Unpacking how international co-operation shapes carbon leakage and economic spillovers across borders

Domestic climate mitigation policies can have spillovers across borders, affecting economic and environmental outcomes. Understanding these effects, and how international co-operation shapes them, can help governments achieve mitigation objectives while limiting unintended consequences.

This session will present new analysis conducted under the Inclusive Forum on Carbon Mitigation Approaches (IFCMA), modelling the spillover effects of mitigation policies across different coalitions of countries. It will examine how international co-operation shapes economic and environmental outcomes, identify key drivers of sectoral spillovers, and explore how policy design choices influence their magnitude and distribution.