The Urgent Need for Comparable Emissions Data in Global Climate Action

The fight against climate change is no longer just about cutting emissions. It is now also about measuring them in a way that countries can understand and compare. A new report from the Organisation for Economic Co-operation and Development, prepared with the Climate Club and backed by institutions such as the OECD Economics Department and the Centre for Tax Policy and Administration, highlights a major gap. Countries are acting, but they are not always speaking the same "data language."

As governments introduce carbon taxes, emissions trading systems and new trade rules, their policies increasingly affect each other. A policy in one country can shift production or emissions to another. Without reliable and comparable data, it becomes difficult to judge whether global emissions are actually falling or just moving around.

Why Measuring Emissions Is So Complicated

At the centre of the issue is something called carbon intensity, which simply means emissions per unit of output. It can be measured for entire countries, industries, factories, or even individual products. Product-level data is becoming especially important because governments want to know how much carbon is embedded in goods that are traded across borders.

But this is easier said than done. The most accurate data comes directly from factories, using detailed measurements. However, collecting this information is expensive and technically demanding. Many countries and companies instead rely on estimates or averages. These are cheaper but less precise, creating a trade-off between accuracy and practicality.

Different Systems, Different Results

One of the biggest challenges is that countries measure emissions in very different ways. Some systems include only carbon dioxide, while others cover multiple greenhouse gases. Some rely on real-time monitoring technology, while others use calculations based on fuel use and standard emission factors.

Even the boundaries of what is counted can differ. For example, one country may include emissions from electricity use, while another may not. As a result, two companies making the same product in different countries can appear to have very different carbon footprints, even if their actual emissions are similar.

This lack of consistency makes it harder for governments to design fair policies and for businesses to compete on equal terms.

The Hidden Challenge of Product-Level Data

Things get even more complicated when trying to measure emissions at the product level. Many factories produce multiple goods, so their total emissions must be divided among different products. There is no single agreed-upon method for doing this.

Some approaches use physical measures like output volume, while others use market value. Each method gives different results. Without clear rules, companies may choose the approach that makes their emissions look lower, raising concerns about fairness and transparency.

Trust, Data Sharing and Global Cooperation

Beyond technical issues, the report highlights a deeper problem: trust. Emissions data can reveal sensitive business information, such as production methods and costs. Companies may be reluctant to share this data, especially across borders.

To solve this, the OECD suggests new ways of managing data. These include secure data-sharing platforms and systems where information is shared only with trusted parties. The idea is to make data accessible enough for policy use while still protecting confidential details.

Legal barriers also play a role. Different countries have different data protection laws and reporting rules. Aligning these systems, or at least recognising each other's standards, is key to improving cooperation.

A Practical Path Forward

The report makes it clear that countries do not need identical systems. Instead, they need systems that can work together. This means aligning key features such as what is measured, how it is calculated and how it is verified.

There may be upfront costs in improving systems and building trust, but the long-term benefits are significant. Better data can reduce reporting burdens, improve policy design and help countries work together more effectively.

In a world where climate policies are increasingly interconnected, having comparable and reliable emissions data is no longer optional. It is essential for making sure global climate action delivers real results.