Carbon leakage
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1. Environmental policy - European Union (EU) - regulation.
In the EU context, carbon leakage is the situation where greenhouse gas (GHG) emissions increase in other countries, as a consequence of reductions in GHG emissions and increasingly strict regulation within the EU.
This might result from:
- EU businesses transferring their domestic production to other countries with looser regulation.
- Replacing domestic production with imports from other suppliers in those countries.
2. Environmental policy - other jurisdictions - regulation.
Similar consequences in other countries and blocs.
See also
- Bloc
- Carbon Border Adjustment Mechanism (CBAM)
- Carbon credits
- Carbon footprint
- Carbon-neutral
- Carbon tax
- Carbon Trust
- Corporate social responsibility
- Decarbonise
- Embedded carbon
- Environmental profit and loss
- Footprint
- Greenhouse gas (GHG)
- International Institute for Sustainable Development
- Regulation
- Renewables
- Scope 3 emissions
- Streamlined Energy and Carbon Reporting
- World Trade Organization (WTO)
