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Podcast / Audio

PODCAST: Is achieving a net zero emission target and having the risk of carbon leakage a “paradox”?

image credit: Special thanks to Dr. David Comerford, Dr. Robert Charnock, and Dr. Ranit Chatterjee, for all the support & guidance.
Saikat Das's picture
Economics & Policy of Energy and Climate Change, FoundOcean Limited

With over 7 years of experience in various leadership sectors, Saikat Das is a Project Engineer at FoundOcean, a global leader in subsea and offshore engineering solutions. He thrives in...

  • Member since 2022
  • 6 items added with 2,843 views
  • Sep 7, 2022
  • 871 views

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-Hi listeners,

-I am Saikat Das, I’m currently pursuing my MSc in Economics, Policy of Energy & Climate Change at the University of Strathclyde where I expect to graduate in September 2022.

 

 

This podcast is immensely important as the topic today is exclusively related to my dissertation, which is “Is achieving a net zero emission target and having the risk of carbon leakage a “paradox”? As global emissions of GHGs continue to rise, stricter climate measures are required to accomplish the Paris Agreement's objectives. Also, emissions must be reduced to net zero by 2050 at the latest to achieve a balance between emissions and removals of GHGs in the mid-twentieth century. Accordingly, measures that reduce emissions in one jurisdiction may raise emissions in another region due to the cross-border migration of emission-intensive industries. This overflow of emissions, primarily through international commerce, might result in "carbon leakage." This podcast begins with a review of carbon leakage's underlying processes, a few works of literature evaluation, and forward discussions on the topic. The podcast then highlights various anti-leakage measures, such as the free allocation of emission permits and carbon adjustment at borders. Well-designed anti-leakage measures that provide economic and environmental advantages as well as ensure fairness and justice are essential. Emission Trading Systems are well-suited to achieve this goal: they give confidence over emissions limits and longer-term control points to drive investment in the low-carbon transition. There are several ETSs across countries, however, this paper will focus on the European Union’s ETS. Post-2020 EU ETS regulations provided a chance to alter "carbon leakage" laws. Europe's industrial carbon performance needs future-oriented climate measures. In the Commission's latest proposal for a revamped ETS, free allowances across all sectors would fall over time, and for CBAM sectors, they will be phased out by 2026. The net-zero pledges for 2050 that have been declared by more than 100 nations provide a chance to join a climate club featuring unilateral border controls to safeguard carbon leakage while motivating ambitious climate initiatives. Therefore, although carbon leakage is unlikely to fully undercut climate measures undertaken by frontrunners, it may diminish their efficacy. Hence, specialized strategies to prevent carbon leakage become important.

Our esteemed guests: Dr. Ranit Chatterjee, Specialist, Business Innovation Unit at TCS Japan. Ranit received his Doctor of Philosophy (Ph.D.) focused on Disaster Management from Kyoto University, having a plethora of publications published worldwide. He is also a Co-founder of RIKA India, a social entrepreneur startup established to support research, innovation, and evidence-based policymaking in the Asia Pacific region. Worked closely with esteemed organizations such as the UN, SAARC, etc. and,

Dr. Robert Charnock, Director of the Metis Institute for Climate Strategy, Director of Climate Change and Sustainability at RSK Centre for Sustainability Excellence. Robert specialises in climate-related finance and disclosures (TCFD, climate scenario analysis) as well as carbon accounting (inc. net zero accounting), working across regulators, industry, think tanks and academics to develop practical research insights. He received his PhD in Carbon Accounting from the London School of Economics and Political Science, while working with the United Nations to develop a financial sector toolkit for analysing and managing the risks of climate change.

Note: This podcast is a part of my (Saikat Das) dissertation and hence, submitted for evaluation to the Economics and Policy of Energy & Climate Change, Economics department under the University of Strathclyde, Glasgow, Scotland.

Discussions
Matt Chester's picture
Matt Chester on Sep 7, 2022

Great topic, and appreciate you sharing the fruit of your dissertation! If you had a chance to start this effort over for your studies, is there a slightly different angle you'd take knowing what you know now? Or did you end up pursuing exactly the area you were hoping to in the end? 

Saikat Das's picture
Saikat Das on Sep 8, 2022

Thanks, Matt, for the heads-up. I am writing a new article here about my key findings and recommendations for carbon leakage and its paradox toward a zero-carbon economy. I will reply gain in this comment with the link of the same. 

Saikat Das's picture
Saikat Das on Sep 8, 2022

https://energycentral.com/c/ec :- here is the link for the blog

Matt Chester's picture
Matt Chester on Sep 8, 2022

Love the follow up, Saikat. Thanks!

Saikat Das's picture
Thank Saikat for the Post!
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