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Existing international emissions reduction policies are not sufficient to meet the internationally agreed objective of limiting average global temperature rise to ‘well below’ two degrees, resulting in an emissions gap. Materials - such as aluminium, cement, paper, plastics and steel - act as a carrier of industrial energy that allows, through trade, the transfer of embodied emissions between sectors and countries. However, the use of materials has been overshadowed by policies focusing on energy efficiency improvements and deployment of a low carbon energy supply. This article argues that policies based on material and product demand can support domestic climate change mitigation and reduce the emissions gap, yet there is little obvious integration between climate and material efficiency policies. The article investigates current ‘emissions flows’ through the EU economy and how much of these are captured and excluded from existing EU climate policies. We analyse the potential increase in emissions coverage that would be achieved by extending EU directives that currently target the energy use of products (cars, buildings and appliances) in operation, to include the emissions required to produce the goods (i.e. embodied emissions). The analysis shows that a greater integration of material efficiency strategies within climate change mitigation policy could significantly increase the emissions coverage of existing product policies. Key policy insights Consumption is a key driver of emissions and demand reduction is an important policy option in reducing emissions, at least in the short-term, to reduce the risks of a longer-term reliance on technology breakthroughs and while the EU carbon price remains low. Emissions embodied in material-intensive manufactured products consumed in the EU represent the equivalent of over 40% of EU production emissions, offering significant scope for emissions reductions along product supply chains. Consumption measures that target the use of materials and products offer complementary mitigation options to low carbon energy supply technologies alongside costs savings. Existing EU policies addressing the energy efficiency of products can be used to scale up material efficiency measures. [ABSTRACT FROM AUTHOR]

Global GHG emissions continue to rise, with nearly a quarter of it due to trade that is not currently captured within global climate policy. In the context of current trade patterns and limited global cooperation on climate change, the feasibility of consumption-based emissions accounting to contribute to a more comprehensive (national) policy framework in the UK is investigated. Consumption-based emissions results for the UK from a range of models are presented, their technical robustness is assessed, and their potential application in national climate policy is examined using examples of policies designed to reduce carbon leakage and to address high levels of consumption. It is shown that there is a need to include consumption-based emissions as a complementary indicator to the current approach of measuring territorial emissions. Methods are shown to be robust enough to measure progress on climate change and develop and inform mitigation policy. Finally, some suggestions are made for future policy-oriented research in the area of consumption-based accounting that will facilitate its application to policy. Policy relevance Emissions embodied in trade are rapidly increasing and there is thus a growing gap between production emissions and the emissions associated with consumption. This is a growing concern due to the absence of a global cap and significant variation in country-level mitigation ambitions. Robust measurements of consumption-based emissions are possible and provide new insights into policy options. This includes trade-related policy (e.g. border carbon adjustments) and domestic policies (e.g. resource efficiency strategies). As climate policy targets deepen, there is a need for a broad range of policy options in addition to production and technological solutions. Consumption-based emissions are complementary to production-based emissions inventories, which are still the most accurate estimate for aggregated emissions at the global level. However, without consumption-based approaches, territorial emissions alone will not provide a complete picture of progress in regional and national emissions reduction. [ABSTRACT FROM PUBLISHER]