1. Measuring Carbon Dioxide Emissions Embodied in Consumption Paris, November 2010 Contact: nadim.ahmad@oecd.org

2. Overview Policy drivers: –Production versus Consumption (Supplementary index). –Equity

3. Background – Where are we now? 40% increase in CO2 emissions between 1990 and 2007. ¼ from OECD economies, but over half from China alone; whose emissions trebled over the period – partly in response to domestic demand but also for OECD consumers. –Chinas share of US and Japanese imported goods up from 6.5 and 11% in 1995 to 15.5 and 21% in 2005. Much of this in products with high CO2 emissions. OECDs trade balance fallen from broad balance in 1995 to $1.1 trillion deficit in 2005.

4. Methodology Objective – to allocate emissions (embodied) to final domestic consumption. Starting point: 3 global IO tables for 1995, 2000 and 2005 for 47 countries. – 95% of global GDP and 85% of emissions. And CO 2 emissions by sector from the IEA

5. +32 OECD countries + 15 non-members (G20, BRIICS, ASEAN6,NAFTA, accession countries, other EU members) History 1995ed: 10 countries (1970-1990) 2002ed: 24 countries for mid90s 2006ed & current: mid90s-2005 Format Inter-industry transactions (48 sectors) ISIC 3 harmonized classification Import &domestic inputs are separated Database and sample indicators are available at OECD.Stat www.oecd.org/sti/inputoutput OECD Input-Output Database

6. Country Original Source data Actual tables used in the global OECD IO table Country Original Source data Actual tables used in the global OECD IO table mid90s early 2000s mid 2000s mid90s early 2000s mid 2000s mid90s early 2000s mid 2000s mid90s early 2000s mid 2000s Australia 1994/952001/022004/05199420012004Poland199520002005199520002005 Austria 199520002005199520002005Portugal199520002005199520002005 Belgium 199520002005199520002005 Slovak Republic 199520002005199520002005 Canada 199520002005199520002005Slovenia199620002005199620002005 Czech Republic 199520002005199520002005Spain199520002005199520002005 Chile 1996na2003199620002005Sweden199520002005199520002005 Denmark 199520002005199520002005Switzerlandna2001na199520002005 Estonia 199520002005199520002005Turkey199619982002199620002005 Finland 199520002005199520002005 United Kingdom 199520002005199520002005 France 199520002005199520002005United States199520002005199520002005 Germany 199520002005199520002005Argentina1997na 199520002005 Greece 199520002005199520002005Brazil199520002005199520002005 Hungary 199820002005199520002005China199520002005199520002005 Ireland 199820002005199520002005Chinese Taipei199620012006199620012006 Israel 1995na2004199520002004India1993/941998/992006/071993/941998/992006/07 Italy 199520002005199520002005Indonesia199520002005199520002005 Japan 199520002005199520002005Malaysia19952000na199520002005 Korea 199520002005199520002005Philippines19952000na199520002005 Luxembourg 199520002005199520002005Romaniana20002005199520002005 Mexico na 2003199520002005Russia19952000na199520002005 Netherlands 199520002005199520002005Singapore199520002005199520002005 New Zealand 1995/962002/03na1995/9620002005South Africa199320002005199320002005 Norway 199520002005199520002005Thailand199520002005199520002005 Viet Namna2000na199520002005

7. Methodology Very simple approach: A1A1 M 21 M 31 M 41 M 51 M 12 A2A2 M 32 M 42 M 52 M 13 M 23 A3A3 M 43 M 53 M 14 M 24 M 34 A4A4 M 54 M 15 M 25 M 35 M 45 A5A5

8. Imported emissions embodied in final consumption-% of total consumption

9. CO 2 emissions from domestic consumption and production – Mt US per capita emissions from production 5 * Chinas in 2005 but 6 * higher with consumption

10. Trade balance in CO 2 emissions (domestic production minus domestic consumption) percentage of global emissions 1995 - 2005 Perspective: Higher than total emissions in Germany and growth in deficit between 1995 and 2005 equal to another UK

11. CO 2 emissions: tonnes per capita - domestic production and domestic consumption No change in per capita emissions in production between 2000 and 2005 but 2% increase in emissions embodied in consumption Difference in consumption and Production = 30% of per capita emissions in R.O.W

12. Not just a question of Trade surplus/deficits either: Trade in goods balances and CO 2 balances (2005)

13. China: Emissions from China embodied in imports: % of total consumption

14. Per capita Changes in Domestic Consumption of CO 2 emissions broken down by emission source between 1995 and 2005

15. Emissions embodied in HHFC: Mt per capita, 2005

16. CO 2 emissions in Households per unit of Household disposable constant 2000 PPPs, Mt CO2,

17. On-going work Emissions from unallocated autoproducers Emissions from the rest of the world Conceptual challenges relating to emissions embodied in investment and inventories. Focus on final consumption (households and government). Projection into recent years and back to 1990.