Countries Urged to Address Imported Emissions in Climate Plans

What's Happening?

As the global community prepares for COP30, there is a growing call for countries to address imported emissions within their climate strategies. The Paris Agreement, while comprehensive, has largely focused on territorial emissions, overlooking the significant greenhouse gas emissions embedded in international trade. G20 economies, responsible for a large portion of these emissions, are being urged to incorporate trade-related emissions into their nationally determined contributions (NDCs). This includes setting targets for reducing the carbon intensity of traded goods and enhancing carbon accounting and traceability systems.

Why It's Important?

Addressing imported emissions is crucial for achieving global decarbonization goals. As countries like those in the EU import a significant portion of their emissions, failing to account for these could undermine efforts to combat climate change. By including trade-related emissions in climate plans, countries can promote cleaner supply chains and support the competitiveness of low-carbon industries. This approach also highlights the interconnectedness of global economies and the need for collaborative efforts to reduce emissions across borders.

What's Next?

Countries are expected to refine their NDCs to include strategies for managing imported emissions. This may involve setting sector-specific targets and developing new trade frameworks that incentivize reductions in industrial emissions. As mechanisms like the Carbon Border Adjustment Mechanism gain traction, there will be a need for international cooperation to ensure fair and effective implementation. Developing countries, in particular, may require support to build the necessary infrastructure for carbon accounting and to meet new trade requirements.