ECLAC Notes Number 66 - 0 views
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Ihering Alcoforado on 03 Dec 10Carbon Footprint May Deepen Latin AmericaTrade Vulnerability The emerging role of the carbon footprint as a tool for climate change mitigation for developed countries in line with their international commitments is increasing in importance, but its possible consequences for trade in Latin America are a long way from being fully understood and resolved. The carbon footprint refers to the amount of carbon dioxide (CO 2) emitted during the life-cycle of a product along the supply chain, and sometimes including end-of-life recovery and disposal. Overall, the region lacks consensus on the benefits of the carbon footprint, with some concerned about the possible hindrance to trade, while others see it as an opportunity. Since Latin America and the Caribbean has an export matrix heavily dependent on environmentally sensitive products, and thus would be affected by measures taken that discriminate products based on their carbon footprint, Latin American countries are concerned that the "carbon content" of goods may result in "protectionism". This is especially worrisome, since developing countries are hardly responsible for the vast majority of historical carbon emissions and emit far less per capita than developed nations. In addition, LAC has a wide range of products that are destined for the markets currently discussed in carbon footprint laws. For example, of Argentina's total global exports in 2008, 1,8 % correspond to vehicles to France, and of Brazil's total global exports in 2009, 0.6% correspond to coffee exports to Germany. These types of products are already included in the carbon footprint product families proposed by France and coffee in the products considered in Germany. Therefore, countries could incur increased cost or suffer from decreased international demand if their products are considered higher in carbon intensity at comparable prices. Other vulnerable sectors identified from the LAC region include textiles, salmon, frozen foods and flowers. Carbon