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International Trade and Global Greenhouse Gas Emissions: Could Shifting the Location of Production Bring GHG benefits?
This report analyzes the greenhouse gas (GHG) emissions embodied in international trade and explores whether shifting production to lower-intensity regions could reduce global emissions. Using MRIO models and IEA data, the authors find significant variations in GHG intensity for products like clothing (up to a factor of five) and steel. Specifically, Brazil and Turkey are highlighted as low-intensity steel producers due to their energy mixes and technologies. While shifting production to regions with better access to low-GHG energy (such as the Americas for steel) offers potential benefits, the report notes that implementing trade policies to steer these flows is complicated by WTO laws and administrative challenges.
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Document type: Report