Emissions embodied in trade
Embodied emissions are emissions generated during production and transport of a good. National emissions inventories typically assign embodied emissions to the producing country: for example, if China produces a widget that it exports to the US, the emissions generated in the manufacture of the widget would be assigned to China. However, many have argued for assigning at least some of the emissions embodied in the widget to the consuming country. The calculator's standard setting follows standard practice and assign all emissions to the producing country. If however you select Include emissions embodied in trade, all the emissions embodied in traded goods are assigned to the consuming country.