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🗞️ Driving the news: With over 25% of global greenhouse gas emissions embedded in international trade—and largely excluded from current climate reporting frameworks—two COP30 special envoys, Dr Arunabha Ghosh and Professor Laurence Tubiana, are calling for trade-related emissions to be addressed within global climate policy
• As preparations for COP30 intensify, both experts urge new multilateral frameworks to integrate trade and climate goals, while ensuring equity and cooperation
🔭 The context: Since the 1992 Rio Convention, climate commitments under the UNFCCC have been based on territorial emissions
• However, globalization has increasingly shifted emissions beyond national borders, particularly through trade. The EU, for instance, imports nearly 40% of its total GHG footprint
• As unilateral measures like the EU’s Carbon Border Adjustment Mechanism (CBAM) gain momentum, developing countries face challenges in adapting to complex carbon accounting standards—raising concerns about equity, trade fairness, and developmental impacts
🌍 Why it matters for the planet: Failing to address emissions embedded in trade weakens the integrity of national climate goals and risks outsourcing pollution to lower-income countries
• Properly integrating these emissions into climate planning could help unlock finance for greener supply chains, promote cleaner manufacturing, and drive global decarbonization
• But without safeguards, such measures may deepen trade inequalities and hinder just transitions in the Global South
⏭️ What's next: Experts suggest that countries start by incorporating embedded emissions into their Nationally Determined Contributions (NDCs), setting sectoral targets, investing in carbon traceability infrastructure, and promoting low-carbon exports
• Bilateral dialogues—such as between the EU and India—could lead the way, especially in emissions-intensive sectors like metals and chemicals
• However, progress will depend on clear definitions, transparency, and international cooperation, particularly to support capacity-building in developing economies
• COP30 discussions may not yet fully integrate embedded emissions, but momentum is growing for their inclusion in future climate-trade governance
💬 One quote: “Countries must recognise their imports are driving their trade partners’ emissions. This can be the start of bilateral conversations on support to reduce embedded emissions.” — Prof. Laurence Tubiana, COP30 Special Envoy
📈 One stat: ~25% of global GHG emissions are embedded in international trade, yet remain outside formal climate reporting systems
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