The consumption-based approach to GHG emissions: a strategic tool for mitigating climate change

Therefore, with a post-Kyoto scenario in mind, it is essential to use new approaches for gaining complementary insights on where the sources of greenhouse gas emissions lie, in order to better tackle climate change.

To complement the current approach that calculates a country’s emissions from domestic production, one can use a consumption perspective to analyse the sources of GHG emissions related to consumer goods and services, produced either domestically or abroad. This so-called consumption-based approach to GHG emissions provides a new framework to analyse trends and sources of emissions. Using input-output analysis, it shows us the interlinkages between different production sectors and countries in terms of GHG emissions, and allows us to assess how different consumption patterns affect climate change, including trade, international transport, tourism and other aspects not properly addressed by the Kyoto regime.

Analysing GHG emissions from consumption is key to understand an ever global economy, along with increasingly international value chains. Accordingly, the consumption-based approach makes for an invaluable instrument for designing policies and strategies to both mitigate climate change and move towards sustainable consumption and production.