10 January 2025

EU's IFRS adoption negatively impacted climate change mitigation pathways, academics find

The mandatory adoption of IFRS in the EU in 2005 has negatively impacted climate change mitigation pathways by altering corporate investment behavior, an group of academic has argued in a recent paper.

The paper written by Vera Palea and Alessandro Migliavacca of the University of Turin and Andrew G. Haldane (affiliation not specified) found that IFRS rules have added to carbon emissions by around 15-30% per year, relative to a GAAP benchmark.

Available hereĀ