Embedded emissions
Encyclopedia
One way of attributing greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...

 (GHG) emissions is to measure the embedded emissions of goods that are being consumed (also referred to as "embodied emissions"). This is different from the question of to what extent the policies of one country to reduce emissions affect emissions in other countries (the "spillover effect" and "carbon leakage
Carbon leakage
Carbon leakage occurs when there is an increase in carbon dioxide emissions in one country as a result of an emissions reduction by a second country with a strict climate policy.Carbon leakage may occur for a number of reasons:...

" of an emissions reduction policy). The UNFCCC measures emissions according to production, rather than consumption (UK Parliament, 2010). Consequently, embedded emissions on imported goods are attributed to the exporting, rather than the importing, country. The question of whether to measure emissions on production instead of consumption is partly an issue of equity, i.e., who is responsible for emissions (Toth et al., 2001, p. 670).

The 37 Kyoto Protocol
Kyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...

 Parties, listed in Annex B of the treaty, have agreed to legally binding emission reduction commitments. Under the UNFCCC accounting of emissions, their emission reduction commitments do not include emissions attributable to their imports. In a briefing note, Wang and Watson (2007) asked the question, "who owns China's carbon emissions?" In their study, they suggested that nearly a quarter of China's CO2 emissions might be a result of its production of goods for export, primarily to the USA but also to Europe. Based on this, they suggested that international negotiations based on within country emissions (i.e., emissions measured by production) may be "[missing] the point."

Recent research confirms that, in 2004, 23% of global emissions were embedded in goods traded internationally, mostly flowing from China and other developing countries to the U.S., Europe and Japan.
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