Virtual Greenhouse Gas and Water Footprints Reduction: Emissions, Effluents and Water Flows Embodies in International Trade

Abstract

In the globalised world the greenhouse gas emission and water consumption are becoming increasingly important indicators for policy and decision making. Development of footprint assessment techniques over the last decade has provided a set of tools for monitoring CO2 emissions, effluents and water flows in the world. An overview of the virtual CO2 and virtual water flow trends in the international trade based on consumption perspective is performed. Review of the recent presented results indicates that: (1) They are significant CO2 gaps between producer’s and consumer’s emissions, and US and EU have high absolute net imports CO2 budget. (2) Asian countries have very sizable and growing population and have started to develop fast. Among top ten most populous countries in the world are China, India, United States, Indonesia, Brazil, Pakistan, Nigeria, Bangladesh, Russian Federation (partly Asian), Japan. Malaysia has also substantial population growth. Their impact on the environment as well as on the global footprint virtual trade of Asian is substantial and growing. (3) Namely China is a leading exporting country and increasingly carries a load of GHG emission, effluents and virtual water export that are triggered due to consumption in other importing countries. (4) By imported products that are produced with lower carbon emission intensity and less water consumption then in the domestic industry, international trade can reduce global environmental pressure.