Canada’s Carbon Leak Problem

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Title: Canada’s Carbon Leak Problem

Author: Michael Binnion

Publisher: Options Politiques

Date: February 1, 2017

Full Text Article

Summary:

  • Agriculture, chemicals, refined products, oil and gas, and base metals are most likely to lose large international market share, which implies high rates of carbon leaks.  His study estimates an annual loss of 2.81% of GDP without mitigation and 1.79% with mitigation.
  •  Navius Research studied the TMX pipeline and found leakage rates of between 133% and 200%.   This would mean environmentalists who oppose and delay the TMX pipeline are actually increasing global emissions.
  • Canadian policy-makers simply have not adequately studied this issue.  We need to know our carbon leaks by region and sector to be able to assess the global impact of our policies.

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