Oil & Gas

The U.S. federal government plans to establish a specialized task force to address global carbon emissions resulting from trade and manufacturing activities. This announcement was made by John Podesta, the incoming U.S. climate envoy who will succeed John Kerry. Podesta highlighted the significant impact of global trade on emissions, referring to it as "an elephant in the room" that is contributing significantly to greenhouse gas emissions. He emphasized the need for governments to leverage international economic systems to advance climate action.

The Climate and Trade Task Force aims to rectify the shortcomings of current international trade frameworks and promote climate-friendly practices by encouraging emissions reductions worldwide. It will focus on addressing issues such as carbon leakage, where high-emission production relocates from countries with strict emission regulations to those with weaker rules. Podesta also highlighted the problem of "carbon dumping," where goods manufactured in countries with less stringent emission standards are exported to countries with stricter rules.

Podesta illustrated the need for action by citing the example of aluminum production, noting that over half of the world's aluminum is currently produced in China, where the average ton of aluminum generates 60% more emissions than in the U.S. This situation has negatively impacted American workers and communities. Podesta emphasized that global aluminum production is unnecessarily polluting.

In addition to tackling carbon leakage and dumping, the task force aims to collaborate with trade partners to develop standardized methods for measuring embodied emissions. This will enable countries to leverage their clean manufacturing advantages effectively. The task force will also collect and analyze emissions data to inform the development of new climate and trade policies.