According to the Climate Leadership Council, U.S. steel producers already have a major carbon advantage – they are 75% to 320% more carbon efficient than global producers, depending on the product segment. However, U.S. producers are not receiving any credit for those efficiencies. 

A carbon fee and carbon border adjustment could change that, the group said. By driving out imported steels with greater carbon intensities, greener American steels would have some space to grow -- as much as 7% to 9%. 

“With the right climate policy, America has an opportunity to reset the global rules of climate and trade and ensure its manufacturers and workers come out on top as the world transitions to a low-carbon future,” said Greg Bertelsen, chief executive of the Climate Leadership Council.

“Today, U.S. manufacturers get no credit for producing goods with fewer emissions than their international competitors. Climate policy can reward U.S. manufacturers for their cleaner operations and give them a competitive advantage over high-emitting manufacturers overseas.”