This policy paper offers new insights into carbon financial accounting and extends our published
overarching COP26 Green Finance Report. The latter was developed in collaboration with the
British High Commission, the COP26 Universities Network, and the Singapore Green Finance
Centre, and presented analysis and insights into carbon credits financial accounting
policymaking in the Association of Southeast Asian Nations (ASEAN).
Delivered with the collaboration of the industry, this white paper is addressed to policymakers,
regulators, and the financial industry—primarily banks, asset managers, exchanges, and
marketplaces. Its aim is to help readers understand the global carbon markets financial
accounting regulatory framework and related policymaking challenges, and to suggest concrete
policy recommendations.
The report focuses on certified carbon offset credits (i.e., carbon offsets) as transferable and
tradable financial instruments based on IFRS definitions. It also addresses the lack of
transparency and faithful financial accounting representation, concluding with the need to
establish a specific standard and revisit the definition of financial instruments for carbon offsets.
Drawing on industry insights from leading institutions, senior officials, and policymakers
regarding the common understanding of carbon offsets across Europe, China, and Singapore,
the paper develops recommendations based on these insights. This topic is highly sensitive, and
we respect the anonymity and discretion claimed by industry contributors.