This document discusses carbon emission trading under the Kyoto Protocol and UNFCCC. It outlines mechanisms for clean development and joint implementation. It also discusses the cap and trade system of carbon markets and accounting for carbon credits from the business perspective, including demand and pricing models, risk management, and financial reporting standards. Key issues addressed include the lack of accounting standards for carbon emission reduction credits and questions around their nature, revenue recognition, and measurement principles.

2. INTRODUCTION
EVILS OF INDUSTRIALISATION :

3. THE UNFCCC & THE
KYOTO PROTOCOL
 Clean Development Mechanism (CDM
 Joint Implementation (JI)
 Carbon Emission Trading (CET)

4. CARBON EMISSION TRADING
(CET)
 The Cap & Trade
 The Carbon Market

5. THE NEED FOR CARBON
CREDIT ACCOUNTING
 Business Perspective
• Economic modeling of demand & supply
of carbon credits.
• Forward & spot pricing.
• Risk management.
• International financial reporting standards
(IFRS)

6. ISSUES OF CERs
ACCOUNTING
 Absence of Accounting
Standards
 What is the nature of the
CERs ?
 Revenue recognition
Measurement Principles

7. THANK YOU