2025 trends: Carbon accounting takes centre stage.

2025 can prove monumental in the fight against climate change. According to scientists, global emissions should have peaked before 2025 and begin a decline if the world was to achieve its net zero goal by 2050. An integral component of this equation is, you guessed it, carbon accounting. 

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Accuracy is the name of the game when it comes to calculating emissions, setting targets, and actually achieving them. Carbon accounting, done accurately, can help organisations, governments, and the general public take steps to bring down their emissions. Without those numbers, we can’t take concrete steps. It’s no longer just about compliance; it’s about making meaningful changes. And the good news? The tools and technologies at our disposal are evolving rapidly. 

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At comundo, we’re passionate about advancing the carbon accounting landscape. In this article, we dive into five projections for the industry in 2025, building on last year’s insights and uncovering emerging trends. Let’s go!

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1. The carbon accounting market is set to boom

If 2024 laid the foundation, 2025 is when the carbon accounting market will truly take off. Already valued at a little over USD 16 billion in 2023, the market is poised to grow at a CAGR of 22.9% until 2032, reaching a value of USD 102 billion. 

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What’s driving the growth? Regulations like the European Union’s (EU) Corporate Sustainability Reporting Directive (CSRD) are a major force – affecting over 49,000 companies in the EU. Most of these companies will be looking for solutions for environmental, social, and governance (ESG) reporting. Businesses across industries are rushing to invest in robust carbon accounting solutions that can meet these stringent demands. 

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What we said in 2024: We anticipated this growth and the increasing regulatory focus. While some companies were slow to adapt last year, 2025 will leave no room for hesitation. 

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New in 2025: Expect more startups and tech giants entering the fray, bringing innovative solutions to address persistent challenges like Scope 3 emissions tracking and data aggregation. 

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2. AI takes the lead in carbon accounting

Artificial Intelligence (AI) is making waves across industries, and carbon accounting is no exception. In 2025, AI is no longer a “nice-to-have” feature – it’s the backbone of leading solutions. The best carbon accounting solutions in 2025 will incorporate AI technology to improve their product features and solve the complexities of ESG data collection. 

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AI’s potential goes far beyond automating data collection. Advanced algorithms can analyse unstructured supplier data, refine emissions calculations, and even predict the outcomes of decarbonisation strategies. Imagine testing the impact of switching to renewable energy before implementing it – AI makes this possible. 

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What we said in 2024: We predicted AI’s emergence in carbon accounting, but adoption was slower than anticipated due to a lack of standardisation. 

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New in 2025: AI tools are now more accessible and user-friendly. Leading platforms incorporate machine learning to identify patterns, make predictions, and even suggest tailored decarbonisation strategies for industries as diverse as manufacturing, logistics, and real estate.

3. Emission factors get the spotlight

Emission factors, critical for calculating the environmental impact of activities and products, are finally getting the attention they deserve. Accurate carbon accounting hinges on using the correct and most up-to-date emission factors. Yet, these vary by industry, geography, and resource, leading to inconsistencies in reporting. In 2025, solution providers are doubling down on standardising and automating the use of emission factors. 

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At comundo, we’ve worked hard to ensure the highest accuracy of energy emissions data by automating the collection and use of emission factors. There’s no guesswork. Our platform gets the emission factors from public databases and utility providers (specific to the energy source and time). 

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What we said in 2024: We flagged emission factors as a weak link in carbon accounting.

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New in 2025: The industry is taking steps to close the gap. Expect more collaboration between solution providers, regulators, and data sources to improve accuracy and reliability across the board.

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4. SMEs join the carbon accounting club

For the better part of the last decade, carbon accounting has been an endeavour of large companies (think listed corporations with tens of thousands of employees and large operations). That’s because only such businesses were required or showed interest in calculating and reporting on their carbon footprint. But in 2025, the narrative is shifting!

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Small and medium enterprises (SMEs) are now joining the carbon accounting club and investing in reporting their data and setting targets for themselves in line with the Paris Agreement. This is driven by a combination of public awareness, investor scrutiny, and regulatory requirements. In the EU, the CSRD also includes listed SMEs that meet certain thresholds, impacting over 700 public SMEs. 

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What we said in 2024: We saw the inklings of SME involvement but underestimated the pace of change. 

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New in 2025: SMEs are leveraging simplified, affordable solutions tailored to their needs. As carbon accounting becomes mainstream, these businesses prove that sustainability isn’t just for the big dogs. 

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5. CFOs take charge of sustainability

In 2025, sustainability isn’t just a department – it’s a boardroom priority. And at the helm of this shift are Chief Financial Officers (CFOs). CFOs are uniquely positioned to oversee ESG reporting, compliance, and decarbonisation strategies. They’re the ones balancing regulatory demands with long-term financial planning, making them the natural leaders of an organisation’s sustainability efforts. 

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What we said in 2024: We anticipated sustainability teams would grow in importance, but the newer development of CFOs taking the reins is a happy surprise.

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New in 2025: Expect to see CFOs working closely with Chief Sustainability Officers (CSOs) or even taking on dual roles. Big names like Unilever and Microsoft are leading the way, with dedicated sustainability leadership driving real impact. 

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Where carbon accounting goes from here

As we move closer to the end of the decade, the need for accurate and reliable carbon accounting will only increase. Many organisations, cities, and countries have big goals for 2030 and 2050 (by which we must become net zero). Reaching those goals wouldn’t be possible without knowing where we currently stand in terms of our carbon footprint. 

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Fortunately, thanks to technology, there have been huge improvements in how we collect, sort, and report emissions data, making carbon accounting much more streamlined than a decade ago. With the help of automated solutions, AI-based learning, and increased push from regulations, businesses today can get an accurate idea of the impact of their operations on the environment and people. And that’s where the real work can begin. 

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At comundo, we’re proud to be a part of the innovations that make carbon accounting accessible and reliable. Our platform has helped real estate and other businesses collect and analyse their energy data and make their buildings more eco-friendly. It all starts with data - ACCURATE DATA!

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