Accounting for Carbon Credits

At present, there are no specific International Financial Reporting Standards (IFRS) or US Generally Accepted Accounting Principles (US GAAP), or interpretations of those standards, that relate to carbon credit markets. This whitepaper addresses key accounting questions under existing guidance for both compliance carbon credits and voluntary carbon credits.

The paper addresses key accounting issues for entities that expect to use carbon credits to offset their own emissions, those that will trade these instruments in a secondary market and those that intend to do a combination of both. The paper addresses issues relevant to the application of both IFRS and US GAAP, although IFRS is the principal focus.

ISDA encourages the International Accounting Standards Board and the Financial Accounting Standards Board to work together where possible to develop consistent accounting standards for carbon credits under IFRS and US GAAP.

Documents (1) for Accounting for Carbon Credits

ISDA AGM Studio: Jacques Vigner, BNP Paribas

Jacques Vigner, ISDA board member and chief strategic oversight officer for global markets at BNP Paribas, speaks with Mark Gheerbrant, global head of risk and capital at ISDA, on the key obstacles to a consistent, risk-appropriate capital framework and how to...

ISDA AGM Studio: Future Leaders in Derivatives

Following publication of the latest whitepaper from the ISDA Future Leaders in Derivatives (IFLD) program, Collateral and Liquidity Efficiency in the Derivatives Market: Navigating Risk in a Fragile Ecosystem, Joel Clark talks to IFLD participants Koen Ottenheijm, senior treasury and...