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.’
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