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New bill in US congress to assess carbon intensity of imports

The U.S. steel industry supports a new bill aimed at assessing the carbon intensity of imports.

New bill in US congress to assess carbon intensity of imports

The American Iron and Steel Institute (AISI) and the Steel Manufacturers Association (SMA) have shown strong support for a newly introduced bill in Congress, titled the "Reliable, Objective, Verified Emissions Intensity and Transparency Act" or the Prove It Act. This legislation tasks the U.S. Department of Energy with conducting a detailed analysis of greenhouse gas emissions from steel and other commodities produced domestically compared to those manufactured abroad.

In March 2024, the American Iron and Steel Institute (AISI) urged Congress to revise U.S. trade laws, noting that the current regulations are inadequate to address the tactics used by China and other countries to evade import duties. The Prove It Act is designed to provide robust, transparent emissions data that could lead to the establishment of carbon import tariffs, similar to the European Union's carbon adjustment mechanism. This initiative reflects a growing trend to integrate environmental considerations into trade policies, particularly as concerns about global climate change intensify.

AISI's President and CEO, Kevin Dempsey, stated that the Act is crucial for protecting U.S. steel producers from unfair competition by imports from nations with less stringent environmental regulations. He emphasized that the Act would supply crucial data to justify protective measures for environmentally efficient U.S. industries.

Philip Bell, President of SMA, also backed the bipartisan bill, underscoring its potential to affirm the low carbon emissions of U.S. steel on a global stage.

The Prove It Act is seen that it could lay the groundwork for future carbon import tariffs, similar to the European Union's Carbon Border Adjustment Mechanism (CBAM). In March 2024, the American Iron and Steel Institute (AISI) urged Congress to revise U.S. trade remedy laws, noting that current regulations are inadequate to address the tactics used by China and other countries to evade import duties.

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