The rise of South–South trade and its effect on global CO2 emissions

• Published in: Nature communications Vol. 9; no. 1; pp. 1 - 7
• Main Authors: Meng, Jing, Mi, Zhifu, Guan, Dabo, Li, Jiashuo, Tao, Shu, Li, Yuan, Feng, Kuishuang, Liu, Junfeng, Liu, Zhu, Wang, Xuejun, Zhang, Qiang, Davis, Steven J.
• Format: Journal Article
• Language: English
• Published: London Nature Publishing Group UK 14.05.2018; Nature Publishing Group; Nature Portfolio
• Subjects: 704/106/694; 704/844/2175; 704/844/843; 706/134; Carbon dioxide; Carbon dioxide emissions; Developed countries; Developing countries; Exports; Globalization; Humanities and Social Sciences; International trade; LDCs; multidisciplinary; Raw materials; Science; Science (multidisciplinary); Southern Hemisphere; Supply chains; China
• ISSN: 2041-1723; 2041-1723
• DOI: 10.1038/s41467-018-04337-y

Economic globalization and concomitant growth in international trade since the late 1990s have profoundly reorganized global production activities and related CO 2 emissions. Here we show trade among developing nations (i.e., South–South trade) has more than doubled between 2004 and 2011, which reflects a new phase of globalization. Some production activities are relocating from China and India to other developing countries, particularly raw materials and intermediate goods production in energy-intensive sectors. In turn, the growth of CO 2 emissions embodied in Chinese exports has slowed or reversed, while the emissions embodied in exports from less-developed regions such as Vietnam and Bangladesh have surged. Although China’s emissions may be peaking, ever more complex supply chains are distributing energy-intensive industries and their CO 2 emissions throughout the global South. This trend may seriously undermine international efforts to reduce global emissions that increasingly rely on rallying voluntary contributions of more, smaller, and less-developed nations. The rapid growth of South–South trade reflects a new phase of globalization. Here the authors show that some energy-intensive production activities, particularly raw materials and intermediate goods, and related CO 2 emissions are relocating from China and India to other developing countries.