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Sen. Whitehouse, Rep. DelBene, & co-sponsors just introduced a revamped Clean Competition Act (CCA). CCA is the most ambitious & meticulously crafted climate policy from this Congress. It lays a marker for what US policy looks like in this era of geopolitical competition. 1/ #climatesky #energysky

Pillar #1: Domestic performance fee CCA applies a performance fee of $60/ton CO2e to U.S. firms that are dirtier than U.S. average. Firms that are cleaner than average face no fee. This creates an incentive for dirtier firms to clean up, and for cleaner firms to stay ahead. 3/

Pillar #2: Carbon import tariff with climate club provisions US decarbonization is of little use if the rest of the world doesn’t also act. To level playing field, CCA imposes a carbon tariff on imports from countries that are dirtier on average than the U.S., at the same $60/ton CO2e rate. 4/

Importantly, CCA waives the US carbon tariff if a trade partner adopts comparable domestic climate policy. This is crucial, as it lays the groundwork for a US-led global climate club: a trade agreement that rewards domestic climate action with market access. 5/