Illustration: Annelise Capossela/Axios
Sen. Sheldon Whitehouse has reintroduced a carbon tariff bill that he hopes will add another plank to the bipartisan discussion on the Hill.
Why it matters: The Democratic counterproposal to Sen. Bill Cassidy's "Foreign Pollution Fee" comes as lawmakers from both parties are increasingly wary of Europe's carbon border adjustment.
Driving the news: Whitehouse first floated his bill back in 2022, but this time he's got House cosponsors, led by Rep. Suzan DelBene.
- It proposes an import tax on energy-intensive goods — including fossil fuels and industrial products — paired with a domestic carbon tax assessed only on the heaviest greenhouse gas polluters.
- The proceeds would go into a decarbonization grant program modeled after EPA's Diesel Emissions Reduction Act program.
- This year's version of the bill also includes a provision to encourage international "carbon clubs" and exempt companies who pay a carbon tax elsewhere from paying the U.S. border fee.
💠Our thought bubble: Republicans won't support the domestic carbon tax element of this bill, but it's a proposal worth watching if Congress can figure out how to move carbon tariffs forward.
