SBTi Holds Firm on Carbon Credit Policy Amid Scientific Scrutiny

The Science-Based Targets initiative (SBTi) maintains its stance against broadly using carbon credits for offsetting corporate emissions due to insufficient scientific support. Despite pressure from advocates, SBTi focuses on direct emissions reduction. The group plans to refine its policies, with a draft Corporate Net-Zero Standard expected by Q4 2024.

The Science-Based Targets initiative (SBTi) announced Tuesday that current scientific evidence does not support lifting restrictions on companies using carbon credits to offset their emissions.

The findings, consistent with a preliminary report from May, suggest SBTi will continue resisting pressure to broadly use carbon offsets when accounting for climate targets. This follows an April revolt among SBTi staff regarding the board's premature announcement on potential policy changes.

SBTi CEO Luiz Amaral recently resigned for personal reasons, and the group reaffirmed that any new policies would be evidence-based. Carbon credits from wind farms and reforestation are debated for potentially resulting in less corporate emissions reduction and questionable offsets quality. SBTi's current policy allows limited carbon offsetting only after maximum pollution reduction efforts, considering environmental attribute certificates as an alternative measure.

The nascent market for voluntary carbon offsets, valued at about $2 billion and used by major corporations like Microsoft and Amazon, faces scrutiny over offset quality. SBTi's research aims to develop a more sophisticated approach to Scope 3 emissions, emphasizing direct reduction.

Thomas Day of the NewClimate Institute praised the report for adhering to science and refining SBTi's standards. Further discussions and consultations are slated for late 2024, with updated policies expected by the end of 2025.