Current emission pledges to the Paris Agreement appear insufficient to hold the global average temperature increase to well below 2 °C above pre-industrial levels. Yet, details are missing on how to track progress towards the ‘Paris goal’, inform the five-yearly ‘global stocktake’, and increase the ambition of Nationally Determined Contributions (NDCs). We develop a nested structure of key indicators to track progress through time.

CO2 emissions from the burning of fossil fuels are conventionally attributed to the country where the emissions are produced (i.e., where the fuels are burned). However, these production-based accounts represent a single point in the value chain of fossil fuels, which may have been extracted elsewhere and may be used to provide goods or services to consumers elsewhere.

Despite the emergence of regional climate policies, growth in global CO2 emissions has remained strong. From 1990 to 2008 CO2 emissions in developed countries (defined as countries with emission-reduction commitments in the Kyoto Protocol, Annex B) have stabilized, but emissions in developing countries (non-Annex B) have doubled.

Almost one-quarter of carbon dioxide released to the atmosphere is emitted in the production of internationally traded goods and services. Trade therefore represents an unrivalled, and unused, tool for reducing greenhouse gas emissions.