Revealing embedded carbon emissions within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Abstract

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), representing approximately USD 13.5 trillion of the global GDP, is one of the largest free-trade agreements in the world. This trade agreement considers many important issues yet fails to address climate change or carbon dioxide (CO2) emissions. CO2 emissions in trade are critical as all CPTPP parties have made significant carbon emissions reduction commitments of between 8-36% through the COP21- Paris Agreement. Herein lies a paradox. This study assesses the amount of embedded CO2 emissions in the CPTPP through an input-output analysis of consumption-based emissions in ten carbon-intensive sectors, under three scenarios. The results reveal that as trade between partners increases, so will CO2 emissions across those sectors. These findings are essential for policymakers who are striving to grow Partnerships (Sustainable Development Goal 17) while seeking to address Climate Action (Sustainable Development Goal 13), which appear to be conflicting goals.