The Devil in the Deal: Trade Embedded Emissions and the Durban Platform

Abstract

Several commentators have expressed concern that the Durban Platform does not include more specific language about the need for equitable mitigation efforts. Meanwhile, other commentators have argued that the differentiated approach adopted by the Kyoto Protocol set up an opposition between the developed and developing nations; resulting in an impasse which has prevented the achievement of adequately ambitious, agreeable and binding mitigation commitments. In this commentary I propose that the political impasse is not due to the equity track per se, but rather to the territorial and production-based accounting system upon which it was built. Under the UNFCCC, parties are required to provide inventories of GHG emissions within their national borders. There are several problems with this method, but most important given the argument here, is that the production-approach has resulted in a significant misrepresentation of the total climate impact of developed nations. Because GHG emissions are not confined by geopolitical borders, it is important to understand the climate impact of contemporary consumption and trade, regardless of where emissions are produced. I argue that supplementing production-based accounting with a consideration of the emissions embedded in trade has the potential to provide a more agreeable and politically viable path for closing the ambition gap and ensuring equity.