Conference Agenda

Catherine Wolfram, MIT Sloan School of Management, USA

Even as the U.S. steps back from climate leadership, other countries are making progress. The EU’s carbon border adjustment mechanism (CBAM) has spurred new interest in carbon pricing, especially in heavy industries like steel, cement, aluminum, and fertilizer. China is expanding its carbon market to cover these sectors, and most G20 countries now have or are developing carbon pricing policies. I will describe ongoing work that builds on this momentum. Specifically, collaborators and I are encouraging a subset of countries to form a coalition committing to carbon pricing in these emissions-intensive sectors and applying border fees on imports from countries that don’t. In return, members would benefit from trade access, technology sharing, and climate finance. The coalition could use a tiered pricing system to reflect countries’ levels of development and adopt common standards to reduce compliance burdens. This approach creates real incentives to join and addresses the free-rider problem that weakens global climate action. If widely adopted, the coalition could cut global emissions by up to 3% and lay the groundwork for broader cooperation. The keynote will explain how this targeted and practical strategy can drive meaningful progress—even without U.S. leadership.