Voluntary Carbon Credits: Global use, accounting & disclosure considerations
Financial accounting and disclosure of voluntary carbon credits have different considerations both nationally and globally. Here’s how to stay up to date on requirements.
The second report in our Voluntary Carbon Markets (VCMs) series dives deeper into VCMs, examining their use in Canada and globally, as well as the related financial accounting and other disclosure implications of using carbon credits toward GHG emission reduction targets. This report will help guide buyers, project developers and investors in the VCM ecosystem to bolster transparency of GHG emissions reduction claims achieved through carbon credits.
Key takeaways:
- which corporates are purchasing voluntary carbon credits
- types of carbon credits and project locations
- financial accounting considerations for purchasers of carbon credits
- sustainability-related disclosure requirements on the use of carbon credits
This article is a collaboration between Chartered Professional Accountants of Canada (CPA Canada), the International Federation of Accountants (IFAC) and the Institute for Sustainable Finance (ISF).