The EU CBAM and the U.S. Inflation Reduction Act

Squaring the Transatlantic Circle?

Panelists:
Emily Lydgate, Professor of Environmental Law, University of Sussex
Shuting Pomerleau, Deputy Director of Climate Policy, Niskanen Center
Todd Tucker, Director, Industrial Policy and Trade, Roosevelt Institute
Charlotte Unger, Senior Research Associate, Research Institute for Sustainability Helmholtz Centre Potsdam

Moderator:
Peter Rashish, Vice President & Director, Geoeconomics Program, AGI

Faced with the existential challenge of climate change, the U.S. Inflation Reduction Act (IRA) and the EU’s Carbon Border Adjustment Mechanism (CBAM) are both designed to reduce carbon emissions. But their reliance on different instruments to incentivize decarbonization both at home and abroad could lead to frictions in the transatlantic economic relationship and strain the international trading system.

In this discussion, the speakers explore avenues for bridging differing U.S. and EU climate policy starting points in a way that strengthens the transatlantic relationship and advances the decarbonization goals of the UNFCCC Paris Agreement.

This event is made possible by support from the Heinrich Boell Foundation.