Reliable and consistent carbon accounting is the foundation of any serious climate policy, net-zero commitment, or climate finance decision. Right now, different businesses and governments follow a mix of rules and methods, which leads to confusion, makes it easier for some to exaggerate their climate progress, and slows down the flow of money toward real climate solutions. The G20, which includes the world’s biggest economies and the largest share of emissions, has the power to push for one clear, strong, and common global system for carbon accounting.

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What “global carbon accounting standards” must cover

A global standard for carbon accounting needs to provide four key things:
(1) clear and consistent definitions for Scope 1, Scope 2, and Scope 3 emissions,
(2) simple and reliable methods for measuring and reporting emissions,
(3) clear rules on how to count carbon removals and avoided emissions, and
(4) independent checks along with strong systems to manage and share data.

Right now, there are already some important guidelines in place, such as the Greenhouse Gas Protocol, ISO standards, IPCC guidance, and the ISSB disclosure rules. These cover many areas, but they are not always applied in the same way and sometimes even create confusion. The best way forward is to bring these different systems together and make them work in harmony.

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Why the G20 should lead

The G20 represents most of the world’s economy and is also responsible for a large part of global emissions. The policies made by its members strongly influence markets and international institutions. If the G20 agrees on a common approach to carbon accounting, it would bring several benefits. First, it would lower compliance costs for multinational companies, since they would not need to follow many different rules in different countries. Second, it would make climate disclosures more reliable and useful for investors. Third, it would support better alignment between public finance, central banks’ risk analysis, and carbon markets. The International Sustainability Standards Board (ISSB) has already gained wide support as a global baseline for disclosures. The G20 now has the chance to build on that support and turn it into clear, practical accounting rules.

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Recommended G20 agenda – seven actionable items

Adopt a single baseline for disclosure and accounting

There should be one common starting point for climate-related disclosure and greenhouse gas (GHG) accounting. The best way to do this is to use the ISSB’s S1 and S2 standards as the baseline for disclosure, while linking them with practical accounting methods such as the GHG Protocol and ISO standards. This creates clarity: the ISSB rules explain what companies need to disclose, and the GHG Protocol/ISO provide the guidance on how to measure and calculate emissions. This combined approach will help both companies and regulators follow a consistent framework.

Mandate alignment between GHG Protocol and ISO

Work is already underway to bring the GHG Protocol and ISO standards closer together. The G20 should make this alignment a priority so that definitions, terms, and rules are consistent. For example, standards need to be harmonized on issues like how electricity use is counted, how biogenic emissions are treated, and how removals are handled. Using one common language across standards avoids confusion, reduces double counting, and limits debates about which method is correct.

Require transparent Scope 3 reporting with materiality thresholds

Scope 3 emissions those that occur across a company’s supply chain and product use — usually make up the largest share of total emissions, but they are also the hardest to measure. The G20 should make it mandatory for companies to report their material Scope 3 emissions. To make this practical, reporting can follow phased timelines and use standardized templates. Companies should also explain if they leave out any categories. This ensures ambition is balanced with feasibility and prevents companies from simply opting out of disclosing key emissions.

Set clear rules for removals and carbon credits

The G20 should define strong rules for what counts as a valid carbon removal. This means removals must meet standards for permanence, additionality, proper monitoring, and independent verification. In addition, a global system is needed to track removals and carbon credits to avoid double counting between countries’ national inventories and companies’ claims. Building a transparent international registry and linking public and private accounting systems will strengthen trust and integrity in the use of removals and credits.

Invest in data infrastructure and capacity building

Accurate climate accounting requires strong data systems, but many countries and small businesses do not have access to reliable measurement tools, satellite monitoring, or activity data. The G20 should use climate finance channels to support open data platforms, remote sensing technologies, and training programs. This will help lower-income countries and smaller firms build the capacity they need, and it will prevent a divide where only some countries can comply with global standards.

Promote independent assurance and regulatory coherence

Climate accounting is only reliable if the information is verified. The G20 should encourage a phased move toward mandatory third-party assurance for large companies, so that emissions data are independently checked. At the same time, financial regulators should ensure climate accounting requirements are integrated into market disclosure rules. This will give investors consistent, audited, and trustworthy climate information.

Create a G20 task force to oversee implementation

To make sure all of these measures are put into action, the G20 should establish a dedicated task force. This group should bring together finance, environment, trade, and statistics ministries. Its role would be to coordinate technical work on standards, removals, data systems, and capacity building. It should also set timelines, track progress, and publish regular reports. This will turn political commitments into measurable outcomes and ensure accountability.

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Guardrails to avoid perverse outcomes

Protecting scientific integrity is very important. The standards we follow must always be based on the best available science from the IPCC, including clear limits on emissions and the real outcomes for global warming. These rules should not be changed or weakened just to suit political convenience.

The rules must also remain open and easy for everyone to access. If they become expensive or locked behind paywalls, only a few groups will be able to follow them properly. To ensure fairness, the basic rules should either be free to access or at least supported in a way that keeps them affordable.

It is also important to avoid creating a single, rigid system that tries to fit every country or region. Different regions have their own unique situations, so they should be allowed to use approaches that suit them best. However, whatever approach is taken, there must be clear and transparent ways to connect these regional methods back to the global baseline, so everything stays consistent worldwide.

What success looks like

Within the next 12–24 months: The G20 will officially support a plan to bring the ISSB, GHG Protocol, and ISO standards into alignment and will set up a dedicated task force to drive this work.

Within the next 2–4 years: Major countries will start using these aligned standards in their financial regulations and corporate reporting requirements. A global public registry will also be launched to track carbon removal efforts in a transparent way.

Within the next 5 years: Companies and governments will have comparable and verifiable carbon accounts. This will give investors and policy makers the reliable information they need to measure real progress toward Paris Agreement climate goals.

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Conclusion

Global carbon accounting standards are not just something technical or optional they are essential. They help the world clearly track emissions, guide government policies, and move money into the right climate solutions so that progress toward net-zero can actually be measured and achieved. The G20 has a unique chance to make a big difference by agreeing on one common approach that works across countries, using existing frameworks like ISSB, the GHG Protocol, and ISO standards.

At the same time, the G20 can support better data systems and build the skills needed to use them properly. Just as important, it must make sure that carbon removals and carbon credits are handled with honesty and integrity, so they really represent real reductions. If this agenda is done well, it will cut down greenwashing, reduce costs for businesses that need to comply, and make it easier for investors to put money into genuine decarbonisation efforts. This would be a powerful and practical contribution from the world’s biggest economies to the global fight against climate change.