Reproduced from Energy Institute at HAAS; Chart: Axios Visuals

A new working paper finds that trade barriers worldwide are generally lower for carbon-intensive goods than cleaner products, creating a large "implicit subsidy to CO2 emissions."

Why it matters: UC Berkeley economist Joseph Shapiro pegs this "subsidy" at $550 billion to $800 billion annually, making it harder to fight climate change.

How it works: The paper explores tariffs (shown above) and other import penalties on a vast array of goods.

  • Penalties are generally lower on "dirtier" sectors — think metals and petrochemicals for instance — used as manufacturing inputs for consumer goods.
  • Shapiro concludes that ending the trade restriction imbalance between "dirty" and "clean" industries would help curb emissions.

The bottom line: "The resulting change in global CO2 emissions has similar magnitude to the estimated effects of some of the world’s largest actual or proposed climate change policies," Shapiro writes.

Why you'll hear about this again: The EU is planning "carbon border adjustments" to keep domestic industries from being undercut by competitors in nations without climate policies.

  • Plus, White House hopeful Joe Biden's platform vows "fees or quotas on carbon-intensive goods from countries that are failing to meet their climate and environmental obligations."

Go deeper

Filibuster and Obama fossil fuel ties could slow Biden's climate ambitions

Photo: Mark Makela/Getty Images

Two new stories, taken together, highlight the political push-pull around Joe Biden's climate and energy plans.

Driving the news: Bloomberg reported on Wednesday that some left activists "want Biden to distance himself from former Obama administration advisers they view as either too moderate or too cozy with the fossil fuel industry."

Updated 46 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 20,092,855 — Total deaths: 736,254 Total recoveries — 12,350,879Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 5,094,565 — Total deaths: 163,465 — Total recoveries: 1,670,755 — Total tests: 62,513,174Map.
  3. Politics: Trump claims he would have not called for Obama to resign over 160,000 virus deathsHouse will not hold votes until Sept. 14 unless stimulus deal is reached.
  4. Business: Richer Americans are more comfortable eating out.
  5. Public health: 5 states set single-day coronavirus case records last week — A dual coronavirus and flu threat is set to deliver a winter from hell.
  6. Sports: The cost of kids losing gym class — College football is on the brink.
  7. World: Europe's CDC recommends new restrictions amid "true resurgence in cases."
Updated 4 hours ago - Politics & Policy

Trump whisked out of press briefing after shooting outside White House

President Trump was escorted out of a coronavirus press briefing by a Secret Service agent on Monday evening after law enforcement reportedly shot an armed suspect outside of the White House.

What's new: The 51-year-old suspect approached a uniformed Secret Service officer on the corner of 17th Street and Pennsylvania Avenue NW, near the White House, and said he had a weapon, the agency alleged in a statement late Monday. He "ran aggressively towards the officer, and in a drawing motion, withdrew the object from his clothing."