Commodity Trading Association Calls for Global Carbon Accounting Standards
The International Commodity Trading Association has called on international standard-setters to develop unified carbon accounting methodologies for commodity supply chains, warning that fragmented national approaches are creating compliance cost without environmental benefit.
FOR IMMEDIATE RELEASE — The International Commodity Trading Association (ICTA) today published a position paper calling on international standard-setting bodies to prioritise the development of unified, science-based carbon accounting methodologies specifically designed for commodity supply chains.
The paper, which has been endorsed by member companies collectively representing $2.8 trillion in annual commodity trade flows, argues that the current proliferation of competing national and sectoral carbon accounting frameworks is creating significant compliance burden for trading companies operating across multiple jurisdictions without delivering commensurate environmental benefit.
"We have member companies who are simultaneously reporting supply chain emissions under five different methodological frameworks to satisfy requirements in the UK, EU, US, Japan, and Singapore," said ICTA Director General Dr. Amara Diallo. "Each framework uses different system boundaries, different emission factors, and different verification requirements. The result is a massive compliance cost that generates inconsistent, incomparable data — exactly the opposite of what good environmental accounting should achieve."
The position paper specifically calls for: the International Sustainability Standards Board (ISSB) to develop commodity-specific application guidance for Scope 3 emissions reporting; the Greenhouse Gas Protocol to publish an updated supply chain accounting standard with specific commodity market provisions; and the WTO to develop a framework for recognising carbon accounting equivalence between national systems.
ICTA proposes a 24-month intensive standard-setting process, drawing on existing commodity-specific initiatives in shipping (Poseidon Principles), agriculture (SBTN), and metals (Initiative for Responsible Mining Assurance) to develop a consolidated commodity supply chain carbon accounting standard.
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