Organizations: School of Electrical and Computer Engineering The University of Sydney CamperdownNSW 2006 Australia. · Adelaide Business School The University of Adelaide AdelaideSA 5005 Australia. · The University of Sydney Business School The University of Sydney CamperdownNSW 2006 Australia. · School of Computer Science and Engineering University of New South Wales Sydney KensingtonNSW 2033 Australia.
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
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.
Artificial Intelligence (AI) and Machine Learning (ML) have become powerful tools for supporting and automating complex human tasks. Despite their benefits, growing attention has been directed toward their environmental implications, primarily due to their high energy demands and associated carbon emissions. This concern is particularly relevant in light of the increasing deployment of large-scale models, especially Deep Learning (DL) architectures, which provide advanced predictive capabilities but require substantial computational resources. This paper presents a systematic review of research on Green AI, Green DL, and optimization techniques aimed at reducing the environmental impact of AI models. In addition, we examine and compare several carbon measurement tools for estimating emissions generated by AI algorithms. To complement the review, we conducted an empirical evaluation using a CPU-based experimental setup, in which six DL models were implemented for a multi-label classification task. The objective was to quantify and compare their overall carbon emissions and to determine which stages of the DL lifecycle contribute most significantly to the total footprint. The results show that the training phase is the primary source of emissions. Moreover, the findings reveal that increased architectural complexity does not systematically translate into proportional accuracy gains, highlighting the importance of carefully balancing predictive performance and environmental cost. These results reinforce the need to integrate sustainability considerations into model selection and AI system design.