carbon leakage

To help nature-based offsets reach their potential for climate change mitigation, this working paper proposes an alternative approach to managing the issue of market leakage. Read more

Developing countries must be involved in the creation of a ‘climate club’ which the G7 has pledged to establish by the end of this year, according to a report commissioned by the German Government and published today (Wednesday 12 October 2022) by the Grantham Research Institute at LSE. Read more

This independent report sets out a rationale and possible design of a Climate Club, taking its point of departure from the June 2022 G7 Leaders’ Statement on Climate Club. Read more

The authors of this paper review the state of knowledge concerning international CO2 emission transfers associated particularly with trade in energy-intensive goods and concerns about carbon leakage arising from climate policies. Read more

This paper analyses the evolution of the EU ETS from a political economy perspective, emphasizing the interaction of economic principles and political interests at pivotal moments, and showing how each compromise changed the scope for future design choices. Read more

This paper examines whether the European Union Emissions Trading System (EU ETS) has led companies to shift the location of production, thereby creating carbon leakage. Read more

Conflicting evidence has been presented on carbon leakage, caused largely due to misconceptions over the term’s meaning. The confusion is worth disentangling because it is obscuring the debate on how to act, argue Misato Sato and Josh Burke. Read more

There is considerable anxiety about the international impact of unilateral action on climate change, particularly around ‘carbon leakage’. Looking at the impact of national climate change policy and legislation over the past two decades, this paper finds no evidence it has increased international carbon leakage. Read more

There has been a resurgence in the debate around Carbon Border Adjustment Mechanisms (CBAMs) and the role they may play in preserving the effectiveness of climate action in high ambition countries. This report explores how the European Union’s CBAM, announced to come into force by the end of 2022, might affect the UK. Read more

A robust carbon pricing framework is needed to support decarbonisation of industry and avoid important UK exports being penalised by the EU’s carbon border adjustment mechanism, according to a new report published today (April 1st 2021) Read more