IHS Chemical Week

Industry Challenges OECD Finding on Carbon Leakage

1:25 PM MDT | September 29, 2009 | Alex Scott

A key tenet of the western chemical industry’s lobbying position at the upcoming climate change summit in Copenhagen—that unilateral greenhouse gas (GHG) emissions cuts will lead to carbon leakage—has been undermined by an Organisation for Economic Cooperation and Development (OECD; Paris) report, which concludes that carbon leakage is not occurring. Carbon leakage is defined here as the relocation of manufacturing plants from developed countries that cap and charge GHG emissions, to countries that do not charge for GHG emissions. The OECD’s findings are...

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