The Science Based Targets initiative (SBTi) has announced an update to its Corporate Net-Zero Standard, expanding the use of environmental attribute certificates, such as emissions reduction credits, to address Scope 3 emissions. These indirect emissions, often representing over 90% of a company’s total emissions and arising from activities like supply chain operations and product use, present significant challenges in management and reduction. The 2021-established standard originally mandated 90-95% decarbonization by 2050 for direct emissions, but this revision acknowledges the complexities of wider corporate emissions footprints. By allowing a controlled use of these certificates, SBTi aims to provide companies with a scientifically supported, policy-compliant tool to achieve broader emissions reductions. This adjustment is expected to significantly influence the carbon credits market, encouraging more comprehensive and effective corporate climate actions, with detailed implementation rules set to be outlined by July 2024.
Learn more here.
