What are imported emissions and why is the UK missing a trick by not reducing them?
What are imported emissions?
In the UK, we create emissions every day: when using gas in our boilers, petrol in our vehicles and electricity in our buildings.
These are the UK’s territorial emissions. They are covered in the government’s targets, including the 2050 net zero target.
Thanks to the phase out of coal in the UK and increase in renewable electricity over the last decades, these have started to reduce (1).
But we also import products and services from abroad, and other countries create emissions when they make these things for us. We call these imported emissions.
Most countries still use fossil fuels in their factories, buildings and energy systems, which means that our imports create emissions in other countries.
These imported emissions make up 43% of the UK’s total carbon footprint, which is known as its consumption emissions (2).
Imported emissions are not included in any of the UK’s targets, including the current net zero target, and have stayed consistently high in the last decade (3).
Here’s a recap of definitions
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All the greenhouse gas emissions generated within national borders.
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All the greenhouse gas emissions generated in meeting a country's demands for goods and services. This includes emissions arising locally for domestic consumption and those generated abroad in the production and transport of imported goods.
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The share of consumption emissions generated abroad.
Our proportion of imported emissions compared to our consumption emissions (overall footprint) is the highest in the G7 (4).
This means that we are well-positioned to take leadership on reducing imported emissions. That’s because these imported emissions are more important relative to the size of the UK’s total footprint compared to other countries’ footprint.
Where do the UK’s imported emissions come from?
How are imported emissions created?
Fossil fuel mining, extracting and treatment is the biggest cause, followed by the production of electricity, gas, water and waste.
Next biggest is agriculture, forestry and fishing. For example, when we import food, emissions are created by tractors and farming systems worldwide.
The fourth biggest source are emissions from the transportation and storage of goods before they reach the UK. Ships bringing goods from the USA to Liverpool, for example, will most likely run on diesel.
Where are imported emissions are created?
China, Russia and the USA are the top three sources of these imported emissions. UK imports from these countries are responsible for over a quarter of all UK imported emissions. These countries remain heavily dependent on the use of fossil fuels.
Our imports from China are responsible for more emissions than the entire UK agricultural sector (5) and most were from manufacturing products.
Imported emissions from Russia will no doubt have reduced as a result of recent sanctions, but data is not yet available (see more in “The fine print” section at the bottom of this page).
Why are imported emissions created?
Imported goods and services are used by UK businesses and sectors. UK manufacturing and construction sectors are the biggest contributors of imported emissions.
For example, imported steel is used in the UK construction industry
Are we missing a trick by not reducing these imported emissions?
80+% of imported emissions are produced in countries with less stringent domestic climate actions and targets than the UK.
We are missing an opportunity to reduce emissions globally and support prosperous low-carbon industries to develop in the UK and abroad.
The UK's climate actions, targets and finance are rated "almost sufficient" by Climate Action Tracker but 80% of the UK's imported emissions are produced in countries deemed “insufficient” or worse. 40% are produced in countries whose climate action is deemed “critically” or “highly” insufficient.
Those countries taking “critically” and “highly” insufficient climate action maintain far worse working rights.
Supporting greener industrial processes in our imported goods can create improved working conditions while incentivising companies to lower their emissions.
Many countries and sectors do not protect their employees and workers well. Those countries taking “critically” and “highly” insufficient climate action maintain far worse working rights, according to the Global Rights Index.
As well as climate action being correlated with better working conditions, there will be instances where better climate practices directly cause better working conditions. For example, a company swapping from diesel to more efficient electric machinery reduces noise levels as well as harmful air pollutants, improving the quality of working conditions.
The UK spends £400bn annually importing goods from countries with less stringent domestic climate actions.
The current situation is bad from a domestic economic perspective and from an environmental one. Action on imported emissions could mean more money is spent on manufacturing jobs in the low-carbon industries of the future both in the UK and abroad.
We currently spend £500bn annually importing goods from abroad - that’s over £7,000 per person. By not taking responsibility for environmental standards within our supply chains, we are missing opportunities to use that purchasing power to develop and champion low carbon industry and infrastructure.
The current situation is bad from a domestic economic perspective, and an environmental one.
Cleaning up our imported emissions could reduce the amount of ‘offshored’ emissions and would create UK jobs in low-carbon industries like manufacturing, refurbishment, reuse and recycling.
Reducing imported emissions cleans up the environment and revives British manufacturing.
To recap: what can UK government action to reduce imported emissions achieve?
Help meet global climate goals
Improve working conditions worldwide
Increase manufacturing jobs in the low-carbon industries of the future in the UK and abroad
Help make this century one in which UK trade policy is used to progress global mitigation of further climate change
Reducing the UK’s imported emissions isn’t a pipe dream. There are many policies that the UK government could put in place.
Taking action on the heavy industrial practices causing many of the imported emissions includes a range of changes:
More repair, maintenance and refurbishment services to keep materials, goods and equipment in use for longer
Growing a “circular economy”: one that re-uses and recycles high value goods and materials
Switching to electric furnaces and low carbon feedstocks in factories
There are many policies that could bring about these changes:
Applying the carbon pricing mechanisms that UK heavy industry is subject to, to imports of high-polluting products (Carbon Border Adjustment Mechanisms).
Tightening product standards to phase out and ban certain high-polluting products and services. Or set future targets to ban them by a certain date by which you expect new technologies to be available.
Investing in the build of infrastructure for material re-use and recycling within the UK and internationally, to reduce the need to import new. This creates jobs in material processing and treatment, and reduces waste pollution.
Increasing UK foreign direct investment and knowledge sharing in low-carbon businesses and initiatives to reduce industrial emissions.
Mandating emissions disclosure from overseas suppliers to help buyers move in the right direction.
What are we going to do about it?
And how can you help?
We’re going to explore the policy options for reducing imported emissions, and bring them to life with real examples of people, companies and countries.
Below we list just three ways to get involved, but get in touch here with other ideas for how we could work together.
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We aim to bring to life the different ways that the government can act on imported emissions to boost low-carbon industry. We want to do this through some examples of companies.
Your company might have delivered an impressive supply chain emission reduction. Or your company might have identified policies that are needed to unlock supply chain emission reductions across the industry. Maybe there are challenges, barriers and opportunities in reducing emissions from your purchases and activities abroad that the government should know about?
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We want to harness the latest carbon accounting methods and technologies to unlock the best policies that reduce emissions and support low-carbon industry.
Share your expertise in the technologies and processes for measuring supply chain emissions and at the same time boost your knowledge of supply chain regulations that will affect your clients.
The fine print
Want to know the details? Read our methodology page for even more data, some detail about our methodology, and some further reading.
References
(1) WWF-UK and University of Leeds, 2020, Carbon Footprint: Exploring the UK's Contribution to Climate Change, link
(2) Climate Change Committee, 2022, Progress in reducing emissions 2022: Report to Parliament, link
(3) WWF-UK and University of Leeds, 2020, ibid
(4) John Barrett and Alice Garvey, 2022, Mapping Emissions In An Industrial World in Greta Thunberg et al. 2022, The Climate Book
(5) UK Government, 2022, 2020 UK Greenhouse Gas Emissions, Final Figures, link