The World Bank’s Partnership for Market Readiness (PMR) brings together developed and developing countries to build readiness for carbon market instruments to support cost-effective greenhouse gas emissions reductions. As part of the PMR’s Technical Work Program, the World Bank asked Vivid Economics to develop a technical note on the issue of carbon leakage and competitiveness. This issue is of interest to a range of PMR countries and is of great importance to successful design and implementation of carbon pricing policies. The purpose of this report is to draw lessons from policy-making experience and academic evidence to provide guidance to countries on how to address issues of leakage as they arise in their national contexts.