What’s Next After Carbon Accounting? Emissions Liability Management


Publish Date:
April 25, 2023
Publication Title:
Working paper
Working Paper
  • Marc Roston, Alicia Seiger, & Thomas C. Heller, What’s Next After Carbon Accounting? Emissions Liability Management, Working paper, April 25, 2023 (available at SSRN.com: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4430164).
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We propose a method to internalize the externality of greenhouse gas emissions built on the foundation of greenhouse gas emissions accounting, whereby firms match long-duration emissions liabilities with duration-matched removal assets. This method drives a simple decision rule: only emit greenhouse gases if the value created exceeds the cost of reversing the emissions. This approach will drive capital allocation to enhance at-risk natural capital, expand investment in technology-based carbon dioxide removals and reductions, rationalize fraught carbon markets, and provide auditable and transparent net zero claims and guidance for transition pathways.