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illuminem summarises for you the essential news of the day. Read the full piece on Trellis or enjoy below:
🗞️ Driving the news: A new analysis urges the Science-Based Targets initiative (SBTi) to strengthen its draft Corporate Net-Zero Standard by including Scope 3 in interim carbon removal targets and requiring action on ongoing emissions
• The current draft limits near-term carbon removal targets to Scope 1 emissions and leaves mitigation of ongoing emissions optional and vaguely defined
• Experts argue that these gaps undermine the standard's potential to scale climate finance and carbon removal
🔭 The context: While the draft recognises the role of carbon credits and interim targets, it excludes Scope 3 emissions from near-term planning due to perceived complexity
• However, Scope 3 emissions account for the majority of emissions from SBTi-participating companies, particularly in high-margin sectors like finance and tech
• Critics say the current design will not generate sufficient demand to reach gigaton-scale removals by mid-century
🌍 Why it matters for the planet: Failing to include Scope 3 in removal targets risks leaving most corporate emissions unaddressed, hindering global progress toward 1.5°C alignment
• Strengthening these elements could unlock substantial private finance to fund large-scale carbon removal projects
• Clearer requirements would also reduce the cumulative climate impact of ongoing emissions over time
⏭️ What's next: The public consultation period for the SBTi draft runs until 1 June 2025
• Advocates are pushing for a simplified method to estimate residual Scope 3 emissions and integrate them into interim targets
• A more robust standard could mobilise greater corporate investment in climate solutions
💬 One quote: "Including Scope 3 and requiring action on ongoing emissions would transform SBTi’s net zero standard into a mechanism that could unleash private finance for climate action." – Margaret Morales, Climate Policy Analyst
📈 One stat: Interim removal targets for Scope 1 emissions could create demand for up to 2 million carbon removal credits by 2030 — far below the gigaton-scale needed globally
See here detailed sustainability performance of companies like Microsoft, Alphabet, and JPMorgan Chase
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