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.
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.
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.
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.
The results of this paper show that upon deciding to invest, firms are attracted to regions that have lower energy prices. This supports arguments for better targeting leakage prevention measures to complement carbon pricing for energy-intensive industrial activities. read more »
A project led jointly by Climate Strategies and DIW Berlin has been exploring whether inclusion of domestic sales of selected energy intensive commodities (e.g. steel) in domestic emission trading schemes … read more »