It's essentially a carbon tax on local production and a corresponding carbon tariff on imports. Countries that already have a carbon tax or equivalent don't get tariffed. IOW, they're part of the club.
Usually a carbon rebate is also included in the plan, although that's not strictly necessary.
Germany was spear-heading an effort to create a carbon club, but it fell apart, unfortunately. At the time a club that didn't include the US seemed infeasible.
In 2026 a club that doesn't include Trump's America is a good thing, not a bad thing IMO.
https://www.aeaweb.org/articles?id=10.1257%2Faer.15000001
It's essentially a carbon tax on local production and a corresponding carbon tariff on imports. Countries that already have a carbon tax or equivalent don't get tariffed. IOW, they're part of the club.
Usually a carbon rebate is also included in the plan, although that's not strictly necessary.
Germany was spear-heading an effort to create a carbon club, but it fell apart, unfortunately. At the time a club that didn't include the US seemed infeasible.
In 2026 a club that doesn't include Trump's America is a good thing, not a bad thing IMO.