A Worthwhile Canadian Initiative on Carbon Border Measures

Canada is launching consultations on carbon border measures. There are some notable differences from the EU’s approach right out the gate. (canada.ca/en/department-…)

First, it’s more realistic than the EU’s proposed CBAM in at least two ways. First, it openly acknowledges that decarbonization has to be job- and competitiveness-supporting — not destroying — in order to be viable.

Second, it’s appropriately more catholic about the specific means countries take to decarbonization, so long as the ends are achieved. That is much more aligned with the Paris Agreement, WTO interpretations, and how US policymakers are approaching the question.

That flexible approach makes sense, as the specific decarbonization strategies vary even by province in Canada.

In short, by noting that both the US and EU are pursuing decarbonization strategies and that Canada is working with both of them, Canada is positioning itself as a potentially useful go-between.

(Adapted from this thread.)

I write about democracy, political economy, and trade. Fellow at the Roosevelt Institute and Roosevelt Forward.