Which of the following best describes the term ‘Carbon Leakage’?

Question

Question

The unauthorized release of carbon emissions from industrial facilities.
A type of carbon offsetting practice used by businesses to compensate for their greenhouse gas emissions.
The phenomenon where carbon emissions in one region decrease while increasing in another due to environmental regulations.
A chemical reaction that releases carbon dioxide into the atmosphere.

Answer 1

Answer: C

Key Points

Carbon leakage refers to the scenario where efforts to reduce emissions in one country lead to an increase in emissions in another country. Hence option c is correct.
This typically happens when a country’s strict climate policies (like high carbon taxes or emission caps) pushes businesses to relocate their production to countries with lenient environmental regulations (where it's cheaper to operate better profits)
Carbon leakage can undermine the effectiveness of a country's climate change policies & might not decrease overall global emissions.