What is Carbon Accounting, and Why Now?

By Ankit SinghReviewed by Bethan DaviesDec 3 2025

Did you know the construction industry is behind nearly 39 % of the world’s CO₂ emissions from energy and industrial processes?¹

Image Credit: A HIP A HUB STOCK/Shutterstock.com

That’s nearly two-fifths of the problem, and a lot of it comes down to the materials we use, especially concrete.

Concrete is everywhere, in buildings, roads, bridges, and sidewalks. We rely on it constantly, but it also comes with a massive carbon footprint. As pressure grows to hit global climate targets, the concrete industry has to rethink how it produces, tracks, and reduces its emissions.

That’s where carbon accounting comes in.

Carbon accounting has become the backbone of how the construction sector is starting to measure emissions, cut carbon, and make smarter, more sustainable decisions.

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So What is Carbon Accounting - and Why Does it Matter Now?

Think of carbon accounting as the emissions version of financial accounting, but instead of tracking money, it tracks carbon.

In concrete, that means looking at every part of the process, whether it be where materials come from, how they’re made, how far they travel, or what happens on the construction site. All of that adds up to the material’s total carbon footprint.^1,2

This matters more than ever because emissions from concrete aren’t just a future problem; they’re happening right now, and at a massive scale. And with climate policies getting stricter, companies need clear, reliable data to show how they’re actively working to cut emissions and meet targets.^1,2

Carbon accounting gives them the framework to do that, and do it with confidence.?

How Carbon Accounting Works

Carbon accounting is not one single tool. It’s a system made up of different parts that work together. 

LCA: The Method Behind the Numbers

Life Cycle Assessment (LCA) is the core method for measuring the environmental impact of concrete across its entire life span. LCA frameworks set clear system boundaries like cradle-to-gate, cradle-to-site, or cradle-to-grave, depending on how far through the supply chain you want to track emissions. These boundaries help capture emissions from raw material extraction, processing, transport, production, use, and end-of-life.^2,3

What makes LCA such a valuable tool is its ability to bring together detailed data (energy use, cement content, admixtures, transportation distances), everything that contributes to a concrete mix’s embodied carbon.

Today, LCA methods are widely used and supported by standardized databases and emission factors, making it easier for manufacturers and project teams to stay consistent. These tools also play a key role in meeting international standards and supporting procurement decisions that prioritize low-carbon materials.³

EPDs: Turning Data into Decisions

Once you’ve got LCA data, you can create an Environmental Product Declaration (EPD), which is basically a standardized, third-party-verified label that shows the emissions tied to a specific concrete product.^4,5

EPDs are starting to show up in more regulations, bid requirements, and public procurement policies. Why? Because they help teams compare materials based on carbon impact, not just cost or performance.

And thanks to digital tools, creating EPDs is getting way easier. Software now automates a lot of the process, pulls live data from plants, and even helps smaller suppliers generate EPDs without needing a full team of analysts.^4,5

Going Real-Time: Data, Sensors, and Smart Systems

Recent progress in cyber-physical systems and predictive analytics also plays a significant role in modern carbon accounting.

Frameworks now feature automated data capture technologies embedded in construction machinery and production lines, continuously collecting high-fidelity emissions data. These systems integrate with predictive time-series modeling and machine learning algorithms for proactive adjustments in energy use, production scheduling, and material selection.¹

The closed-loop integration of monitoring, analytics, and financial decision-making bridges the traditional disconnect between project site operations and higher-level management or policy objectives. This data-driven approach establishes a dynamic, performance-based model for carbon management, which enables transparent verification and streamlined compliance with green finance mechanisms.?¹

Scaling Up: How the Industry is Starting to Align

The good news is that carbon accounting is finally starting to scale.

Groups like the Global Cement and Concrete Association (GCCA) are creating shared frameworks and rating systems so manufacturers and project teams can speak the same carbon language.^3,6,7

Governments are also stepping in with rules that require:

• EPDs on public projects
• Mandatory carbon reporting
• Emission caps on materials

Such policies drive industry-wide adoption of low-carbon technologies and create level playing fields for fair comparison among products and suppliers.^3,6,7

The Ongoing Challenge: Breaking Down Data Silos

Even with better tools, smarter software, and stronger regulations, carbon accounting in the concrete industry still faces a major challenge: the data is too often stuck in silos.

Here’s what that means in practice:

Many manufacturers and suppliers collect detailed emissions data (which is often a lot more than people realize), but they don’t always share it. Sometimes it’s treated as proprietary information. Sometimes it's not formatted for easy exchange. And sometimes, it’s just not connected to broader project workflows.

This creates a disconnect. Project teams may have ambitious carbon targets but lack access to the actual emissions data needed to meet them. Meanwhile, suppliers may be investing in cleaner processes but struggle to prove it because their data doesn’t make it into the systems used by designers, contractors, or regulators.

That fragmentation slows everything down, and worse, it makes it harder to compare materials or identify where the biggest emission reductions can happen.

Another part of the problem is the lack of standardized formats and platforms. If one supplier reports emissions in one way, and another uses a completely different system, their data can’t be easily compared or benchmarked. This creates inefficiencies and undercuts trust in the numbers.

But change is happening. New carbon accounting frameworks are pushing for open data standards and interoperable tools that work across the supply chain. The goal is to make emissions data as accessible and usable as any other project information.

There’s also a growing focus on digital integration: connecting LCA software, EPD platforms, BIM models, and procurement systems so that emissions data flows naturally as part of the design and construction process.

Fixing the data silo problem, however, requires a shift in mindset. Companies have to be willing to collaborate, share, and trust that transparent carbon data isn’t a competitive risk; it’s a collective necessity. Because if the industry can’t connect the dots between materials, projects, and emissions, then the full potential of carbon accounting stays out of reach.⁸

Financial Incentives and Market Mechanisms

Aside from climate commitments, carbon accounting is also becoming a core part of how money moves through the construction industry.

As governments, banks, and investors start tying financial incentives to emissions performance, accurate carbon data is moving away from being an option and is now classed a strategic asset. Companies that can prove they’re reducing their carbon footprint are better positioned to access funding, win contracts, and stand out in a competitive market.

One example is green finance. Financial products like green bonds and sustainability-linked loans offer lower interest rates or better terms for companies that meet verified emissions targets. But to qualify, those emissions reductions have to be tracked and audited, and that’s where carbon accounting comes in. Without it, there’s no credible way to prove performance.

Another key mechanism is the use of Environmental Attribute Certificates (EACs). These are essentially verified records of emissions savings, similar to renewable energy credits, that can be traded, bundled, or applied to corporate climate goals. For example, if a supplier produces concrete with 30 % lower embodied carbon than the standard, they may be able to sell that carbon “value” as a certificate to another company working to meet its sustainability targets.

On the buyer side, carbon accounting is increasingly being built into procurement policies. Governments and private developers are starting to prioritize low-carbon materials, not just on price and strength, but on proven emissions data. That means concrete suppliers who can back up their sustainability claims with reliable data through EPDs, LCA models, or real-time tracking are more likely to win bids.

There’s also a long-term business case: regulations are tightening, ESG (Environmental, Social, and Governance) requirements are rising, and shareholders are asking harder questions about sustainability. Companies that have already integrated carbon accounting into their operations are better prepared for what’s coming, both environmentally and financially.¹

Policy Implications and Stakeholder Collaboration

Now, for carbon accounting to drive the meaningful change we need, it must be embedded into the way the construction industry operates at every level. And this means that collaboration is key.

Governments, industry groups, and companies all play a role in defining how carbon is tracked, reported, and regulated. The policies being developed today are starting to shape how that data is collected, what standards are used, and how performance is verified.

Take public procurement, for example. Many cities, states, and national governments are now requiring EPDs or setting embodied carbon limits for publicly funded buildings and infrastructure. But to meet these requirements, there needs to be agreement on:

• Which carbon accounting methods are valid
• How emissions are reported (e.g., cradle-to-gate vs. cradle-to-grave)
• What tools or databases are used for emission factors
• How low-carbon performance is certified or audited

This level of coordination requires constant dialogue between stakeholders.

That’s why industry associations like the GCCA, national standard bodies, environmental NGOs, tech providers, and policymakers are increasingly working together to build aligned frameworks. These groups help ensure that the same rules and expectations apply across the board so that suppliers in different regions aren’t playing by different carbon rules.

Another critical layer is enforcement and trust. For policies to work, governments need access to reliable, verifiable data. To this end, carbon accounting frameworks use third-party verification, audit-ready data models, and standardized reporting. Without that, it’s too easy for low-quality or inconsistent data to slip through, weakening the impact of even the strongest climate policies.^3,9

There’s also a cultural shift happening where carbon data used to be something managed quietly in sustainability teams; it’s now becoming a shared responsibility across entire project teams, including procurement, finance, operations, and design. When everyone understands the importance of emissions data and speaks the same language, it leads to smarter decisions and stronger results.^3,9

Ultimately, carbon accounting only works when everyone is aligned. When standards are clear, data is trusted, and the goals are shared across the entire supply chain. 

Looking Ahead: Continuous Improvement and Innovation

As this article has demonstrated, carbon accounting is an evolving system shaped by rapid innovation, shifting policies, and new pressures from across the construction ecosystem.

Right now, the big trend is moving from static, retrospective reporting to real-time, dynamic management. That shift is being driven by new technologies and platforms that don’t just calculate emissions after a project ends, but help teams make low-carbon decisions as the project unfolds.

For example, we’re seeing more use of:

• Real-time analytics that pull data from sensors and connected devices on construction sites or in mixing plants.
• Predictive models that use past performance and scenario planning to recommend cleaner choices before concrete is poured.
• Automated LCA tools that simplify reporting and help suppliers generate verified data without needing an in-house sustainability team.

At the systems level, blockchain and other digital verification tools are starting to be explored to track emissions data through the supply chain, creating tamper-proof records of what materials were used, when, and how much carbon they carried.

There’s also momentum around improving the accuracy and consistency of emission factors, the baseline numbers that carbon accounting depends on. Right now, different databases and assumptions can lead to very different results for the same material. Industry groups and researchers are working to standardize these inputs, so emissions data becomes more consistent and comparable across regions and platforms.

At the same time, industry collaboration is ramping up. Companies that once treated sustainability as a competitive advantage are now joining consortia to build shared frameworks, open data standards, and better benchmarks. The thinking is simple: no single company can decarbonize concrete alone; but together, they can create the tools and rules everyone needs to make progress.

All of this points to a bigger shift in mindset. Carbon accounting is becoming a central part of performance management, design strategy, and financial planning in construction. As tools improve and standards tighten, it’s helping turn carbon reduction from a vague ambition into something measurable, trackable, and achievable on every project.^1,3

Carbon Transparency is a Team Effort

Whether you're in design, construction, manufacturing, or policy, understanding emissions data is part of building a more sustainable future. Follow the conversation, share your insights, and stay curious.

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References and Further Reading

1. Bai, F. et al. (2025). An integrated framework for reducing construction carbon emissions using real-time monitoring and econometrics. Scientific Reports, 15(1), 34188. DOI:10.1038/s41598-025-15479-7. https://www.nature.com/articles/s41598-025-15479-7
2. The Complete Guide to Concrete Carbon Footprint for Business Users. (2025). Ecochain. https://ecochain.com/blog/concrete-carbon-footprint/
3. Barbhuiya, S. et al. (2024). Decarbonising cement and concrete production: Strategies, challenges and pathways for sustainable development. Journal of Building Engineering, 86, 108861. DOI:10.1016/j.jobe.2024.108861. https://www.sciencedirect.com/science/article/pii/S2352710224004297
4. Anderson, J. et al. (2022). Using standards to maximise the benefit of digitisation of construction product Environmental Product Declaration (EPD) to reduce Building Life Cycle Impacts. E3S Web Conf. Volume 349. 10th International Conference on Life Cycle Management (LCM 2021). DOI:10.1051/e3sconf/202234910003. https://www.e3s-conferences.org/articles/e3sconf/abs/2022/16/e3sconf_lcm2022_10003/e3sconf_lcm2022_10003.html
5. U. R. Pannuti. (2023). LCA and EPD need digitalization. Life-Cycle of Structures and Infrastructure Systems. CRC Press. https://www.taylorfrancis.com/chapters/oa-edit/10.1201/9781003323020-503/lca-epd-need-digitalization-pannuti
6. McDonald, L. J. et al. (2024). Towards a unified carbon accounting landscape. Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences, 382(2282). DOI:10.1098/rsta.2023.0260. https://royalsocietypublishing.org/rsta/article/382/2282/20230260/112640/Towards-a-unified-carbon-accounting
7. GCCA Global Low Carbon Ratings for Cement and Concrete. GCCA. https://gccassociation.org/lcr/
8. Ramachandran, A. (2025). The business case for carbon transparency in construction. One Click LCA. https://oneclicklca.com/en/resources/articles/business-case-carbon-transparency-construction
9. Ouassou, E. H. et al. (2024). Carbon transparency in global supply chains: The mediating role of institutional and innovative capacity. Energy Strategy Reviews, 53, 101405. DOI:10.1016/j.esr.2024.101405. https://www.sciencedirect.com/science/article/pii/S2211467X24001123

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