HR 6787

The Clean Competition Act proposes a carbon border adjustment mechanism within the Internal Revenue Code. It establishes a ‘carbon intensity charge’ on imported goods, based on the carbon emissions associated with their production and the carbon intensity of the producing country’s economy. Domestic producers would also face a similar charge. The bill aims to incentivize lower carbon emissions globally by making imports from high-carbon countries more expensive. It also includes provisions for carbon clubs and reporting requirements to track and assess carbon emissions.