Climate change poses a critical challenge to global sustainable development, and in response to the Paris Agreement, countries are working toward carbon neutrality through various emission reduction strategies. Socio-economic entities are exploring two main pathways: reducing emissions by optimizing operations and supply chains, and driving emission reductions through innovation in technology and business models. The concept of “Avoided Emissions” has emerged to scientifically measure the impact of these innovative approaches, which traditional greenhouse gas accounting methods often overlook. This article, written by Xinrui Pang, Assistant Researcher at the Climate Finance Research Center, IIGF, CUFE, reviews the concept of “Avoided Emissions,” its mechanisms, and methodologies, while addressing challenges in calculation and disclosure, and offering recommendations for improvement.