Greenhouse Gas Emissions embedded in agricultural trade: implications and potential opportunities for Asia-Pacific

Greenhouse Gas (GHG) emissions are the main driving force of climate change, and all economic sectors need to internalize their costs. Food systems (including land use, production, refrigeration, food processing) account for a quarter of global GHG emissions. Agricultural exports in Asia-Pacific account for 18% of total exports, twice as much as in the rest of the world. Pacific Island Developing States (PIDS) and New Zealand, are particularly reliant on trade in agriculture. Agricultural export shares of many PIDS significantly exceed the global average of 9%, while New Zealand agricultural exports account for 31% of its total exports. This study sought to estimate the CO2-equivalent content of agricultural trade in Asia and the Pacific, and examine the ramifications of potential carbon tariffs, such as the European Union’s Carbon Border Adjustment Mechanism as well as global carbon tariffs, using partial equilibrium analysis.