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Leakage

Definition

The unexpected loss of anticipated carbon benefits due to the displacement of activities in the project area to areas outside the project, resulting in carbon emissions. Leakage can negate some or all of the carbon benefits generated by a project. Although not often acknowledged, leakage can also be positive, if best practices are adopted outside of the project area and gain widespread use.e.g. the displacement of logging due to forest conservation activities.

Source

IUFRO. "Carbon in Forests Multilingual Glossary of carbon related forest terminology." 18 September 2010. http://iufroarchive.boku.ac.at/silvavoc/carbonglossary/main.php?type=tr…

Alternative definition

That portion of cuts in greenhouse-gas emissions by developed countries -- countries trying to meet mandatory limits under the Kyoto Protocol -- that may reappear in other countries not bound by such limits. For example, multinational corporations may shift factories from developed countries to developing countries to escape restrictions on emissions.