In this paper we explore how carbon markets have entered the world of financial accounting. The advent of the European Union Emissions Trading System (EU ETS) in 2005 provided the opportunity for global climate change concerns to be translated from policy into something that could, and should,...

This report investigates how large emitters in the European Union Emissions Trading System (EU ETS) are accounting for emission allowances. The research involved a detailed survey of the financial statements of the largest greenhouse gas (GHG) emitters in the EU ETS (26 companies). This was...