The U.S. Clean Competition Act and its Impact on my country
Abstract: This article collects and analyzes the promotion and practice of the Clean Competition Act (CCA) in the United States. It mainly investigates and collects information about the U.S. regulations on the Act and its impact on Taiwanese companies, and provides suggestions on how companies can respond. Secondly, this article also summarizes the comparison between the European Union (Carbon Border Adjustment Mechanism, CBAM) and the US CCA to help small and medium-sized enterprises respond to the carbon tariff policies released by Europe and the United States as soon as possible. 1. Overview of the bill: In June 2022, the U.S. Senate proposed the Clean Competition Act to implement carbon border adjustments on energy-intensive imported products. It is expected to impose carbon tariffs on U.S.-made products and U.S. importers starting in 2024, including Refining, petrochemicals, fertilizers, cement, steel and aluminum. What is different from the EU CBAM is the baseline for carbon tariff calculation and the objects to be levied. The US CCA Act charges carbon fees for importers and domestic manufacturers, but domestic manufacturers can obtain tax rebates when exporting to other countries; the calculation method is based on the US Department of the Treasury. The reported information is used to calculate the average carbon content of each category of U.S. products as the baseline for levying carbon taxes. If the manufacturer's carbon intensity exceeds the carbon intensity baseline applicable to the U.S. industry, it must pay carbon tax on the excess. . In addition, the baseline will be adjusted downward by 2.5% every year starting from 2025, and by 5% every year after 2029. It is worth noting that exports to the United States are taxable