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Climate Policy Info Hub

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Carbon leakage

Carbon leakage describes the risk that companies relocate their headquarters to a different country with laxer climate laws to avoid being subjected to more demanding climate policies, for example carbon pricing schemes. As a result of carbon leakage, there is no net reduction of emissions as the emissions simply occur elsewhere. The carbon leakage risk varies amongst economic sectors.

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The Climate Policy Info Hub has been created within the POLIMP project which has received funding from the European Union's Seventh Framework Programme for Research, Technological Development and Demonstration under Grant Agreement Number 603847.

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