SBTi Revises Proposal Amid Controversy Over Carbon Offsetting

The Science Based Targets initiative (SBTi) published two key papers that may shape the future of its net-zero standards. The Scope 3 Discussion Paper suggests a framework to guide companies in focusing on critical emissions within their industries, rejecting the use of carbon credits from activities outside their value chains. The second, the Carbon Credit Synthesis Report, highlights the ineffectiveness of carbon credits in meeting corporate climate targets.

These releases follow an April 2024 statement by the SBTi Board that proposed including carbon credits in calculations for achieving climate targets, which sparked significant backlash and raised concerns about undue influence by “backers” of the carbon credit industry. The SBTi's revised proposals aim to address existing challenges in corporate target setting by emphasizing sector-specific transitions and more meaningful action, rather than relying on carbon offsets.

On the horizon: Ongoing revisions to SBTi standards, the GHG Protocol and a new ISO net-zero standard are expected to enhance corporate climate accountability.