Why is it challenging for the US and the EU to reach an agreement on carbon tariffs? What are the key obstacles to forming a climate club? First, instead of the GASSA’s common tariff, the climate club would allow members to devise their own unique tariff methodologies and accompanying domestic regulations. [15]Second, the climate club would require that the industry-wide emission intensity for a member country remain within a predefined band with a downward trajectory over time. [3] “Biden Extends EU Steel, Aluminum Tariff Exemption for 2 Years,” Reuters, December 28, 2023, https://www.reuters.com/world/us/biden-extends-eu-steel-aluminum-tariff-exemption-2-years-2023-12-28/.

Source: Wall Street Journal January 17, 2024 14:34 UTC