AISI Comments on GHG Border Fee Bill Introduced Today

WASHINGTON, DC-   Kevin Dempsey, president and CEO of the American Iron and Steel Institute, issued the following statement on the “Foreign Pollution Fee Act of 2023,” introduced today by Senator Bill Cassidy, M.D., (R-LA). The legislation would establish carbon border fees on some imported goods with higher greenhouse gas (GHG) emissions intensity than the emissions intensity of competing U.S.-made goods, without imposing a tax on domestic GHG emissions:

“The most effective way to reduce global greenhouse gas (GHG) emissions is through policies that hold the most GHG-intensive producers in the world accountable. AISI thanks Senator Cassidy for his leadership in introducing legislation to establish a GHG border fee to accomplish that goal. The American steel industry is the cleanest of the leading steel industries in the world, with the lowest GHG emissions per ton of steel produced, and competes with imports of more GHG-intensive steel from every region of the world. Establishing a comprehensive GHG border fee that requires higher-emitting imports to pay for those emissions will help level the playing field and ensure U.S. producers investing in cleaner production processes are not undercut.

“One aspect of the legislation that we think still needs further work is the country coverage of the new GHG border fee. AISI is concerned that this legislation as currently drafted would exempt some countries from being subject to the border fee, even if products made in those countries have higher GHG emissions intensity than that of comparable American-made goods. We look forward to continuing to work with Senator Cassidy and his colleagues to ensure that the United States establishes a GHG border fee structure that applies to all imports of steel products with higher GHG emissions intensity than those manufactured in the U.S., regardless of the country of origin of those imports.”

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Contact: Lisa Harrison

202.452.7115 / lharrison@steel.org

AISI serves as the voice of the American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI’s membership is comprised of integrated and electric arc furnace steelmakers, and associate members who are suppliers to or customers of the steel industry. For more news about steel and its applications, view AISI’s website at www.steel.org. Follow AISI on Facebook, LinkedIn, Twitter (@AISISteel) or Instagram.