“Carbon Accountants must be accountable to underpin trust in net-zero” as independent professional register prepares to launch

With hundreds of thousands of organisations globally expected to face mandatory carbon reporting in the coming years – the lack of professional vetting of carbon accountants has prompted the creation of an independent register to prevent greenwashing and underpin trust in the net-zero transition.

With plans to launch a Carbon Accounting and Auditors Register (CAAR) globally before the end of 2025, the Institute of Environmental Management and Assessment (IEMA) and the Carbon Accounting Alliance (CAA) have published a competency framework setting out the vital skills knowledge and qualifications needed to ensure carbon accounting is the highest standard and fit for purpose.

While the UK Government has led the way globally in mandatory reporting of carbon emissions, it is currently tussling with plans to set out new rules for carbon reporting. Many other businesses already voluntarily report on their carbon emissions, whether due to supply chain tendering processes or a desire to get to grips with the process before it becomes mandatory.

“As the demand for robust, auditable, and science-aligned carbon data intensifies – driven by net zero commitments, ESG reporting frameworks, and regulation – there is a growing need for clarity and confidence in the professionals carrying out carbon accounting and assurance work,” said IEMA Senior Climate Policy Lead Chloë Fiddy.

“Currently there are thousands of people across the UK and globally delivering some form of carbon accounting. Many are competent professionals with the necessary experience and expertise to deliver best-practice, but the reality is we simply do not know the true number and level of competence of people working in this field.

“Setting standards of competence for carbon accountants and auditors is a critical step in building trust in organisational emissions reporting and disclosures – which are vital to ensuring the legitimacy of our carbon cutting efforts and ultimately to achieving net-zero.

“Carbon accountants must be accountable.”

To meet this need, IEMA supported by CAA, is establishing the Carbon Accounting and Auditors Register (CAAR) – a trusted and quality-assured listing of professionals with the competence to deliver or verify greenhouse gas (GHG) data and carbon footprints to the highest standard.

The first step in the process has been creating a competency framework against which professionals can be held accountable – including all the key skills and experience needed to carry out various levels of carbon accounting – in consultation with expert IEMA members and key stakeholders in carbon accounting, from independent professionals to consultancies carrying out this work at scale.

These include 15 competencies at the Associate Carbon Accountant level, a further 15 at Practitioner level and another 17 at the level of Principle Carbon Accountant.

Now that they have been published, professionals delivering carbon accounting are being encouraged to ensure they have the necessary competencies in time for the launch of the Register later this year.

It is hoped that the competency framework will be helpful in the development of training offered to Carbon Accounting professionals around the world, either by providing a clear list of skills and experience to cover in training courses, or creating new opportunities for professionals to upskill in specific areas to cover any gaps in their skill sets.

Chloë Fiddy said: “Carbon Accounting is a fast-moving discipline, and best practice is constantly changing in line with regulatory guidance, developing methodologies and the introduction of new schemes such as the Carbon Border Adjustment Mechanism (CBAM), which is expected to be enforced in the UK in 2027, or any future scheme where emissions lead to taxation.

“It’s crucial to have a set of standards to which we can hold accountable Carbon Accounting professionals – not just so there’s an accessible benchmarking exercise, but also to protect the integrity of professionals carrying out this sensitive work.”

Carbon Accounting professionals may be surprised to see ‘understanding of basic financial concepts’ listed as a key competency for Associate Level practitioners.

Chloë explains: “carbon accountancy isn’t really accountancy in and of itself – at the basic level it’s more like taking an inventory. Where it becomes more complicated is where taxation comes into play.

“For example, CBAM will bring in an element of taxation, and companies will want to avoid paying too much or too little tax. Buying carbon credits, or carbon offsetting, are also processes for which a basic knowledge of financial accounting will be beneficial.”