The Australian Government has released the Carbon Leakage Review’s final report. The Review was undertaken by Professor Frank Jotzo from July 2023 to March 2025.
Carbon leakage occurs when domestic production moves to countries with weaker climate policies. This can lead to emissions increasing overseas.
About the review
The review assessed carbon leakage risk of Australia's traded products. The review also assessed potential measures to mitigate this risk.
The review released 2 consultation papers in November 2023 and November 2024. A broad range of stakeholders provided feedback, including:
domestic businesses
peak bodies
academics
research bodies
international firms
overseas governments.
The Review also engaged with major international partners and organisations.
The government will continue to consult on carbon leakage with affected industries.
We will consider these issues further in the 2026-27 review of the Safeguard Mechanism.
