Examine whether a consumption-based approach to climate responsibility serves the developmental interests of the Global South better than a production-based one.

Production-based accounting counts emissions where goods are made. Consumption-based accounting counts them where goods are finally used. The Global South makes much of the world's goods but uses little energy per person, so this choice decides who pays for climate action.

How a consumption-based approach serves development

• Moves embedded emissions: carbon in goods exported to rich countries would count against the importing country. This loosens caps on economies that are still industrialising.
• Puts CBDR-RC into practice: it places the burden on high-consumption lifestyles. This matches India's NDC pledge of a "climate friendly and cleaner path" than the one others followed at a similar stage of development [1].
• Protects development space: it fits intensity-based targets, such as India's 45% cut in emissions intensity of GDP from 2005 levels by 2030 [1], which leave room for energy use to grow.
• Counters trade measures: production-side tools like the EU's CBAM penalise exporters, while consumption accounting places responsibility on end-users.
• Fits India's narrative: Mission LiFE ("Lifestyle for Environment") is written into India's updated NDC [1].

Where it falls short

• The atmosphere counts totals: as the Global South's middle classes grow, their rising consumption will also show up in consumption accounts.
• Data gaps: tracing emissions through global supply chains is complex. National inventories such as BUR-4 are production-based [2].
• Domestic production still matters: emissions intensity fell about 36% between 2005 and 2020 [2], yet total emissions are still rising. Non-fossil sources crossed 50% of installed capacity in June 2025 [3], but that is capacity, not generation, and coal still dominates generation.
• Risk of collective inaction: if every country treats energy use as a purely national matter, the shared goal weakens. That hurts the climate-vulnerable South most.

Way forward

• Add consumption accounting as an extra metric in the Global Stocktake, not a replacement.
• Link it to finance and technology transfer, which India's NDC makes its targets conditional on [1].
• Protect coal-dependent regions at home through a just transition.

A consumption-based approach serves the Global South better on equity, but it cannot work alone. It needs production inventories, climate finance and credible delivery alongside it. India's Panchamrit goal of net zero by 2070 [4] and its early capacity milestone [3] give it that credibility. Together these can turn CBDR-RC into a fair, workable framework that advances SDG 13.