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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) faces internal backlash over its new policy allowing companies to use carbon credits for offsetting Scope 3 emissions, which has led to calls for the CEO's resignation and a reversal of the policy
🔭 The context: SBTi, a global nonprofit, guides companies in setting climate targets
• Its decision to permit offsets for Scope 3 emissions—those coming from a company's value chain—has been criticized by staff and stakeholders for lacking a scientific basis and potentially harming its reputation
🌍 Why it matters for the planet: The controversy highlights the tension between advancing climate-friendly projects through carbon credits and ensuring companies take direct action to reduce emissions
• The move could shift the dynamics of corporate climate strategies and carbon markets
⏭️ What's next: SBTi plans to consult and reach agreements with other initiatives and a broader stakeholder group to address the complexity of Scope 3 emissions
• The policy aligns with broader trends in carbon markets, aiming to enhance the quality and use of carbon credits
💬 One quote: "This change empowers companies to bring more innovation and investment into cutting emissions from their value chains," (María Mendiluce, CEO of the We Mean Business Coalition and a board trustee of SBTi)
📈 One stat: The carbon credit market, valued at around $2 billion in 2021, could surpass $50 billion by 2030, according to Boston Consulting Group
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