Emissions from UK consumption
For the purpose of reporting emissions to meet international reporting obligations and under the UK’s Climate Change Act, the UK reports emissions on what is called a territorial basis. That means that only emissions that occur within the territorial boundaries of the UK are included.
However, Defra also publishes details of the UK’s carbon footprint – in other words, estimated emissions on a consumption basis. These are also sometimes referred to as embedded emissions. This measure includes any emissions associated with the consumption of goods and services by households in the UK, wherever in the world those emissions occur. At the same time, these estimates exclude any emissions occurring within the UK that are associated with the consumption of goods and services by households outside the UK.
Measured on a consumption basis, the UK’s emissions look quite different. Whilst emissions measured in this way have reduced since 1990 in the same way as territorial emissions, emissions measured on a consumption basis are significantly higher. This reflects the fact that the emissions embedded in the goods and services that the UK imports are greater than those embedded in those that it exports.
In 2021, the latest year for which Defra have published figures, emissions measured on a consumption basis were 67% greater than those measured on a territorial basis. As the UK economy has gradually moved away from manufacturing towards the services sector, more of the goods and services we buy and use now come from overseas. Although those overseas economies are now decarbonising in the same way that the UK economy is and the gap between territorial and consumption based emissions has become steadier, it is still significant.
It is important to note that there are greater uncertainties around these estimates than around estimates of emissions on a territorial basis.
However, Defra also publishes details of the UK’s carbon footprint – in other words, estimated emissions on a consumption basis. These are also sometimes referred to as embedded emissions. This measure includes any emissions associated with the consumption of goods and services by households in the UK, wherever in the world those emissions occur. At the same time, these estimates exclude any emissions occurring within the UK that are associated with the consumption of goods and services by households outside the UK.
Measured on a consumption basis, the UK’s emissions look quite different. Whilst emissions measured in this way have reduced since 1990 in the same way as territorial emissions, emissions measured on a consumption basis are significantly higher. This reflects the fact that the emissions embedded in the goods and services that the UK imports are greater than those embedded in those that it exports.
In 2021, the latest year for which Defra have published figures, emissions measured on a consumption basis were 67% greater than those measured on a territorial basis. As the UK economy has gradually moved away from manufacturing towards the services sector, more of the goods and services we buy and use now come from overseas. Although those overseas economies are now decarbonising in the same way that the UK economy is and the gap between territorial and consumption based emissions has become steadier, it is still significant.
It is important to note that there are greater uncertainties around these estimates than around estimates of emissions on a territorial basis.