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Climate target group in turmoil over carbon offsetting plan

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:

🗞️ Driving the news: The Science Based Targets initiative (SBTi) is facing internal turmoil and calls for its CEO's resignation after deciding to allow companies to use carbon credits to offset Scope 3 emissions, which include all indirect emissions in a company's value chain

🔭 The context: The SBTi's decision marks a significant policy shift, as it had previously rejected the use of carbon offsets
• The move has sparked controversy among staff and technical advisory group members, who argue it lacks a scientific basis and could undermine efforts to reduce emissions directly

🌍 Why it matters for the planet: This policy change is pivotal in the discourse around corporate responsibility and environmental sustainability
• By enabling the use of offsets for Scope 3 emissions, it raises concerns about potentially diluting the imperative for companies to make direct reductions in their carbon footprint, even as it aims to channel more funds into climate-friendly projects

⏭️ What's next: The SBTi plans to consult with stakeholders and other initiatives to navigate the complexities of the issue
• The decision aligns with broader moves in the voluntary carbon markets to encourage the use of high-quality carbon credits, amid varying perspectives on the role of offsets in climate action

💬 One quote: "The voice of business on this issue is clear," said María Mendiluce, chief executive of the We Mean Business Coalition and a board trustee of SBTi. "Companies value SBTi and are committed to delivering on their emissions reductions targets, but need greater clarity and flexibility in how to navigate Scope 3 emissions"

📈 One stat: The market for carbon credits was worth around $2 billion in 2021 and is projected to exceed $50 billion by 2030, according to Boston Consulting Group

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