Carbon Accounting: Framework for a Comprehensive New Product- and Entity-Level, Ledger-Based Carbon Accounting System (June 2025) is the first in a series of analysis by the EFI Foundation. The project aims to adapt well-established and widely accepted principles of financial accounting to product-based carbon accounting and product-specific carbon intensity measures. Product-based carbon accounting is a policy-agnostic and technology-neutral tool that can serve the interests of businesses and policymakers.
The global economy currently lacks a standardized system of accounting for product level carbon emissions. Product carbon intensity measures provide a new tool to mobilize private sector investment in lower carbon commodities and products while meeting the growing demand for energy. Globally aligned product-based carbon accounting metrics that are accurate and verifiable also support scaling up high integrity carbon markets (voluntary and compliance).
This initial framework white paper introduces the basic architecture of a comprehensive carbon accounting system, including:
- Core governing principles.
- Major framework elements, including the beginnings of a rulebook.
- Design of a carbon ledger.
- Opportunities for product carbon intensity standards.
Further EFI Foundation publications will follow in summer and fall 2025, including in-depth system design and comparative analysis, industry case studies, and implementation pathways. The release of this initial framework white paper may help inform policymakers in fashioning an action agenda for COP30.
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