How Trade Fuels Global Carbon Leakage

Advanced economies say they are on the pathway to net-zero emissions, but are they just outsourcing goods production and the associated emissions to poorer countries while importing the goods for the benefit of their consumers and businesses?

Published by
Pragmatic Policy Group LLC

Independent economic research & policy analysis.

Commissioned by
GrowSF

Civic advocacy for San Francisco’s future.

TradeWorthy
Contents
Key findings at a glance

International Trade & Carbon Emissions

Understanding Carbon Emissions Embodied in Global Trade

Advanced economies say they are on the pathway to net-zero emissions, but are they just outsourcing goods production and the associated emissions to poorer countries while importing the goods for the benefit of their consumers and businesses?

How many tons of carbon were actually emitted somewhere in the world to make your fridge, washing machine or microwave?

TradeWorthy commissioned PPG to analyze the volume of carbon emissions ‘embodied’ in the goods we buy from overseas.

354M t

CO₂ embodied each year in Chinese goods exported to the U.S.

53M t

CO₂ embodied each year in U.S. goods exported to China

176M t

CO₂ embodied each year in Canadian goods exported to the U.S.

74M t

CO₂ embodied each year in U.S. goods exported to Canada

132M t

CO₂ embodied each year in Mexican goods exported to the U.S.

57M t

CO₂ embodied each year in U.S. goods exported to Mexico

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