Recently CO2 emissions have increased rapidly in non-Annex B (developing) countries. But some of the CO2 emitted in non-Annex B is transferred from Annex B (developed countries) for consumption purposes, which are embodied in international trade. We calculate the CO2 emissions embodied in international trade among Japan, China, South Korea, USA and the Rest of the World (ROW) from 1995 to 2005. The calculation is conducted using an International Input-Output model that includes emissions from not only Japan, China, South Korea and USA but also from ROW. This model shows that international balance of embodied CO2 emissions of Japan are -344Mt CO2 in 1995, -289 Mt CO2 in 2000, -270 Mt CO2 in 2005 and those of China are +482 Mt CO2 in 1995, 411 Mt CO2 in 2000, 810 Mt CO2 in 2005 and those of USA are -144 Mt CO2 in 1995, -825 Mt CO2 in 2000, -931 Mt CO2 in 2005. These results reveal the embodied CO2 emissions in international trade are relatively large and their impact is crucial to the discussion of policy-making in post-2012 regimes. In order to take account of the CO2 emissions embodied in trade we emphasize the importance of the consumption principle as well as present production accounting principle.
