However, this has been criticized for not taking technology differences or emission intensities into account 10, 11. The growing debate over EET lies in carbon redistribution, which has effects on regional mitigation responsibilities as well as impacts on global carbon emissions resulting from carbon intensity gaps across regions 6, 7.Ĭonsumption-based accounting has, so far, been proposed by attributing the emissions embodied in imports to final consumers to adjust the mitigation responsibility 8, 9. In the 2000s, emissions from the production of globally traded goods and services (also known as “emissions embodied in trade” or “EET”) accounted for more than 20% of total global CO 2 emissions 4, 5. This has raised concerns that the separation of production and consumption may reduce the effectiveness of climate efforts 2, 3. Trade allows for countries with lower emission intensities (i.e., carbon emissions per unit of production) to import goods from countries with higher emission intensities, which may lead to carbon leakage 1. The mitigation opportunity to green the supply chain lies in sectors such as electricity, mineral products and chemical products, but calls for a universal assessment of emission intensities and concerted effort.Ĭurrent climate targets and policies are based on production-based emissions within jurisdictions, which measure emissions generated in the place where goods and services are produced. The convergence of emission intensities in the global South alleviates concerns that increasing South-South trade would lead to increased carbon leakage and carbon emissions. However, the narrowing emission intensities between South-North and the changing trade patterns results in declining net emissions in trade in the past decade. The related net emissions are about one-third of the total emissions embodied in the South-North trade. Here we show that the relocation of production activities from the global North (developed countries) to the global South (developing countries) in the early 2000s leads to an increase in global emissions due to the higher emission intensities in China and India. This study focuses on the net emission change as the result of the narrowing gap in emission intensities between the exporter and importer. International trade affects CO 2 emissions by redistributing production activities to places where the emission intensities are different from the place of consumption.
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