Environmental Credits Descriptive Research
Project Type:
Research
Status:
Active
Milestone:
Initiation
In July 2026, the UKEB approved its research strategy for the remainder of the 2026/27 financial year. The strategy was developed following consultation on the Regulatory Strategy 2026/27. Stakeholder feedback demonstrated strong support for a focused research programme in areas where the UKEB could make a meaningful contribution to international standard-setting and thought leadership.
Environmental credits emerged as one of the priority research themes. Respondents highlighted the growing economic significance of environmental credit markets in supporting net-zero and wider environmental policy objectives, together with the increasing prevalence of such instruments across both voluntary and regulatory schemes. Stakeholders also noted significant diversity in current accounting practices and called for greater clarity and consistency in financial reporting.
Background
In approving the research strategy, the Board recognised that environmental credits raise important accounting questions that extend beyond asset recognition and measurement. The topic intersects with wider issues relating to liabilities, revenue recognition, disclosure, and the connectivity between financial reporting and sustainability-related reporting. The Board also noted that the research builds on the UKEB's previous work on climate-related matters and aligns with areas identified by the IASB as potential future research priorities.
The approved strategy envisaged an initial research phase focused on understanding the prevalence and nature of environmental credit schemes, which:
- assesses current accounting treatments and disclosures,
- identifies areas of diversity in practice, and
- explores potential principles-based approaches to accounting.
The Board agreed that this research should provide an evidence base to support future UKEB positions and enable effective engagement with any future IASB standard-setting activity in this area.
Outreach
The UKEB outreach plan includes discussions with stakeholders.
UKEB Meetings
UKEB Meetings
- 17 September 2026: Project Initiation Plan
Timeline
-
1
Initiation
Hide all milestone documentation
The UKEB published its Project Initiation Plan on 4 November 2026.
Project Initiation Plan - Environmental Credits Descriptive Research