SBTi's Stance on Carbon Credits: A Controversial Stand amidst Corporate Climate Debates

The Science-Based Targets initiative (SBTi) recently reaffirmed its position against the broad use of carbon credits for corporate emission offsets, citing insufficient scientific support. This stance has sparked controversy among stakeholders, including a revolt among staff and criticisms from offset proponents. SBTi aims to release updated policies by 2025.

The Science-Based Targets initiative (SBTi) reiterated its stance against the widespread use of carbon credits to offset corporate emissions, citing a lack of scientific support in a research paper released on Tuesday.

This position aligns with a preliminary draft reported by Reuters in May and suggests that SBTi will resist pressure from carbon offset advocates to include them broadly in climate target accounting. The board's prior intentions had already caused internal rebellion among staff.

Critics argue that carbon credits could disincentivize companies from reducing their emissions directly. SBTi's existing policy allows limited use of offsets only after companies exhaust direct emission reduction measures. Alternatives like environmental attribute certificates were discussed as potential aids for emission reduction efforts while retaining stringent offset rules.

SBTi's Chief Technical Officer emphasized the importance of direct emission cuts, and the organization is working on developing a more nuanced approach to indirect emissions, known as Scope 3. The group plans to release a draft Corporate Net-Zero Standard for public consultation by late 2024, with policy updates expected by the end of 2025.