The Italian Accounting Standard OIC 8 and the lack of an International Accounting Standard on Emission Trading

Objectives. The purpose of this paper is to outline some critical remarks concerning the Italian national accounting principle OIC 8 on financial carbon accounting and the lack of an international standard on the same issue. Methodology. Critical analysis of the literature on financial carbon accounting, the withdrawn IFRIC 3 and the OIC 8. Use of the deduction method. Findings. The study provides a first approach in the understanding of the Italian OIC 8 in the context of the European Union Emission Trading System (EU ETS) and the lack of a corresponding international accounting standard. Research limits. The limitation is the level of knowledge on the European Emission Trading System and on financial carbon accounting, and the complexity surrounding the withdrawal of IFRIC 3 as the first international accounting standard on financial carbon accounting. The second limitation is merely the theoretical dimension of scientific exploration. Therefore, the study represents an introduction to proper empirical research. Practical implications. The article presents information on the relationship between the European Emission Trading System, financial carbon accounting, OIC 8 and the withdrawn IFRIC 3. Originality of the study. Trying to fill the existing gap in literature, the article contributes to emphasizing the role of OIC 8, the European Emission Trading System, financial carbon accounting and the development of the latter two.