ESMA Public Statement on Accounting for Carbon allowances in financial statements

In light of the increasing prominence of the emission trading schemes across European economies, the CSSF would like to draw the attention of issuers to this ESMA Public Statement dated 8 October 2024. In this public statement ESMA:

• inventories the most common practices for accounting of carbon allowances;
• outlines the relevant IFRS standards used by issuers;
• provides disclosure recommendations striving to promote best practices for transparency in the field.