Climate Policy Wins

Dear Editor,

Climate policy wonks rejoice: the EU's CBAM is in effect.

For the non-nerds, that alphabet soup means the European Unions Carbon Border Adjustment Mechanism is in effect. While certainly more complex than a paragraph can convey, the upshot about the CBAM is this: it's a policy designed to promote cleaner, greener manufacturing processes by applying an import tax on certain materials from countries with higher manufacturing emissions/lower regulations around pollution or emissions in manufacturing.

For the EU, this is initially being applied to steel, cement, and other carbon-intensive manufactured process. The goal is twofold: to not disadvantage local producers having to work under stricter environmental regulations which often add to the cost of their product; and to incentivize the exporting countries to 'clean up their act' so to speak and invest in less polluting manufacturing processes.

No doubt implantation of this will be rocky, but it's a start. If we want a greener future from our manufacturing sector, it is more obvious than ever that the answer is to hit 'em where it hurts - in the wallet.

Sincerely,

Nathan Dombeck, Janesville, WI