Permanence and leakage a special problem for carbon sequestration

Leakage is a concern for climate change as the cap that is set, presumably based on a solid assessment of acceptable emissions of carbon to the atmosphere, is not met because reductions taken by some entities are offset by an increase in emissions by entities not under the cap. As permanence is analogous to the spatial leakage problem, it is useful to refer to it as temporal leakage. Spatial leakage occurs because, at a given time, some emitters are not covered by the cap. Temporal leakage occurs when entities are induced to make reductions or sequester carbon in one period, but are outside the incentive system in a later period. Land use emissions face a special problem with permanence and leakage only because land use has been envisioned as entering voluntarily and as a credit rather than under a cap.

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