An overview of the principles that will govern the implementation of Green Accounting in India

The Earth is facing several environmental and economic challenges, including energy supply, climate change, natural resources scarcity, ecological degradation, etc. All these are interrelated with enormous economic consequences in future. The difference between what will be the cost of capital to generate a particular amount of output in the future and its present cost is termed as 'environmental capital'. The current paper examines development of green accounting as a profession in India and its potential application to the commercial sector. The concepts of green accounting are introduced with a brief overview of their importance. The paper explores how this nascent field has evolved to address challenges faced by businesses and the public sectors in response to the concerns about pollution, resource scarcity, economic development, etc. Green accounting has emerged as an important tool for sustainable development and environmental protection with wide implications for business practice and governance. By laying down the principles that will govern the implementation of Green Accounting in India, the paper contributes to original knowledge.