Climate efficiency rankings: Why small nations are beating global giants

Summary

A new chart, with data sourced from The World Bank, depicts how much economic activity countries generate per tonne of greenhouse gas (GHG) emissions, highlighting which nations are most efficient in their environmental impact. Rwanda and Uganda lead as the most climate-efficient, while small island nations like Trinidad and Tobago rank among the least.

Major economies like the U.S., Japan, and China underperform, producing low economic output per tonne of emissions. However, the metric is just one part of a complex picture, reflecting the need for clean energy access in developing countries and the responsibility of wealthier nations to do better.

Key points

A recent chart, compiled by Carbon Growth Partners, offers an intriguing snapshot of how much economic activity is generated per tonne of greenhouse gas (GHG) emissions, providing a glimpse into which countries are making the most—and least—of their environmental impact. In simple terms, the higher the economic output per tonne of emissions, the better.

  • Here are some key takeaways:
    The most climate-efficient nations are led by Rwanda and Uganda, which significantly outshine many others in terms of resource use.
  • On the flip side, small island nations like Trinidad and Tobago and Palau rank among the least efficient.
  • Major economies such as Japan, the U.S., and Australia are underperforming when it comes to creating economic value relative to their emissions.
  • Large, carbon-intensive nations like China, Russia, and Saudi Arabia also fare poorly, especially considering their size and global influence.

However, some important caveats are worth noting:

The data compares dollar output per tonne of emissions, but this can obscure broader realities. For instance, Rwanda, while efficient, is a least-developed country with just $2,365 per capita GDP, faces severe energy insecurity, and contributes only 0.015% of global emissions. Its low position in emissions output is not necessarily a positive sign.

  • Likewise, being on either end of the efficiency spectrum doesn’t automatically label countries as “good” or “bad” actors—often, their circumstances dictate their performance.
  • For example, Palau, a remote island nation, is almost entirely dependent on imported fossil fuels for energy. Meanwhile, Uganda benefits from cleaner energy sources, with biomass as a major energy contributor and hydropower making up 84% of its grid-connected electricity.

What does all this tell us? While this metric offers a useful perspective, it’s just one lens on a complex issue. Still, a few insights stand out:

  • It underscores the urgent need for clean, reliable energy in developing nations, as limiting access to energy is not a viable way to combat climate change.
  • India is significantly outpacing China in resource efficiency, with a performance that’s over 50% better.
  • The data highlights the inequity between petrostates and other nations, as citizens in oil-rich countries benefit from heavy climate subsidies at the expense of others.
  • Wealthier countries like the U.S., Australia, Japan, and others (including those not shown, such as Canada) have the resources to improve their clean energy transition—and the moral obligation to do so.

Source: Data from The World Bank, sourced from Our World in Data. Chart compiled by Carbon Growth Partners.