Teaching Carbon Credit Valuation in Accounting Courses

Abstract

The rise of global climate policies, emissions trading schemes, and voluntary carbon markets has transformed carbon credits into measurable financial assets with accounting implications for corporations, governments, and sustainability-driven enterprises. Traditional accounting education focuses on tangible assets, financial instruments, and intangible assets but rarely incorporates carbon credits, which require specialized valuation models, regulatory awareness, measurement standards, audit mechanisms, and ethical considerations. This paper proposes a pedagogical framework for teaching carbon credit valuation in accounting programs using market-based pricing, marginal abatement cost models, fair-value approaches, and hybrid sustainability reporting techniques. The study emphasizes integrating IFRS, ISSB, and national carbon trading policies into coursework, supported by experiential simulations and cross-disciplinary learning.