TRADE

A quarter of global greenhouse gas emissions are embedded in goods that are traded internationally. Yet the current trade system hinders climate progress by failing to reward ambitious investments in decarbonization by prioritizing least-cost, often high-emitting goods. If we are to succeed in addressing this global challenge, we must leverage global trade tools and pursue cooperation with climate-ambitious trading partners. Doing so has the potential to substantially lower global emissions, create worldwide incentives for cleaner manufacturing, and encourage all countries to do their part.

MEASURING EMISSIONS

Consumers, firms, and governments are demanding a clearer picture of the carbon emitted along the entire goods manufacturing supply chain. At the same time, there is little to no agreement between countries or within industries on how to measure these emissions. This presents a complex challenge as, in the absence of common approaches, governments and the private sector are developing their own measurement solutions. What we’re building towards is an increasing number of incompatible approaches that prevent customers from being able to confidently determine which goods have the lowest carbon intensity. Delivering useful, goods-level data will require clearly defined, verifiable, administratively feasible—and perhaps most importantly, aligned—processes for measuring and reporting carbon intensity across industries and international borders. Better streamlined emissions measurement and reporting approaches will improve market certainty, create clarity about emissions impacts, and ultimately support global decarbonization.

SUPPLY CHAIN SECURITY

Diverse and reliable supply chains are a vital component of any strategy to reduce greenhouse gas emissions. Accelerated by demand for advanced energy and information technologies, global demand for critical minerals is projected to double by 2030 and quadruple by 2040. The race for these resources is forcing U.S. policymakers to grapple with how to secure already vulnerable supplies that are crucial to economic growth and technological advancement. While domestic investments in mining and processing will help, the U.S. must match those commitments with efforts to expedite minerals development abroad and foster innovation to reduce supply chain vulnerabilities.

INTERNATIONAL INVESTMENTS & EXPORTS

International investment and export strategies play a direct role in strengthening the U.S.’s economic standing—and they can also contribute to lower global emissions. The U.S. economy is large, dynamic, and innovative. When American firms, which have a well-established carbon advantage over international competitors, make and export goods, they can displace dirtier production. Further, the global economy is increasingly demanding advanced energy technologies that have fewer emissions. This offers an expansive market opportunity for U.S. businesses. To realize the abundant economic, security, geopolitical, and climate benefits from a stronger U.S. role in global energy investments and exports, policymakers must come off the sidelines and meet the challenge. Their task: align investment and export policy with economic, security, and climate priorities. 

CARBON DIVIDENDS

The Climate Leadership Council’s Carbon Dividends Plan would invest all Americans in a clean energy future, give U.S. businesses policy certainty, and hold other countries accountable. The Carbon Dividends Plan has four pillars: A gradually rising carbon fee, carbon dividends for all Americans, simplify regulations, and a border carbon adjustment.