This video playlist explores the concept of carbon leakage, defined by participants as the shifting of emissions due to climate policies from one country to another, and the wide-ranging implications of this. Participants examine how this phenomenon undermines the effectiveness of climate policy, discourages regulation of heavily traded sectors, and creates challenges for developing countries, while also outlining practical steps that businesses and policymakers can take to address it through decarbonisation investment, smarter procurement, and stronger international cooperation.
Johanna Lehne (Associate Director, Clean Economy, E3G), Neelima Jain (Director, Industrial and Trade Policy, India Energy & Climate Centre), and Dr Michael Mehling (Deputy Director, Centre for Energy and Environmental Policy Research, MIT) discuss the key points.