On July 9, Representatives John Curtis (R-UT) and Scott Peters (D-CA) introduced a House version of the Providing Reliable, Objective, Verifiable Emissions Intensity (PROVE IT) Act, joined by 19 bipartisan co-sponsors. This bill instructs the Department of Energy (DOE) to examine the carbon intensity of various industrial products made in or imported into the U.S., focusing on high-emissions items like aluminium, cement, crude oil, and natural gas.
Countries are increasingly using trade policy to achieve climate objectives. For instance, the European Union’s (EU) Cross Border Adjustment Mechanism (CBAM) imposes fees to protect cleaner domestic producers and encourage emissions reductions among trading partners.
The PROVE IT Act does not impose a tax; instead, it establishes a standardised system for collecting and reporting carbon intensity data. The DOE’s first study on emissions of the covered products is due two years after the bill’s passage and must be updated at least every five years. As other countries implement or consider carbon taxes on imports, accurate carbon intensity data will be crucial for U.S. industries during negotiations with trading partners.
The growing market interest in differentiated natural gas shows that high-quality emissions data is already in demand, even without a carbon tax. Technologies like Context Labs’ Decarbonization as a Service (DaaS™) and CLEAR Path™ registry provide reliable, measurement-based emissions data. This verified data allows companies to market differentiated gas at a premium, helping them reduce emissions and access foreign markets.
A Senate version of the bill, introduced by Chris Coons (D-DE) and Kevin Cramer (R-ND), passed the Environment and Public Works Committee in January. At a Capitol Hill event announcing the House introduction, Congressional staffers and trade policy experts expressed optimism about the legislation’s progress in the next Congress.
Context Labs supports the PROVE IT Act, viewing it as a crucial step towards providing an official, government-backed source for validating the superior performance of U.S. industry. If the act is enacted, Context Labs plans to collaborate with the DOE to ensure the study upholds the highest standards of emissions data integrity.
The introduction of the PROVE IT Act marks a significant move towards standardised carbon intensity reporting, aiding U.S. industries in global emissions negotiations and supporting market access for low-emission products.
i(x) Net Zero plc (LON:IX) is an investing company which focusses on Energy Transition and Sustainability in the Built Environment, and was founded in 2015 by Trevor Neilson, Pär Lindström and Howard W. Buffett. It has holdings that are committed to facilitating and accelerating the transition away from energy that is derived from fossil fuels to clean and renewable energy sources including Context Labs.
