GHG emission reductions and carbon leakage risk

This procedure addresses the challenge of reducing greenhouse gas emissions while preventing 'carbon leakage'. Carbon leakage occurs when companies move production to countries with less stringent climate policies, potentially undermining global emission reduction efforts.

It aims to ensure that climate policies do not unfairly disadvantage domestic industries, impacting sectors like manufacturing and energy. The focus is on finding a balance between environmental protection and economic competitiveness.