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illuminem summarizes for you the essential news of the day. Read the full piece on edie or enjoy below:
🗞️ Driving the news: Carbon credit project developers are urging the Science Based Targets initiative (SBTi) to allow companies to offset more than 10% of Scope 3 emissions
• The SBTi’s current Net-Zero Standard requires companies to reduce absolute emissions by 90% across their value chains, which many find challenging for indirect emissions
• Developers argue that expanding offsetting could unlock critical climate finance for vulnerable regions
🔭 The context: Scope 3 emissions, which include indirect emissions from supply chains, are often the largest and hardest to reduce for companies
• The SBTi is revising its Standard, amid debates about the credibility and effectiveness of carbon offsets
• Concerns linger over issues such as additionality, permanence, and leakage in the carbon credit market, with studies suggesting only 12-33% of offsets achieve their stated climate benefits
🌍 Why it matters for the planet: Increasing reliance on offsets could finance projects that deliver both emissions reductions and co-benefits, such as clean cookstoves and forest conservation
• However, over-reliance risks undermining efforts to achieve real emissions reductions and could dilute net-zero goals
• Striking a balance between offsets and genuine decarbonization is crucial to global climate progress
⏭️ What's next: The SBTi will issue a revised Standard in 2025 after further research and consultation. Until then, debates will continue over the role of offsets in corporate net-zero strategies
• Ongoing reforms in carbon markets aim to enhance credibility and effectiveness to address persistent challenges
💬 One quote: “Projects such as clean cookstoves and forest conservation depend heavily on carbon finance to succeed,” - Dr. Sven Kolmetz, Director of the Project Developer Forum
📈 One stat: Studies suggest that only 12-33% of carbon credits deliver their stated climate benefits.
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