As major developed economies continue to decarbonize at home, they import huge amounts of carbon in the form of goods manufactured in carbon-intensive countries and consumed within their borders. This is the “carbon loophole,” and it is significant. By leveraging trade relationships and the power of the global market economy, we can help address this loophole. This new report examines four emerging areas of opportunity within the climate-trade nexus for U.S. policymakers.
