One real-world example of carbon leakage is the decision by the Danish company Vestas to move its wind turbine manufacturing to Poland. Vestas made this decision in order to avoid the costs of complying with the EU Emissions Trading System (ETS). As a result of this decision, the EU's ETS has been less effective in reducing greenhouse gas emissions from the production of wind turbines.

Another example of carbon leakage is the decision by the Chinese company Foxconn to move its production of laptops to Vietnam. Foxconn made this decision in order to avoid the costs of complying with China's new carbon emissions regulations. As a result of this decision, China's carbon emissions have not decreased as much as they would have if Foxconn had continued to produce laptops in China.

Carbon leakage is a serious problem that can undermine the effectiveness of climate change mitigation policies. It is important to take steps to mitigate carbon leakage, such as by providing financial assistance to companies that are affected by it.