Carbon Leakage and Canadian Climate Policy

Carbon Leakage and Canadian Climate Policy reviews the fundamentals of carbon leakage in the context of Canadian climate policy, as well as some of the efforts taken to prevent leakage. The policy challenge is to find a balance between the policies that encourage emissions reductions and the reduced competitiveness created by those policies. The briefing assesses carbon leakage to examine what it is, how it is measured, why it matters, and how Canada has approached this theme to date. Based on the evidence presented, Canada’s current climate policies pay only limited attention to the potential for carbon leakage. There may be an opportunity for Canada to make significant contributions to the global environment through negative carbon leakage.