Financial Accounting For Carbon Finance: A New Standard For A New Paradigm (Policy Paper)

In this report, we propose a simple, clear, and robust accounting regulatory framework with just a few measures that will help achieve the required transparency in global carbon markets. In terms of governance and leadership to tackle this project, we believe that the International Accounting Standard Board (IASB) is the most appropriate regulatory body, as it is both more qualified to work on this initiative and more influential than other organisations. The rationale is that the IASB, as the accounting standard-setting board of the IFRS Foundation, should retake the “Emissions Trading Schemes Project” and provide clear and consistent guidance on its carbon markets accounting rules.