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Published research examines how AI is reshaping carbon-emission monitoring, environmental reporting, and climate-informed investment decisions.

By Opeyemi Samuel

Artificial intelligence could fundamentally change how the world measures carbon emissions and supports sustainable investment, according to a newly published international study co-authored by a Nigerian economist and doctoral researcher at the University of Nevada, Reno, United States, Adetomiwa Adesokan. The research demonstrates how AI-powered technologies are improving environmental monitoring while helping governments, regulators, businesses, and investors make more informed climate-related decisions.

The study, published in the International Journal of Environment and Climate Change, examines the growing application of artificial intelligence in carbon-emission monitoring and its implications for Environmental, Social and Governance (ESG) reporting, climate-risk assessment, and sustainable finance. Conducted as a systematic review of 55 studies published between 2021 and 2025, the research evaluates AI applications across sectors including energy, transportation, manufacturing, agriculture, and urban infrastructure.

The authors found that artificial intelligence technologies including machine learning, deep learning, satellite remote sensing, Internet of Things (IoT) systems, and advanced data analytics are significantly improving the accuracy of carbon-emission estimation, enabling near real-time environmental monitoring, identifying emission hotspots, and strengthening environmental reporting. These advances are providing governments and investors with more reliable information to support climate policy and sustainable investment decisions.

As countries strengthen efforts to reduce greenhouse gas emissions and accelerate the transition to low-carbon economies, demand has increased for technologies capable of delivering accurate, transparent, and timely environmental information. According to the researchers, artificial intelligence is increasingly bridging the gap between environmental monitoring and sustainable finance by improving the quality of data used in corporate sustainability reporting and climate-related investment analysis.

Speaking on the significance of the publication, Adesokan said technological innovation has an increasingly important role to play in addressing global environmental challenges.

“Artificial intelligence is becoming an important tool for improving environmental monitoring and strengthening evidence-based climate policy. When supported by reliable data, transparent governance, and responsible implementation, AI can help governments and investors make better decisions that advance sustainable development.”

The study also identifies several challenges that must be addressed before AI can achieve its full potential in environmental governance. Among these are inconsistent data quality, limited transparency of some AI models, difficulties associated with measuring indirect (Scope 3) emissions, and unequal access to advanced technologies across countries and organisations. The authors argue that addressing these challenges will be essential for building public confidence in AI-enabled climate solutions.

To improve the effectiveness of AI in climate governance, the researchers recommend strengthening environmental data standards, promoting explainable and transparent AI systems, expanding collaboration among governments, researchers, industry, and financial institutions, and developing policies that encourage responsible deployment of AI technologies in environmental monitoring and sustainable finance.

Adesokan’s research focuses on environmental economics, energy economics, climate policy, natural resource governance, sustainable development, and the application of emerging technologies to environmental decision-making. His work seeks to generate empirical evidence that supports practical policy solutions for addressing climate change while promoting long-term economic development.

The publication contributes to the growing international conversation on how artificial intelligence can support climate action, improve environmental accountability, and strengthen sustainable investment. As governments, financial institutions, and businesses increasingly incorporate digital technologies into environmental decision-making, studies such as this provide evidence that can inform future climate policy, corporate sustainability strategies, and responsible investment frameworks