Carbon leakage and Income statement exposure: Difference between pages

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imported>Administrator
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1. ''Environmental policy - European Union (EU) - regulation.''  
1.  
 
''Foreign exchange risk''.
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 increasing strict regulation within the EU.
Arises as a result of the process of translating income statement items denominated in foreign currency into group income statements denominated in the parent currency.
 
This is a form of foreign exchange Translation exposure.
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.


2.
More generally, the risk of adverse effects in the income statement arising from foreign exchange risk or from other sources.


== See also ==
== See also ==
* [[Bloc]]
* [[Balance sheet exposure]]
* [[Carbon Border Adjustment Mechanism]] (CBAM)
* [[Group accounts]]
* [[Carbon credits]]
* [[Income statement]]
* [[Carbon footprint]]
* [[Translation exposure]]
* [[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]]
* [[Streamlined Energy and Carbon Reporting]]
* [[World Trade Organization]] (WTO)


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 14:19, 23 October 2012

1. Foreign exchange risk. Arises as a result of the process of translating income statement items denominated in foreign currency into group income statements denominated in the parent currency. This is a form of foreign exchange Translation exposure.

2. More generally, the risk of adverse effects in the income statement arising from foreign exchange risk or from other sources.

See also


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