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 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.
