Carbon Leakage
The Energy White Paper, Powering our Net Zero Future (CP 337), published in December 2020 by HM Government, suggests carbon leakage: ‘Refers to the situation that may occur if, for reasons of costs related to climate pricing policies, businesses were to transfer production or reallocate future investments to other countries with laxer emission constraints or carbon pricing. This could lead to an increase in total global carbon emissions.’
UK Concrete and Cement Industry, Roadmap to Beyond Net Zero, Published by MPA UK Concrete in 2020, defines carbon leakage as: ‘the displacement or increase in global emissions resulting from businesses relocating their production, investment and associated emissions abroad. This can occur when a carbon price leads to certain industrial activities being at a competitive disadvantage compared to their counterparts in countries without an equivalent carbon cost.’
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