May 15, 2024

Sustainability, Resilience of Global Chains, and the Fight Against Climate Change: Are These Goals Compatible?

1 minute Read

TWIN SEEDS partners at Universidad de Castilla-La Mancha (UCLM) published a new article on the Spanish magazine TELOS.

Read the full article in Spanish here.

Reducing trade vulnerability and dependence is a strategic priority for the European Union. Strategies to bring back production offshored in previous decades are emerging as possible solutions. However, are these trends aligned with sustainability goals?

Reshoring production—whether as backshoring or nearshoring—requires reconfiguring global production chains, impacting income levels, employment, productivity, and carbon emissions. The choice of production locations and suppliers is crucial, as it significantly affects emission volumes. Therefore, decisions must consider the emissions intensity of each location or supplier.

Our calculations show that in 2018, a generic final product finished in China had a value chain that was, on average, 3.18 times more CO2-intensive than a similar product finished in the European Union. Reconfiguring global value chains can align with the fight against climate change if environmental concerns and carbon content are prioritised in firms' location and supply decisions and international trade.

Read the full article in Spanish here.

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