Production, consumption, and outsourcing are important in assessing the sustainability of a country. Current traditional consumption patterns and production systems based on commercial technologies are largely unsustainable. The industrial sector, to meet the needs and wants of humans, has contributed significantly to pollution and exploitation of the environment. A significant reduction in CO2 emission can be achieved by implementing sustainable practices. The developed countries such as the United States and the EU nations have recently experiences rapid drop in their CO2 emission associated with an increase in production and consumption. At the same timeframe, many Asian countries such as China, India and Vietnam have seen a rapid increase in the emission. How is developed countries’ CO2 emission decreasing while their production and consumption are increasing? This is because the developed countries are outsourcing their production facilities and the embedded CO2 emissions to other developing countries such as China, India, Vietnam, and Bangladesh that are experiencing a rapid rise in their CO2 emission. To understand this complex relationship, it is important to understand the basic principles of consumption, production, and outsourcing, the key objectives of this chapter.