E-ledgers are a ledger-based carbon accounting approach that applies financial accounting principles, such as dual-entry, to emissions; tracking actual emissions upstream and downstream in value chains.
E-ledgers are intended to produce real-time, audit-ready emissions data at the product level, with less duplication and more accuracy than many current methods.
Most jurisdictions currently require businesses to measure and publicly report emissions using established standards such as:
GHG Protocol (Scopes 1, 2 and 3): the most widely-accepted corporate greenhouse gas accounting framework.
ISO standards and EU CSRD/ESRS: underpinning sustainability disclosures in regulated markets.
Regulators typically mandate these standards in law or compliance frameworks, whereas E-ledgers are not currently identified as a regulatory standard and remain an emerging tool.
Essentially, E-ledgers are not a recognised standard like the GHG Protocol or ISO 14064. They remain in development and require further consensus-building and regulatory adoption. E-ledgers do not currently exhibit the detailed rules, emissions factors, and technical standardisation necessary to replace established reporting systems.
However, because E-ledgers can potentially generate more granular, auditable emissions data, they could be used to improve existing reporting, particularly for Scope 3 and product lifecycle disclosures.
It is possible that ledger-style systems might eventually be part of regulatory frameworks or supply-chain transparency initiatives. Nevertheless, until such systems are accepted and mandated by regulators, E-ledgers will remain methodological innovation rather than a regulatory replacement.
Carbon reporting today requires disclosures under recognised frameworks. E-ledgers offer a new way of calculating and tracking emissions that might improve how reporting data is framed, but are not yet a regulatory standard, neither likely to eliminate the need for other forms of formal carbon reporting.
Our view is that E-ledgers are unlikely to replace mandatory carbon reporting anytime soon. They could, however, influence future reporting standards, or be used to generate higher-quality emissions data that supports existing reporting requirements.
Key timelines for E-ledgers and related carbon accounting
2025–2026 (Development phase)
An independent expert panel is working on guidelines and implementation steps for a global, double-entry carbon accounting system.
2025–2026 (Integration with CBAM)
E-ledgers are positioned to support the reporting requirements of the EU Carbon Border Adjustment Mechanism (CBAM), which requires disclosing product-level carbon intensity starting in 2026.
Late 2027 (Guidance finalization)
The Greenhouse Gas Protocol’s (GHGP) Scope 2 guidance, which is influencing the shift toward more rigorous accounting, is expected to be finalized around this time.
Upcoming milestones
Development efforts are focused on providing a preliminary draft with sector-specific standards for industries like cement, steel, oil & gas, and agriculture by COP31.
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