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WORKING PAPER Leakage from an Avoided Deforestation Compensation Policy: Concepts, Empirical Evidence, and Corrective Policy Options Prepared by the Nicholas Institute for Environmental Policy Solutions,
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Leakage from an avoided refers to the unintended or unaccounted emissions that occur as a result of measures taken to prevent or reduce emissions in one area, which might inadvertently lead to increased emissions in another area.
Entities or individuals involved in regulated activities that could cause significant emissions reductions, but may also lead to potential leakage, are typically required to file leakage from an avoided.
To fill out leakage from an avoided, you need to provide information on your emissions reduction activities, any anticipated leakage, and data supporting that analysis, usually in a designated reporting format provided by regulatory authorities.
The purpose of leakage from an avoided is to ensure complete accountability for emissions reductions, prevent unintended negative environmental impacts, and ensure that the overall goals of emission reduction policies are met.
Reported information typically includes the scope of the emissions reduction measures, baseline emissions, estimated leakage amount, and descriptions of mitigation strategies taken to address potential leakage.
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