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EIPOT Final Project Report - Stockholm Environment Institute

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ERA-NET SKEP <strong>Project</strong> <strong>EIPOT</strong> (www.eipot.eu)<br />

“Development of a methodology for the assessment of global environmental impacts of traded goods and services”<br />

2.3 Spatial dimension<br />

The third dimension is geography, which considers the spatial aspect of trade and the distribution of its<br />

impacts. Naturally, any method that aims to quantify and assess the impacts of international trade<br />

needs to be able to distinguish countries or regions of origin and destination as well as their economic<br />

structure and production technologies and efficiencies. The geographical scope and the number of<br />

countries and sectors considered is therefore an important factor in the evaluation of <strong>EIPOT</strong> methods.<br />

Furthermore, the method should be able to assess environmental pressures that cannot be allocated<br />

directly to countries, such as emissions of international transport by water and air.<br />

Although the original focus of the <strong>EIPOT</strong> project was to build a method for SKEP countries, we aim at<br />

formulating a more general framework that is in principle applicable to any country or region. One<br />

example is the Mediterranean region where a list of actions has been proposed for applying the<br />

consumption-based approach to GHG emissions (CP/RAC 2008). Ultimately, the feasibility of<br />

implementing a method in or for a particular country will depend on data availability. This issue is<br />

discussed in Chapter 5.<br />

2.4 Temporal dimension<br />

Time is the fourth dimension that needs to be considered. Temporal issues determine policy questions<br />

and in turn the choice of methodology or model that is able to address these questions. 9 The methods<br />

shown in Figure 2.1 are all ex-post approaches that use data from the past to enumerate previous<br />

environmental impacts. Often the results are used as an approximation for present time impacts of<br />

production or consumption. This is sufficient to establish the current hotspots of pressures or impacts<br />

and to devise environmental or SCP policies that address current production and consumption<br />

patterns. However, if the goal is to anticipate future impacts or test the effect of specific policies (such<br />

as taxation, trade tariffs, carbon trading, government spending), scenario or dynamic modelling or a<br />

combination of both needs to be employed. To cover this policy field, econometric and dynamic<br />

models with explicit coverage of international trade were included in the RACER analysis of the <strong>EIPOT</strong><br />

project (Lutter et al. 2008).<br />

2.5 Life cycles<br />

The fifth dimension concerns another system boundary aspect, namely the life cycle stages of traded<br />

goods. When performing a life cycle assessment of a product, upstream production impacts during the<br />

cradle-to-gate or cradle-to-shelf phase need to be included as well as downstream impacts during the<br />

use and disposal phase (cradle-to-grave). When comparing products, impacts in all life cycle stages<br />

should be considered. The lifetime of a product becomes important in its use phase and methods<br />

need to attribute impacts accordingly. With regard to trade, the use phase and/or disposal phase may<br />

be (partly) abroad, such as tourist trips or the export of waste to developing countries.<br />

At the macro and meso levels, there should be consistency between the stages. Where materials are<br />

recycled in the disposal stage and re-enter the production chain, this should be accounted for in the<br />

use of primary and secondary materials in the material stage.<br />

9<br />

Compare to the categorisation of tools for sustainability assessment by Ness et al. (2007).<br />

13

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