Climate ledgers

​A new approach is emerging in carbon tracking, accounting, and mitigating: It considers emissions liabilities to be tracked on the balance sheet and carbon credits and EACs as assets.

​It makes communicating about climate action a lot more straightforward:

​Liabilities keep growing unless you decarbonize. There is no way to greenwash this. Unfettered growth of these liabilities will start impacting the cost of capital.

​Assets are there to accelerate climate action and to keep your asset:liability ratio in check. It is independent of your decarbonization plans.

​Entities remain responsible for their assets' (carbon) value on their balance sheets. These can evolve over time (for example, forests burn down, methodologies need to be updated because science gets better, etc.).

During this fika, we will have an open conversation about this reframing.