SBTi Board in favor of using of carbon credits for scope 3

In January 2024, the SBTi prioritized revising its Corporate Net-Zero Standard, aiming to provide additional guidance on addressing scope 3 emissions. On April 9th, SBTi’s Board of Trustees stated that, with proper oversight, offsetting with environmental attribute certificates (carbon credits) could serve as an additional tool for mitigating climate change. The Board emphasized the need for SBTi to define guardrails and rules for the valid use of these certificates, aligning with mitigation hierarchy principles.

Despite internal concerns, the Board reiterated on April 19th that this proposal is part of the revision process of the Net-Zero Standard. Following stakeholder consultations, SBTi plans to issue a first draft of rules by July 2024.

RBI welcomes the Board’s proposal, as it’s crucial for companies to achieve their net-zero targets. It will bolster the VCM, subsequently aiding forest conservation efforts.

Statement from the SBTI Board of Trustees