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This paper looks at the concept of embodied carbon in traded goods, asking how it might change the ways in which we account for GHG emissions at the international level, and the ways in which nations might address the challenge of climate change. The paper was prepared for the seminar on Trade and Climate Change, June 18-20, 2008, in Copenhagen, co-hosted by the Government of Denmark, the German Marshall Fund of the United States and IISD.