In this week’s episode, host Kristin Hayes talks with Brian Flannery, a visiting fellow at Resources for the Future and an expert on international climate policy. Flannery describes how border carbon adjustments—essentially taxes imposed on goods from countries with relatively less ambitious climate standards—are gaining traction, with proposals circulating in the United States and the European Union. However, Flannery cautions that these policy tools will confront a number of challenges before they can be implemented, including backlash from countries that could be negatively affected and the need to abide by World Trade Organization rules.

References and recommendations:

“Policy Guidance for US GHG Tax Legislation and Regulation: Border Tax Adjustments for Products of Energy-Intensive, Trade-Exposed and Other Industries” by Brian Flannery, Jennifer A. Hillman, Jan Mares, and Matthew C. Porterfield; https://www.rff.org/publications/reports/policy-guidance-us-ghg-tax-legislation-and-regulation/

“Framework Proposal for a US Upstream GHG Tax with WTO-Compliant Border Adjustments: 2020 Update” by Brian Flannery, Jennifer A. Hillman, Jan Mares, and Matthew C. Porterfield; https://www.rff.org/publications/reports/framework-proposal-us-upstream-ghg-tax-wto-compliant-border-adjustments-2020-update/

“Implementing a Framework for Border Tax Adjustments in US Greenhouse Gas Tax Legislation and Regulations” by Brian Flannery; https://www.resources.org/common-resources/implementing-framework-border-tax-adjustments-us-greenhouse-gas-tax-legislation-and-regulations/

Transcript of an oral evidence session in the House of Lords for the inquiry into Ofgem and net zero, with Sir Dieter Helm; https://committees.parliament.uk/oralevidence/2601/pdf/