> For the complete documentation index, see [llms.txt](https://aetlas.gitbook.io/aetlas/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://aetlas.gitbook.io/aetlas/for-project-developers/references-and-other-guidance/essential-principles-for-high-quality-carbon-dioxide-removal/leakage.md).

# Leakage

Economic leakage (“leakage”) is the displacement of GHG emissions from the project site to another geographic location. Economic leakage typically occurs because market demand for the output of the emitting activity is unchanged, while the CDR project decreases local supply. Leakage should not be confused with physical leakage of stored CO2, which is discussed in the Durability principle. 

There are two forms of economic leakage: activity-shifting and market. Activity-shifting leakage occurs when agents operating within a project boundary shift production outside the project boundary. Market leakage occurs when a project reduces the production of a good, and this local reduction induces increased production of that good elsewhere to meet demand. Market leakage can be very difficult to predict and measure. 

### Project Developers Must 

* Conservatively account for the carbon impacts of leakage caused by the project or conclusively demonstrate the project avoids any leakage. 

### Project Developers Should 

* Diminish leakage risk in project design.