---
title: Carbon Leakage | one to ONE Holdings
description: "Avoid carbon leakage: When strict rules drive production abroad, increasing global emissions."
image: https://www.o2oh.com/hubfs/o2Oh_18mm.jpg
---

Perfecting imperfections with one to ONE

# Glossary

### GLOSSARYTerms A-Z

- [Glossary](https://www.o2oh.com/glossary)
- [ALL](https://www.o2oh.com/glossary?val=all)
- [A～G](https://www.o2oh.com/glossary?val=a_g)
- [H～N](https://www.o2oh.com/glossary?val=h_n)
- [O～U](https://www.o2oh.com/glossary?val=o_u)
- [V～Z](https://www.o2oh.com/glossary?val=v_z)
- [Numbers ・ Symbols](https://www.o2oh.com/glossary?val=0_9)

# Carbon Leakage

Carbon leakage occurs when strict environmental rules in one jurisdiction inadvertently cause production to shift to nations with less stringent carbon standards.

In [**hard-to-abate sectors**](https://www.o2oh.com/glossary/hard-to-abate-sectors) like steel, high domestic carbon costs can drive investment abroad to avoid financial penalties. This creates a "leakage" where global emissions remain unchanged or even increase, while the regulating nation suffers industrial decline.

 

[![Decarbonizing Steel: Why the BF-EAF Dual Mandate Must Be the Focus | Our Strategic View Part 1](https://no-cache.hubspot.com/cta/default/8005843/interactive-199457839260.png) ](https://www.o2oh.com/hs/cta/wi/redirect?encryptedPayload=AVxigLIonOlwSIUbzrtadS20%2FuGHFOWVA2V%2FSpCJ6oVCaPG8e7n0hYk8JdAJL%2BLUgGXgsgoZB5WsK5ECbu1rcQlJPE5GnZHmH5qYbcHhxM5r%2FigivQVX6Hoiny8%2FolQToUtGHM%2BQP0q1xK%2FXvCOS4h5NEUl55dgZbYQ3D7VfkqV%2Fh5CNrV4hIPsU1nbIV1rFKQclqbBMifr%2BEWqHYX%2FArKg6lZuX1X8NkRf0mqA3thFil14xDmeWTSd2PY7j&webInteractiveContentId=199457839260&portalId=8005843)

### RELATED WORDS

---

- [Catena-X](https://www.o2oh.com/glossary/catena-x)
- [Cyber-Physical Security](https://www.o2oh.com/glossary/cyber-physical-security)
- [Cognitive Ergonomics](https://www.o2oh.com/glossary/cognitive-ergonomics)
- [Cloud Lock-in](https://www.o2oh.com/glossary/cloud-lock-in)
- [Capital Expenditure (CAPEX)](https://www.o2oh.com/glossary/capital-expenditure-capex)
- [Cyber Attacks](https://www.o2oh.com/glossary/cyber-attacks)
- [Cobots](https://www.o2oh.com/glossary/cobots)
- [Cascade Recycling](https://www.o2oh.com/glossary/cascade-recycling)
- [CBAM](https://www.o2oh.com/glossary/cbam)
- [Closed-Loop Supply Chain (CLSC)](https://www.o2oh.com/glossary/closed-loop-supply-chain-clsc)
- [Contamination](https://www.o2oh.com/glossary/contamination)
- [Closed-Loop Recycling](https://www.o2oh.com/glossary/closed-loop-recycling)
- [CSRD](https://www.o2oh.com/glossary/csrd)
- [Corporate Governance](https://www.o2oh.com/glossary/corporate-governance)
- [CFP](https://www.o2oh.com/glossary/cfp)
- [Corrosion Resistance](https://www.o2oh.com/glossary/corrosion-resistance)
- [Continuous Casting](https://www.o2oh.com/glossary/continuous-casting)
- [Cradle to Grave](https://www.o2oh.com/glossary/cradle-to-grave)
- [Chromate-Free](https://www.o2oh.com/glossary/chromate-free)
- [Cradle to Gate](https://www.o2oh.com/glossary/cradle-to-gate)
- [Chain of Custody (CoC)](https://www.o2oh.com/glossary/chain-of-custody-coc)
- [Cutoff Criteria](https://www.o2oh.com/glossary/cutoff-criteria)
- [Cathode](https://www.o2oh.com/glossary/cathode)
- [Coal Gassification](https://www.o2oh.com/glossary/coal-gassification)
- [Cyber-Physical Systems (CPS)](https://www.o2oh.com/glossary/cyber-physical-systems-cps)
- [Changeover Time](https://www.o2oh.com/glossary/changeover-time)
- [Coal](https://www.o2oh.com/glossary/coal)
- [Cathodic Protection](https://www.o2oh.com/glossary/cathodic-protection)
- [CAD (Computer-Aided Design)](https://www.o2oh.com/glossary/cad-computer-aided-design)
- [CAM (Computer-Aided Manufacturing)](https://www.o2oh.com/glossary/cam-computer-aided-manufacturing)
- [Coke](https://www.o2oh.com/glossary/coke)
- [Carbon Footprint](https://www.o2oh.com/glossary/carbon-footprint)
- [CCS](https://www.o2oh.com/glossary/ccs)
- [CCUS](https://www.o2oh.com/glossary/ccus)
- [Clean Technology Manufacturing (CTM)](https://www.o2oh.com/glossary/clean-technology-manufacturing-ctm)

Copyright © one to ONE Holdings Pte. Ltd. All Rights Reserved.

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