carbon leakage and the role of multinational corporations
Carbon leakage refers to the situation where efforts to reduce greenhouse gas emissions in one country or region inadvertently result in increased emissions in another country or regions due to the relocation of production processes. Multinational corporations play a significant role in carbon leakage as they have the ability to shift their production activities to countries or regions with less strict environmental regulations, potentially increasing global emissions despite local efforts to reduce them.
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