It is not an understatement that the increasing amounts of carbon dioxide and other greenhouse gases are heating up the earth’s climate and the inaction could be catastrophic. There is therefore an urgent need to control the levels of carbon dioxide to address the distressing effect of climate change not only to the environment but also to human health. Amidst this looming scenario, our economy is growing at a considerable pace. The challenge before us then is to accelerate economic growth without compromising the environment. This paper provides an introduction to carbon issues, overview the impact of carbon trading on accounting and reporting activities, carbon footprint accounting and its role in business sustainability and the role of accounting professionals in carbon accounting