Carbon Emissions Reporting – Regulations and Innovation

Countries, industries, and businesses are increasingly required to submit inventories of their greenhouse gas (GHG) emissions, including carbon. Reporting requirements vary by country, sector, and organisation.

However, in high-emitting industries such as oil and gas, steel, cement, energy, and transport, mandatory carbon reporting is becoming more common as governments tighten emissions regulations, investors assess environmental performance, and businesses are held accountable for their carbon footprints.

Organisations use carbon reporting standards to measure, quantify, and disclose their GHG emissions. Regular reporting allows regulators and monitoring bodies to track whether organisations are meeting their legal obligations.

Examples of mandatory reporting frameworks include:

• European Sustainability Reporting Standards (ESRS) – Required under the Corporate Sustainability Reporting Directive (CSRD) for large companies operating within the EU.
• Task Force on Climate-related Financial Disclosures (TCFD) – Required or integrated into regulations across several financial markets, including the UK, EU, Japan, Canada, New Zealand, and Singapore.
• Greenhouse Gas (GHG) Protocol – Widely used as the basis for many regulatory carbon reporting systems globally, including the EU CSRD and proposed US SEC climate disclosure rules.

There are also voluntary standards that organisations use to demonstrate best practice and improve transparency, although they are not legally mandated. Examples include:

• CDP (Carbon Disclosure Project) – Used voluntarily by thousands of businesses for investor transparency and environmental disclosure.
• ISO 14064 – An international standard for carbon accounting and verification, commonly used for internal carbon management and third-party assurance.
• Verified Carbon Standard (VCS) – Used by organisations developing or purchasing carbon credits, particularly in voluntary carbon markets.

National greenhouse gas reporting requirements

At the international level, the United Nations Framework Convention on Climate Change (UNFCCC) requires countries to submit a national inventory report (NIR) detailing anthropogenic greenhouse gas emissions by source and removals by sink.

The IPCC Task Force on National Greenhouse Gas Inventories (TFI) develops the internationally agreed methodologies for calculating national GHG emissions and removals for parties to the UNFCCC and the Paris Agreement.

However, reporting requirements differ between developed and developing countries. Developed countries, known as Annex I Parties, must submit detailed annual National Inventory Reports. Developing countries, or non-Annex I Parties, report less frequently through National Communications and Biennial Update Reports, which have less stringent requirements. The most recent submissions from developed countries were made in 2025.

Independent bodies monitoring global emissions

While the UNFCCC reviews countries’ self-reported emissions inventories, independent organisations also monitor and verify climate commitments.

One example is the Climate Action Tracker (CAT), which evaluates countries’ climate policies, emissions trends, and Nationally Determined Contributions (NDCs). CAT covers the world’s largest emitters and a representative sample of smaller countries, accounting for approximately 85% of global emissions and around 70% of the global population. It also assesses whether countries are contributing their “fair share” towards limiting global warming in line with the Paris Agreement.

Another major initiative is Climate TRACE (Tracking Real-Time Atmospheric Carbon Emissions), which uses artificial intelligence, satellite imagery, and sensors to independently monitor GHG emissions in near real time.

How AI and satellites are transforming emissions monitoring

Launched in 2021, Climate TRACE tracks emissions from around 744 million individual assets worldwide, including power plants, ships, landfill sites, rice paddies, and cattle feedlots. The initiative combines machine learning, infrared satellite imagery, and advanced computer modelling to improve the speed and accuracy of emissions tracking.

The platform was recognised by Time Magazine as one of the “100 Best Inventions” for its innovative use of technology in climate monitoring.

According to Time Magazine: “The first-of-its-kind environmental analytics tool … uses a combination of machine learning, infrared satellite imagery and advanced computer modelling to track polluters worldwide in real time.”The information collected by Climate TRACE is made publicly available through an online portal, helping organisations, researchers, governments, and the public verify climate pledges and emissions reductions. Its near-real-time monitoring capabilities also help close data gaps in traditional reporting systems and improve transparency in global climate governance.