Here’s How the EU Could Tax Carbon Around the World: QuickTake

The European Union has a bold plan for sharply reducing carbon emissions from its factories. It has what might be an even bolder plan for preventing the rest of the world from wiping out those cuts, and killing lots of European jobs at the same time. The plan is for taxing some of the carbon produced by the European factories’ global competitors, through what’s known as a border carbon adjustment mechanism. Other countries might call it a tariff, and a potentially illegal one at that. For the EU, the mechanism could be a way to hit two birds with one ...