Carbon Leakage

In order to avoid carbon leakage - i.e. the relocation, due to emissions costs, of CO₂-intensive production to countries with no or only low emissions costs - all globally competing emitters of greenhouse gases must be subject to the same climate policy. This is not currently the case. In its latest study, therefore, cep has drawn up a list of requirements which need to be met in order to avoid carbon leakage.