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Emissions Trading Schemes under IFRS - Towards a “true and fair view”


  • Haupt, Madlen
  • Ismer, Roland


This research paper seeks to contribute to the latest discussions on the financial reporting for emissions trading schemes. It starts out by giving an overview of the International Financial Reporting Standards (IFRS) accounting policies, which are currently applied by the majority of participants in the EU Emissions Trading Scheme. It then argues that in order to fulfil the aims of financial reporting under IFRS, namely to provide a true and fair view, accounting must depict CO2 as a cost of production. Therefore, a fair value approach, both with respect to the initial recognition of allocated allowances and the subsequent measurement of allowances, is generally advocated. The paper finishes by highlighting the insufficiencies of the current IFRS accounting rules, which should be addressed in the upcoming new IFRS on emission trading schemes.

Suggested Citation

  • Haupt, Madlen & Ismer, Roland, 2011. "Emissions Trading Schemes under IFRS - Towards a “true and fair view”," EconStor Research Reports 65872, ZBW - German National Library of Economics.
  • Handle: RePEc:zbw:esrepo:65872

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    References listed on IDEAS

    1. Regina Betz & Misato Sato, 2006. "Emissions trading: lessons learnt from the 1st phase of the EU ETS and prospects for the 2nd phase," Climate Policy, Taylor & Francis Journals, vol. 6(4), pages 351-359, July.
    2. Jos Sijm & Karsten Neuhoff & Yihsu Chen, 2006. "CO 2 cost pass-through and windfall profits in the power sector," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 49-72, January.
    3. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2009," World Bank Other Operational Studies 13403, The World Bank.
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    More about this item


    Carbon Pricing; Finance;

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law


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