Glossary:Carbon accounting

Carbon accounting (or greenhouse gas accounting) is a framework of methods to measure and track how much greenhouse gas (GHG) an organization emits. It can also be used to track projects or actions to reduce emissions in sectors such as forestry or renewable energy. Corporations, cities and other groups use these techniques to help limit climate change. Organizations will often set an emissions baseline, create targets for reducing emissions, and track progress towards them. The accounting methods enable them to do this in a more consistent and transparent manner.

These techniques can also help understand the impacts of specific products and services by quantifying their GHG emissions throughout their lifecycle. This can promote more environmentally-friendly purchasing decisions. GHG accounting methods can help investors better understand the climate risks of companies they invest in. Corporate and community net-zero goals are also aided by accurate accounting methods. There is some evidence that programs that require GHG accounting have the effect of lowering emissions.[1]