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Labeling Emissions on Traded Goods

Decarbonizing the global economy requires a significant increase in the transparency of embedded emissions within internationally traded products. In the same way that consumers are able to make informed choices based on the mandatory nutrient information of supermarket products, we are rapidly moving towards product-level emissions accountability. This not-too-distant future involves consumers that are empowered to make decisions based on the carbon-intensity of different products. Product emissions reporting is already a fast-approaching reality for many industrial sectors due to regulations such as the EU’s Carbon Border Adjustment Mechanism and similar emerging legislation across the world. These policies will drive products such as aluminum, steel, hydrogen and fertilizer to communicate their embedded emissions content to regulators and consumers. In order to achieve this, producers will need to provide consumers with trustworthy and easy-to-understand information on the emissions intensity of their supply chains.