Carbon emissions significantly contribute to climate change, and carbon credits have emerged as a key tool for mitigating environmental damage and helping organizations manage their carbon footprint. Despite their growing importance across sectors, fully leveraging carbon credits remains challenging. This study explores engineering practices and fintech solutions to enhance carbon emission management. We first review the negative impacts of carbon emission non-disclosure, revealing its adverse effects on financial stability and market value. Organizations are encouraged to actively manage emissions and disclose relevant data to mitigate risks. Next, we analyze factors influencing carbon prices and review advanced prediction algorithms that optimize carbon credit purchasing strategies, reducing costs and improving efficiency. Additionally, we examine corporate carbon emission prediction models, which offer accurate performance assessments and aid in planning future carbon credit needs. By integrating carbon price and emission predictions, we propose research directions, including corporate carbon management cost forecasting. This study provides a foundation for future quantitative research on the financial and market impacts of carbon management practices and is the first systematic review focusing on computing solutions and engineering practices for carbon credits.
Carbon markets put a price on emissions, yet that price remains hard to forecast. Work in this area clusters on the EU and Chinese schemes, compresses regulatory text into a sentiment score, and reports accuracy without calibration or explanation stability. We distil ten recurring gaps into an impact-feasibility matrix and propose EPA-CarbonNet, a six-layer architecture that fuses market series with policy text by cross-attention and calibrated intervals alongside policy-attributed explanations. We then build and test it on eleven years of daily S and P carbon index data. The findings are largely negative, and reported as measured: a random walk beats the model on five-day RMSE (0.0365 against 0.0475), SHAP rankings agree at rho = 0.54 across resampled backgrounds, and policy attention never coincides with documented regulatory events. Directional accuracy, at 58.6 percent, leads every baseline. Code, data documentation and all result artifacts are available at https://github.com/Kimalice/Toward-Explainable-and-Policy-Aware-AI-for-Carbon-Credit-Price-Prediction
Summaiya Unnisa Begum, Mohammed Nadeem Ullah, Mohammed Abdul Ghani Khan
E-commerce recommender systems strongly influence which products users consider and purchase, yet sustainability signals such as Product Carbon Footprint (PCF) are almost never available at catalog scale. We study carbon-aware product recommendation in the realistic setting where PCF labels are missing for most items and must be inferred. We first estimate product-level carbon footprints via a retrieval-augmented PCF estimation pipeline that transfers supervision from the Carbon Catalogue, a small set of life-cycle-assessed products, to a large unlabeled e-commerce catalog using semantic similarity search, few-shot LLM prompting, and a nearest-neighbour fallback. We then apply a carbon-aware post-hoc re-ranking strategy on top of relevance scores produced by three established recommendation models: BPR, NeuMF, and LightGCN. The method trades off predicted user-item engagement against estimated carbon footprint through a single tunable parameter, lambda. In this offline study, engagement is operationalized through Amazon review interactions, which serve as implicit feedback and as a proxy for user interest or purchase behavior. We evaluate the framework on the Amazon Reviews dataset across three product categories: Home and Kitchen, Sports and Outdoors, and Electronics. By sweeping lambda, we construct Pareto frontiers that characterize the achievable engagement and carbon trade-off for each model and category. Substantial carbon reductions are achievable at minimal engagement cost across all models and categories. However, the available carbon headroom varies by model and category, underscoring the importance of model choice and domain context.
The carbon footprint of any deployed Large Language Model (LLM) accumulates during inference, where repeated use of the model substantially exceeds the one-time cost of fine-tuning. Yet most efficiency interventions target either pre-training scale or post-hoc compression. We ask whether folding a calibrated, differentiable energy surrogate into the fine-tuning objective can produce inference behavior that gains task accuracy at zero or near-zero carbon cost, a break-even configuration. We propose a joint loss mechanism with a per-model carbon-emission parameter, a linear surrogate over parameter norm, FLOP proxy, and a memory proxy, fit from on-hardware energy profiling. We fine-tune three architecturally distinct families: Gemma-2 2B, Llama-3.1 8B, and Qwen-2.5 14B, and evaluate inference F1 and CO2 emissions on three MMLU subjects: abstract algebra, philosophy, and formal logic. We discover from several outcomes that the carbon term behaves as either harmful interference or beneficial regularization depending on the task structure. We position calibrated carbon-aware fine-tuning as a lightweight, drop-in regularizer with a non-empty but model and task-dependent break-even region. This is an ongoing work, and we will release our codebase soon.