A New U.S. Carbon Tax Proposal: The 2025 Clean Competition Act

The Clean Competition Act (CCA) has been reintroduced, signaling U.S. intent to align industrial competitiveness with carbon accountability. The bill proposes a border-adjusted carbon charge for high-emission sectors—steel, aluminum, cement, chemicals—starting at $60 per ton of CO₂, to be increased at a 6-percent real growth rate annually. Charges apply equally to imports to prevent carbon leakage, while revenues (estimated $100B in 10 years) would fund domestic decarbonization and support cleaner manufacturing abroad. Although the CCA is unlikely to become law any time soon, it provides a meaningful framework for a U.S. legislative approach to encouraging decarbonization in the United States and abroad.
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