Editing IPCC:AR6/WGIII/Chapter-13 (section)

=== Box 13.13 | Possible Sources of Leakage ===

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'''Competitiveness:''' Mitigation policy raises the costs and product prices of regulated sources which causes production to shift to unregulated sources, increasing their emissions.

'''Fossil fuel channel:''' Regulated sources reduce their fossil fuel use, which lowers fossil fuel prices and increases consumption and associated emissions by unregulated sources.

'''Land-use channel:''' Mitigation policies that change land use lead to land use and emissions changes in other jurisdictions ( [[#Bastos%20Lima--2019|Bastos Lima et al. 2019]] ).

'''Terms of trade effect:''' Price increases for the products of regulated sources shift consumption to other goods, which raises emissions due to the higher output of those goods.

'''Technology channel:''' Mitigation policy induces low-carbon innovation, which reduces emissions by sources that adopt the innovations that may include unregulated sources ( [[#Gerlagh--2007|Gerlagh and Kuik 2007]] ).

'''Abatement resource effect:''' Regulated sources increase use of clean inputs, which reduces inputs available to unregulated sources and so limits their output and emissions ( [[#Baylis--2014|Baylis et al. 2014]] ).

'''Scale channel:''' Changes to the output of regulated and unregulated sources affect their emissions intensities so emissions changes are not proportional to output changes ( [[#Antweiler--2001|Antweiler et al. 2001]] ).

'''Intertemporal channel:''' Capital stocks of all sources are fixed initially but change over time affecting the costs, prices, output and emissions of regulated and unregulated products.

{| class="wikitable"
|-
!
! colspan="2"| '''Framing of outcome'''

|-
!
! '''Enhancing mitigation'''

! '''Addressing multiple objectives of mitigation and development'''

|-
| rowspan="2"| '''Approach to policymaking'''

| '''Shifting incentives'''

| ‘Direct mitigation focus’ ''( [[#13.6|Section 13.6]] ; 2.8)''

''Objective:'' reduce GHG emissions now

''Literature:'' how to design and implement policy instruments, with attention to distributional and other concerns

''Examples:'' carbon tax, cap and trade, border carbon adjustment, disclosure policies

| ‘Co-benefits’ ''(Sections 17.3; 5.6.2; 12.4.4)''

''Objective:'' synergies between mitigation and development

''Literature:'' scope for and policies to realise synergies and avoid trade-offs across climate and development objectives

''Examples:'' appliance standards, fuel taxes, community forest management, sustainable dietary guidelines, green building codes, packages for air pollution, packages for public transport

|-
| '''Enabling transition'''

| ‘Socio-technical transitions’ ''(Sections 1.7.3; 5.5; 10.8; 6.7; Cross-Chapter Box 12 in Chapter 16)''

''Objective:'' accelerate low-carbon shifts in socio-technical systems

''Literature:'' understand socio-technical transition processes, integrated policies for different stages of a technology ‘S-curve’ and explore structural, social and political elements of transitions

''Examples:'' packages for renewable energy transition and coal phase-out; diffusion of electric vehicles, process and fuel switching in key industries

| ‘System transitions to shift development pathways’ ''(Sections 11.6.6; 7.4.5; 13.9; 17.3.3; Cross-Chapter Box 5 in Chapter 4; Cross-Chapter Box 9 in Chapter 13)''

''Objective:'' accelerate system transitions and shift development pathways to expand mitigation options and meet other development goals

''Literature:'' examines how structural development patterns and broad cross-sector and economy-wide measures drive ability to mitigate while achieving development goals through integrated policies and aligning enabling conditions

''Examples:'' packages for sustainable urbanisation, land-energy-water nexus approaches, green industrial policy, regional just transition plans

|}

'''| Mapping the landscape of climate policy.'''

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