Federation, and Sierra Club.

Text of the bill is available here.  A section-by-section is available here. A one-pager is available here.