Authors

1. Dr. Sonal Jain
2. Ms. Khushboo Solanki

Affiliation

• Professor and HOD Deepshikha College of Technical Education Jaipur
• Assistant Professor Deepshikha College of Technical Education Jaipu

Abstract

For several decades, the economic, environmental and health effects from Green House Gases (GHGs) have been closely studied and debated. Currently, nations are pursuing alternative strategies in their quest to cut down the level of GHG emissions and meet national targets.
As a result of increasing awareness about Global warming, the concept of carbon credits, an outcome of the Kyoto protocol, came into existence. “Kyoto Protocol” has served the idea of saving the planet earth from the global meltdown. Since the concept of emission trading is comparatively new, the financial and accounting aspects of this phenomenon are yet to be discussed and decided upon. It is believed by experts of the field that carbon is also treated as on input and thus becomes a cost of business, like other inputs do. Accounting treatment of donated CER credits and internally generated carbon credits relate to carbon offsets. Their accounting treatment is under debate as it provide for a vast difference in its impact. This article introduces the fundamental accounting issues concerning emissions of GHGs and thus, is an effort to throw some light on the financial issues of carbon credit trading.

Keywords

Green House Gases , Certified Emission Reductions (CERs)

References

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