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Carbon Offsets, Energy Credits to Get Clearer Accounting

May 25, 2022, 9:57 PM

Companies that use renewable energy credits, carbon offsets, or cap-and-trade programs to reduce their pollution or increase their use of clean energy could get clearer accounting rules on how to report these credits in their financial statements.

The Financial Accounting Standards Board on Wednesday unanimously agreed to tackle how to recognize and measure these increasingly popular tools. FASB also will consider presentation and disclosure requirements.

The rise of mandatory programs for companies to reduce their greenhouse gases as well as voluntary exercises to go green or get to net-zero emissions boosts the need for clear rules, FASB members said.

“To ...