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9.4.1 Carbon Dioxide Emissions per Unit of Value Added

Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Custodian Organization: International Energy Agency (IEA) & United Nations Industrial Development Organization (UNIDO)

Tier Classification: Tier I

To facilitate the implementation of the global indicator framework, all indicators are classified by the IAEG-SDGs (Inter-Agency and Expert Group on Sustainable Development Goals Indicators) into three tiers on the basis of their level of methodological development and the availability of data at the global level, as follows:

Tier I: Indicator is conceptually clear, has an internationally established methodology and standards are available, and data are regularly produced by countries for at least 50 per cent of countries and of the population in every region where the indicator is relevant.

Tier II: Indicator is conceptually clear, has an internationally established methodology and standards are available, but data are not regularly produced by countries.

Tier III: No internationally established methodology or standards are yet available for the indicator, but methodology/standards are being (or will be) developed or tested.

Source: United Nations Statistical Division

Definition: Carbon dioxide (here after, CO2) emissions per unit value added is an indicator computed as ratio between CO2 emissions from fuel combustion and the value added of associated economic activities. The indicator can be computed for the whole economy (total CO2 emissions/GDP) or for specific sectors, notably the manufacturing sector (CO2 emissions from manufacturing industries per manufacturing value added (MVA).

CO2 emissions per unit of GDP are expressed in kilogrammes of CO2 per USD constant 2010 PPP GDP. CO2 emissions from manufacturing industries per unit of MVA are measured in kilogrammes of CO2 equivalent per unit of MVA in constant 2010 USD.

Concepts: Total CO2 emissions for an economy are estimated based on energy consumption data for all sectors.

CO2 emissions from manufacturing are based on energy data collected across the following subsectors (energy used for transport by industry is not included here but reported under transport):

  • Iron and steel industry [ISIC Group 241 and Class 2431];
  • Chemical and petrochemical industry [ISIC Divisions 20 and 21] excluding petrochemical feed stock;
  • Non-ferrous metals basic industries [ISIC Group 242 and Class 2432];
  • Non-metallic minerals such as glass, ceramic, cement, etc. [ISIC Division 23];
  • Transport equipment [ISIC Divisions 29 and 30];
  • Machinery comprises fabricated metal products, machinery and equipment other than transport equipment [ISIC Divisions 25 to 28];
  • Food and tobacco [ISIC Divisions 10 to 12];
  • Paper, pulp and printing [ISIC Divisions 17 and 18];
  • Wood and wood products (other than pulp and paper) [ISIC Division 16];
  • Textile and leather [ISIC Divisions 13 to 15];
  • Non-specified (any manufacturing industry not included above) [ISIC Divisions 22, 31 and 32].

Energy data are collected at a country level, based on internationally agreed standards (UN International Recommendations on Energy Statistics). CO2 emissions need to be estimated based on energy data and on internationally agreed methodologies (IPCC Guidelines for GHG inventories).

The IEA collects national energy data, according to internationally agreed energy statistics definitions and estimates CO2 emissions based on the IPCC Guidelines for GHG inventories Tier 1 methodology, producing internationally comparable CO2 emissions data for over 150 countries and regions.

The gross value added is defined as output minus intermediate consumption and equals the sum of employee compensation, gross operating surplus of government and corporations, gross mixed income of unincorporated enterprises and taxes less subsidies on production and imports, except for net taxes on products (System of National Accounts 2008). Manufacturing refers to industries belonging to the sector C defined by ISIC Revision 4, or D defined by ISIC Revision 3.

Rationale: The indicator CO2 emissions per unit of value added represents the amount of emissions from fuel combustion produced by an economic activity, per unit of economic output. When computed for the whole economy, it combines effects of the average carbon intensity of the energy mix (linked to the shares of the various fossil fuels in the total); of the structure of an economy (linked to the relative weight of more or less energy-intensive sectors); of the average efficiency in the use of energy. When computed for the manufacturing sector (CO2 emissions from fuel combustion per unit of manufacturing value added), it measures the carbon intensity of the manufacturing economic output, and its trends result from changes in the average carbon intensity of the energy mix used, in the structure of the manufacturing sector, in the energy efficiency of production technologies in each sub-sector, and in the economic value of the various output.. Manufacturing industries are generally improving their emission intensity as countries move to higher levels of industrialization, but it should be noted that emission intensities can also be reduced through structural changes and product diversification in manufacturing.

CO2 emission accounts for around 80% of all GHG emission from the manufacturing processes.

Limitations: Estimation of CO2 emission data is not systematized in many countries, although is performed internationally based on harmonised energy data collected at national level. Energy data collection is generally well established, although in some cases national methodologies may differ from internationally agreed methodologies. National data sources include statistical offices, Energy Ministries, Environment agencies, among others. Energy consumption data and value added data are coming from different data sources which may raise some consistency issues.

Source: United Nations Statistical Division

Data Source: Data for this indicator was primarily collected from the United Nations Statistics Division’s Open SDG Data Hub. National level data is provided to the United Nations Statistics Division by the respective nation, unless otherwise noted. To learn more about the data used in this portal, visit the about page.

Data is accurate as of October 31, 2018.

9.4.1 Carbon Dioxide Emissions per Unit of Value Added

 
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9.4.1 Carbon Dioxide Emissions per Unit of Value Added Sustainable Development Goals

9. Build resilient infrastructure, promote sustainable industrialization and foster innovation
9. Build resilient infrastructure, promote sustainable industrialization and foster innovation

9. Build resilient infrastructure, promote sustainable industrialization and foster innovation

Investments in infrastructure – transport, irrigation, energy and information and communication technology – are crucial to achieving sustainable development and empowering communities in many countries. It has long been recognized that growth in productivity and incomes, and improvements in health and education outcomes require investment in infrastructure.

Inclusive and sustainable industrial development is the primary source of income generation, allows for rapid and sustained increases in living standards for all people, and provides the technological solutions to environmentally sound industrialization.

Technological progress is the foundation of efforts to achieve environmental objectives, such as increased resource and energy-efficiency. Without technology and innovation, industrialization will not happen, and without industrialization, development will not happen.

Related 9.4.1 Carbon Dioxide Emissions per Unit of Value Added Targets

9.4

By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities