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Co-authored by Isabel Root (Intern) On Monday, July 19, 2021, Sen. Chris Coons (D-DE) and Rep. Scott Peters (D-CA-52) introduced The FAIR Transition and Competition Act of 2021 (S. 2378). The bill would, among other things, amend the Internal Revenue Code of 1986, as amended, by establishing a Border Carbon Adjustment (BCA). As proposed, the BCA may be likened to a value-added tax (VAT) and is intended to address the phenomenon known as carbon leakage, wherein market actors attempt to avoid the cost of greenhouse gas regulations by sourcing products from less regulated jurisdictions. Proponents of border tax adjustments argue that they level the playing field for manufacturers in the United States whose

New yorkUnited statesChuck schumerMitt romneyEnvironmental protection agencyDevelopment assistance committee listDevelopment assistance recipientsOrganization for economic cooperationIsabel rootChris coonsCompetition actInternal revenue codeBorder carbon adjustmentUnited statesLeast developedOfficial development assistance recipients