Carbon Trust study on international carbon flows

The Carbon Trust has conducted a fascinating analysis of how world-wide trade and consumption is driving international carbon flows. The findings are given in a series of linked reports, one focusing on international carbon flows overall, and the others focusing on key sectors: automotive, steel, aluminium, cotton, clothing. Note that the studies look at CO₂ only and not the other GHGs (eg. methane and nitrous oxide), so a discussion of agriculture does not feature (cotton is looked at in terms of energy use from nitrogen manufacture and other associated fossil fuel use).

Key findings from the International carbon flows report as follows:

Embodied carbon flows are large and growing. Approximately 25% of all CO₂ emissions from human activities ‘flow’ (i.e. are imported or exported) from one country to another.

Embodied carbon flows in both commodities and final products The flow of carbon is comprised of roughly 50% emissions associated with trade in commodities such as steel, cement, and chemicals, and 50% in semi-finished/finished products such as motor vehicles, clothing or industrial machinery and equipment.

Embodied carbon imports are significant for many developed economies Major developed economies are typically net importers of embodied carbon emissions. UK consumption emissions are 34% higher than production emissions: Germany (29%), Japan (19%) and the USA (13%) are also significant net importers of embodied emissions. For some economies with very carbon efficient production processes, the relative importance of imported carbon is even greater. The high levels of net imports in France (43%) and Sweden (61%) reflect in part the low carbon intensity of their energy systems.
Many developing countries export embodied emissions in international trade while developed countries tend to be net importers

Developing countries are generally net exporters of CO₂ emissions. For example, in 2004 China exported ~23% of all its domestically produced CO₂.

• Half of all globally traded emissions are embodied in final products, half in commodities (remember agriculture is excluded from this analysis)
• China, North America and Europe are major players in the global exchange of embodied emissions in trade Four of the top 10 embodied emissions flow routes originate in China. The USA and the EU are destinations for the majority of the top 10 inter-regional trade flows.
• There is a strong relationship between the increasing value of global trade (and therefore emissions embodied in trade) and increasing trade relative to GDP. International carbon flows have been increasing over time, in both relative and absolute terms. This increase mirrors the increasing importance of international trade in the global economy. For the UK, The significance of imported embodied emissions in UK consumption emissions is expected to increase over time
• There is a large difference in per-person consumption emissions across different countries

Balance of import/export and domestic emissions for different countries

You can download all the reports free (although login is needed) here.

For more information contact Graham Sinden of the Carbon Trust (and FCRN mailing list member).