Accounting for carbon at the point of consumption Prof. John Barrett University of Leeds October 13 th, 2011

Toy Production

Toy Consumption

Scale of Traded Emissions - Global Source: University of Leeds

Scale of Traded Emissions - National Source: University of Leeds

Scale of Traded Emissions - Sector China USA UK Share of domestic consumption by country of origin of steel Source: University of Leeds

Global Emissions captured in trading schemes Source: University of Leeds

CO2 or GHG Emissions Source: University of Leeds

Capturing Carbon in Trade Source: University of Leeds

Best Available Technologies Source: University of Leeds

What Counts? All embodied emissions (8% difference “Real” emissions, not false assumptions (10% difference) Inclusion of the US and Japan in domestic schemes (15% difference) What doesn’t count Least developed countries (under 1%) Full GHG emissions (at least for existing sectors) (under 2%)

Challenges Complex carbon accounting system that is robust Difficulty of border carbon adjustments that would make a difference