Consumption-Based Emissions Reporting

The UK’s reported greenhouse gas emissions have decreased since 1990, in line with our commitments under the Kyoto Protocol. However, it has been suggested that this is a result of the way that emissions are currently accounted for, which is on a production basis. Production-based emissions reporting only takes account of emissions produced physically within a particular territory. If a consumption-based accounting approach was to be used—that is, reporting the carbon embedded in all of the goods and services consumed within the UK—it is very likely that the emissions attributable to the UK would be shown to have been increasing.

It has been argued that the UK and the developed economies are partly responsible for the substantial and rapid increase in emissions from developing countries, as we outsource manufacturing and then import products. The scale of greenhouse gas emissions embedded in trade between countries has made negotiations on global emissions reductions difficult and complex.

This inquiry will explore whether there is a case for the adoption of consumption-based emissions reporting in the UK, whether it is feasible to do this in practice, whether emissions reduction targets might be adopted on a consumption basis, and what the implications for international negotiations on climate change might be if the UK, and others, took this approach. 

• Guidance on submitting written evidence to an Energy and Climate Change Committee inquiry

Terms of reference

The Committee will examine the case for consumption-based greenhouse gas emissions reporting in the UK. The Committee invites responses addressing some or all of the following questions:

• How do assessments of the UK’s greenhouse gas emissions differ when measured on a consumption rather than a production basis?
• Is it possible to develop a robust methodology for measuring emissions on a consumption rather than production basis and what are the challenges that need to be overcome to deliver this?
• What are the benefits and disadvantages associated with taking a consumption-based rather than production-based approach to greenhouse gas emissions accounting?
• Is there any evidence of industry relocating from the UK to other countries as a result of UK climate change policy?
• Would it be (a) desirable and (b) practicable for the UK to adopt emissions reduction targets on a consumption rather than production basis?
• What are the potential implications at the international level of the UK adopting a consumption- rather than production-based approach to greenhouse gas emissions accounting?
• Are there any other issues relating to consumption-based emissions reporting that you think the Committee should be aware of?

The deadline for submission of written evidence is 25 October 2011.

Further information

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