Carbon border adjustment mechanisms (CBAM) are an emerging set of trade policy tools that aim to prevent carbon-intensive economic activity from moving out of jurisdictions with relatively stringent climate policies and into those with relatively less stringent policies. They have the potential to avoid “carbon leakage” and could protect industrial competitiveness by reducing the incentive for businesses to move production abroad. This factsheet compares border adjustment-related proposals introduced in the 118th Congress. It also outlines key considerations in designing a carbon border adjustment. %