Indicator 9.4.1 CO2 emission per unit of value added

Indicator 9.4.1: CO₂ emission 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

International Energy Agency (IEA)

United Nations Industrial Development Organization (UNIDO)

Definitions:

Carbon dioxide (here after, CO₂) emissions per unit of 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)).

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 feedstocks;
• 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 (IRES)). CO₂ emissions need to be estimated based on energy data and on internationally agreed methodologies (2006 IPCC Guidelines for National GHG Inventories).

The IEA collects national energy data, according to internationally agreed energy statistics definitions and estimates CO₂ emissions based on the 2006 IPCC Guidelines for National GHG Inventories’ Tier 1 methodology, producing internationally comparable CO₂ emissions data for over 150 countries and regions.

The gross value added measures the contribution to the economy of each individual producer, industry or sector in a country. The gross value added generated by any unit engaged in production activity can be calculated as the residual of the units’ total output less intermediate consumption, goods and services used up in the process of producing the output, or as the sum of the factor incomes generated by the production process (System of National Accounts 2008). Manufacturing refers to industries belonging to the sector C defined by International Standard Industrial Classification of All Economic Activities (ISIC) Revision 4, or D defined by ISIC Revision 3.

GDP represents the sum of gross value added from all institutional units resident in the economy. For the purpose on comparability over time and across countries, GDP based on purchasing power parity (PPP) is used to calculate the total CO₂ emissions intensity of the economy. MVA is estimated in terms of constant prices in USD. The current series are given at constant prices of 2015.

• CO₂ emissions from fuel combustion: millions of tonnes
• CO₂ emissions per unit of GDP PPP: kilogrammes of CO₂ per constant 2017 USD PPP
• CO₂ emissions from manufacturing industries per unit of MVA: kilogrammes of CO₂ per constant 2015 USD

Data on total CO₂ emissions from fuel combustion, also disaggregated by sector, are taken from the International Energy Agency (IEA) Greenhouse Gas Emissions from Energy database available at: (https://www.iea.org/data-and-statistics/data-product/greenhouse-gas-emissions-from-energy).

The IEA produces the indicator on total CO₂ emissions/GDP, based on secondary sources for GDP (International Monetary Fund. World Economic Outlook (IMF WEO), World Bank Development indicators and CEPII – CHELEM database).

UNIDO maintains the National Accounts database. Data are obtained from national account estimates produced by UN Statistics Division (UNSD) and from national publications.

International Energy Agency (IEA), United Nations Statistics Division (UNSD), United Nations Industrial Development Organization (UNIDO)

Description:

National Statistical Offices (NSOs) and national energy data collecting agencies provide the data to UNSD and IEA.

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.

CO₂ emissions from fuel combustion are estimated based on energy consumption and on the 2006 IPCC Guidelines on National GHG Inventories.

The total intensity of the economy is defined as the ratio of total CO₂ emissions from fuel combustion and per unit of GDP. For international comparison purposes, GDP is measured in constant terms at purchasing power parity and the indicator is expressed in kilogrammes of CO₂ per constant 2017 USD PPP for the current series.

The sectoral intensity is defined as CO₂ emission from manufacturing (in physical measurement unit such as tonnes) divided by manufacturing value added (MVA) in constant 2015 USD.

${CO}_2\mathrm{\ }emission\mathrm{\ }per\mathrm{\ }unit\mathrm{\ }of\mathrm{\ }value\mathrm{\ }added=\frac{CO2\mathrm{\ }emission\mathrm{\ }from\mathrm{\ }manufacturing\mathrm{\ }\left(in\mathrm{\ }kg\right)}{MVA\mathrm{\ }\left(constant\mathrm{\ }USD\right)}$

2024-06-28

International Energy Agency (IEA)

United Nations Industrial Development Organization (UNIDO)

Indicator 7.2.1: Renewable energy share in the total final energy consumption

Indicator 7.3.1: Energy intensity measured in terms of primary energy and GDP

Indicator 13.2.2: Total greenhouse gas emissions per year