The Science Based Targets initiative (SBTi)

Syllabus: GS3/Environment

Context:

The recent declaration by the Science Based Targets initiative (SBTi), permitting companies to utilize carbon offsets to fulfill their climate commitments, has generated significant criticism.

About:-

• SBTi is a collaborative effort between CDP, World Resources Institute (WRI), WWF, and the UN Global Compact.
• It drives ambitious climate action in the private sector by guiding companies in setting science-based emissions reduction targets aligned with limiting global warming to 1.5°C.
• Companies can submit their targets for validation by SBTi, ensuring they are credible and contribute meaningfully to climate goals.

Recent Controversy: Carbon Offsets

• SBTi recently announced that companies could potentially use carbon offsets to achieve their Scope 3 emissions reductions. Scope 3 refers to indirect emissions from a company’s value chain, such as those from suppliers and customers.
• This decision has been met with criticism from some environmental groups. Their concerns include:
  • Lack of effectiveness: Critics argue that many carbon offset projects may not deliver real, measurable, and additional emission reductions.
  • Double counting: There’s a risk of companies and project developers claiming the same emission reductions.
  • Focus on offsets, not reduction: Companies might prioritize offsets over actual emission reductions within their operations.

Arguments for SBTi’s Approach:

• Incentivize action: SBTi argues allowing offsets can incentivize companies to take on ambitious targets and participate in the program.
• Complement reduction efforts: Offsets can be used alongside deep internal emission reductions, especially for harder-to-abate Scope 3 emissions.
• Drive innovation: The increased demand for high-quality offsets could spur development of more rigorous and effective carbon offset projects.

Current Status:

• SBTi is still developing its rules and safeguards for using carbon offsets. They are planning to release a draft framework by July 2024.