The Science Based Targets initiative (SBTi) has confirmed that while carbon credit-based activities like forest protection and pollution reduction are beneficial, they should not form the core of a company’s climate strategy. Engaged in a debate since last April, SBTi’s draft standard states companies must focus on cutting their carbon footprints by altering business models and supply chains. This decision follows backlash against the previous suggestion that carbon credits play a significant role in climate transition plans. SBTi emphasizes alignment with the Paris Agreement’s goal to limit warming to 1.5°C without excessive reliance on offsets. The new standard includes specific guidance on transition plans, accounting, and interim targets, and allows companies to prioritize addressing emissions from their most polluting suppliers. Additionally, there’s flexibility for investment in carbon removals to offset hard-to-tackle emissions. This move aims to refocus corporate climate efforts on genuine emission reductions, though it sparks reactions and concerns from different sectors of the market.
