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illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: The Science Based Targets initiative (SBTi) has proposed allowing companies to use carbon removals to meet their net-zero targets
• Under the new guidelines, removals would only be permitted for residual emissions that cannot be reduced through direct actions
• The move could reshape corporate climate strategies and impact the voluntary carbon market.
🔭 The context: SBTi, formed in 2015, is a key body validating corporate climate targets, with around 10,000 companies involved
• The role of carbon removals has been contentious, with critics arguing it could let companies continue emitting while offsetting emissions with credits
• The proposals follow internal turmoil at SBTi, including a staff revolt and leadership changes over its carbon offset policies
🌍 Why it matters for the planet: If adopted, the new guidelines could legitimise carbon removals as part of net-zero strategies, influencing corporate emissions reductions
• Critics warn it may weaken incentives for direct decarbonisation, while supporters argue it acknowledges the necessity of removals for hard-to-abate sectors
• The policy shift could also accelerate investment in carbon removal technologies
⏭️ What's next: The proposals will undergo consultations with businesses and experts before SBTi’s technical committee reviews them later this year
• A final standard is expected by the end of 2025 and will take effect in 2026
• The changes could revitalise the voluntary carbon market, currently dominated by a few buyers like Microsoft, which accounts for 70% of purchases
💬 One quote: “The draft standard addresses complex, emerging issues and lays the foundation to enable more companies to move further and faster towards net-zero.” – Francesco Starace, Chair of SBTi
📈 One stat: Microsoft alone accounts for 70% of voluntary carbon removal purchases, according to CDR.fyi
See here detailed sustainability performance of companies like Microsoft
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