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Market Leakage
Definition:
Market Leakage is an increase in GHG emissions when a project changes the supply and demand equilibrium, causing other market actors to shift their activities. For example, if a large forest‐conservation project reduces the local timber supply so that demand is unmet, this may increase prices and pressures on forests elsewhere.
Source:
Verified Carbon Standard
Category:
General Carbon Accounting Methodology Vocabulary
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Carbon Finance Lexicon
The text is derived from the Finance and Carbon Markets Lexicon prepared by the Forest Carbon, Markets and Communities (FCMC) Program and Tetra Tech ARD and reviewed by the United States Agency for International Development (USAID).
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CARBON FINANCE LEXICON
Afforestation, Reforestation and Revegetation Methodology Vocabulary
Agriculture Land Management Methodology Vocabulary
Avoided Conversion of Grasslands and Shrublands Methodology Vocabulary
Carbon Pools Vocabulary
General Carbon Accounting Methodology Vocabulary
Improved Forest Management Methodology Vocabulary
Peat Rewetting and Conservation Methodology Vocabulary
Performance Vocabulary
Reducing Emissions from Deforestation and Degradation Methodology Vocabulary
Regulatory and Accounting Vocabulary
Risk Management Vocabulary
Valuation Vocabulary
Acronyms and Abbreviations
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REDD
Payments for Ecosystem Services
Carbon finance
Deforestation
Rainforests
Brazil
Indonesia
Forestry
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