How do CO2 emissions compare when we adjust for trade?

CO₂ emissions are typically measured on the basis of ‘production’. This accounting method – which is sometimes referred to as ‘territorial’ emissions – is used when countries report their emissions, and set targets domestically and internationally.¹

In addition to the commonly reported territorial emissions statisticians also calculate ‘consumption-based’ emissions. These emissions are adjusted for trade. To calculate consumption-based emissions we need to track which goods are traded across the world, and whenever a good was imported we need to include all CO₂ emissions that were emitted in the production of that good, and vice versa to subtract all CO₂ emissions that were emitted in the production of goods that were exported.

Consumption-based emissions reflect the consumption and lifestyle choices of a country’s citizens.

Which countries in the world are net importers of emissions and which are net exporters?

In the interactive map we see the emissions of traded goods. To give a perspective on the importance of trade these emissions are put in relation to the country’s domestic, territorial.²

• Countries shown in red are net importers of emissions – they import more CO₂ embedded in goods than they export.

• Countries shown in blue are net exporters of emissions – they export more CO₂ embedded in goods than they import.

We see quite a regional East-West split in net exporters and importers: most of Western Europe, the Americas, and many African countries are net importers of emissions whilst most of Eastern Europe and Asia are net exporters.

You can find these figures in absolute (tonnes of CO₂) and per capita terms for each country later in this article.

How do consumption-based emissions compare to territorial emissions?

How did the differences between a country’s territorial and consumption-based emissions change over time?

In the interactive charts you can compare territorial and consumption-based emissions for many countries and world regions since the first data is available in 1990.³ One chart shows total annual emissions, the other one shows the same on a per capita basis.

These comparisons provide the answer to the question whether countries have only achieved emissions reductions by offshoring emissions intensive production to other countries. If only territorial emissions were falling whilst consumption-based emissions were rising, this would suggest it was ‘offshoring’ emissions elsewhere.

In most countries emissions increased when countries become richer, but this is also not necessarily the case: by comparing the change in consumption-based emissions and economic growth we see that many countries have become much richer while achieving a reduction of emissions.

In-depth: how much emissions are embedded in trade?

Absolute emissions imported or exported by country

In the interactive map you see each country’s net imports or exports of CO₂ each year, as measured in tonnes of CO₂.

Countries which are net importers are shown in red (and given as positive values), with net exporters shown in blue (given as negative values).

Per capita emissions imported or exported by country

In the interactive map you see each country’s net imports or exports of CO₂per capita, measured in tonnes of CO₂ per person per year.

Countries which are net importers are shown in red (and given as positive values), with net exporters shown in blue (given as negative values).

Consumption-based CO₂ emissions by country

In the interactive map we see how consumption-based CO₂ emissions vary across the world.

Consumption-based CO₂ emissions per capita

In the visualization we show how consumption-based emissions corrected for population size – emissions per capita – varies across the world.

Hannah Ritchie (2019) - “How do CO2 emissions compare when we adjust for trade?” Published online at OurWorldInData.org. Retrieved from: 'https://ourworldindata.org/consumption-based-co2' [Online Resource]

@article{owid-consumption-based-co2,
    author = {Hannah Ritchie},
    title = {How do CO2 emissions compare when we adjust for trade?},
    journal = {Our World in Data},
    year = {2019},
    note = {https://ourworldindata.org/consumption-based-co2}
}

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