Share this: Ahead of the April U.S. climate summit, several advanced economies, including the U.S., the UK, Canada, Japan, and the EU, announced more aggressive interim emissions reduction targets on the way to net zero by 2050. For instance, the U.S. lifted its target to 50-52% below 2005 levels by 2030, from a previous commitment of 26-28% by 2025. Canada followed suit citing a 40-45% emissions reduction target by 2030, from 36% previously. The commitment is clear within the advanced world, but now the focus is on what package of policies is required for the respective governments to reach these targets. Carbon pricing has been at the center of these discussions for some time and is rising in popularity due to its incentive framework and ease of implementation. And now, a new kid is on the block. A debate is growing over the adoption of carbon border adjustments – levies that would be applied to imports from countries that do not price carbon. This policy framework is known in theory only and has not yet been fully tested in practice. This makes it a contentious issue despite the growing number of advanced countries considering them, including the U.S. and Canada.