The recent decision by the Science Based Targets Initiative (SBTi) to permit carbon offsetting for Scope 3 emissions has sparked controversy within the climate action community.
What is SBTi?
- SBTi is a standards-setting body for corporate climate targets, supported by various organizations including CDP, UN Global Compact, and WWF.
- It guides businesses in setting Science Based Targets (SBTs) for greenhouse gas emission reductions.
Scope 3 Emissions and Carbon Offsetting:
- Scope 3 emissions are indirect emissions from a company’s value chain, representing a significant portion of total emissions.
- SBTi’s recent decision allows the use of environmental attribute certificates (EACs), including carbon credits, for Scope 3 emissions abatement.
Concerns and Criticisms:
- Critics argue that allowing carbon offsetting for Scope 3 emissions could undermine accountability and focus on reducing direct emissions (Scope 1 and 2).
- The decision contradicts previous standards set by SBTi and raises questions about its scientific integrity.
Stakeholder Responses:
- The decision has triggered protests from within SBTi and skepticism from climate advocates.
- However, some voluntary carbon market initiatives, like VCMI and ICVCM, have welcomed the move, anticipating increased demand for offsets.
Potential Impacts:
- Analysis suggests that some companies may significantly reduce their emission reduction efforts if they rely on carbon offsetting.
- This decision could lead to misleading claims of corporate emissions reductions without actual reductions in emissions.
Multiple Choice Questions (MCQs) with Answers:
- What does SBTi stand for?
- a) Science Based Targets Initiative
- b) Sustainable Business Transformation Institute
- c) Sustainable Business Technologies Initiative
- d) Science Based Transition Index
- Answer: a) Science Based Targets Initiative
- What are Scope 3 emissions?
- a) Direct emissions from a company’s operations.
- b) Indirect emissions from purchased electricity.
- c) Indirect emissions from a company’s value chain.
- d) Emissions from transportation of raw materials.
- Answer: c) Indirect emissions from a company’s value chain.
- What recent decision has SBTi made regarding carbon offsetting?
- a) Permitting carbon offsetting for Scope 1 emissions.
- b) Prohibiting carbon offsetting for Scope 2 emissions.
- c) Permitting carbon offsetting for Scope 3 emissions.
- d) Prohibiting carbon offsetting altogether.
- Answer: c) Permitting carbon offsetting for Scope 3 emissions.
- What is the primary concern raised about the decision to allow carbon offsetting for Scope 3 emissions?
- a) It may increase corporate transparency.
- b) It could undermine accountability for emission reductions.
- c) It aligns with previous standards set by SBTi.
- d) It encourages direct emission reductions.
- Answer: b) It could undermine accountability for emission reductions.