A small group of industrial commodities such as steel, cement, aluminum, and various chemical products account for around 22 percent of global CO2 emissions. Often referred to as basic materials, these goods play a vital role in economic development, and as a result global demand is expected to increase dramatically – up to fourfold this century. That makes them an inescapable part of the net-zero equation, but tackling emissions from basic materials poses unique challenges, including potential carbon leakage. This report provides a review of current efforts to address carbon leakage, assess the risk of carbon leakage, and develop policies to strengthen decarbonization efforts in light of ongoing leakage vulnerability and the push to achieve net-zero emissions.
Carbon leakage and deep decarbonization: future-proofing carbon leakage protection
Acworth, William; Christopher Kardish and Kai Kellner 2020: Carbon leakage and deep decarbonization: future-proofing carbon leakage protection. Berlin: International Carbon Action Partnership.