The federal government began consultations on “border carbon adjustments” Thursday, asking for opinions on whether and how to tax goods from countries with weaker climate-change policies than Canada’s, or to subsidize exports to those countries from Canadian producers. (The Logic)

Talking point: The European Union is planning a border carbon adjustment and the Biden administration is considering one for the United States. The goal is to prevent “carbon leakage,” when industry moves to jurisdictions with weaker climate-change regulation and keeps polluting while domestic production sags. The challenge is in figuring out which goods should be subject to the adjustments, calculating how much they should be, and not running afoul of existing trade agreements. Any cost imposed on imports would also have an effect on final prices for consumers.