Today is Monday, April 15, 2024.
After GRI adding carbon credits to their disclosure standards a few months ago and SEC excluding scope 3 from their new disclosure regulations - suspended meanwhile - last week was an UK-based entity that made a move related to carbon credits and scope 3: the Science Based Targets initiative (SBTI).
SBTi's press release starts like this: "While recognizing that there is an ongoing healthy debate on the subject matter, SBTi recognizes that, when properly supported by policies, standards and procedures based on scientific evidence, the use of environmental attribute certificates for abatement purposes on Scope 3 emissions could function as an additional tool to tackle climate change."
As carbon credits are the best-known form of environmental attribute certificates, this would mean a relaxation of the SBTi rules. Not long ago, in another effort, SBTi requested evidence about certain carbon credits.
The press release adds: "SBTi will not embark in validating carbon credits quality. Other entities are better positioned to deal with this activity. SBTi will enable all validating entities to have clear access and complete understanding of the demand side guardrails and rules established by SBTi for this purpose."
Indeed, as you are probably following, related to other UK-based entities such as ICVCM or VCMI.
The press release also informs that coming July, a discussion paper with a draft proposal from SBTi about potential changes to Scope 3 will be published.
According to some sources, part of SBTi staff was not much happy with that move, an extension "beyond the current limits", as per SBTi’s press release.
As you already know, not everybody is much in favour of having a market for carbon in the "form of credits" other than the existing forms we already have related to carbon: diamonds, oil, coal and gas. In that sense, trees, renewables and new low carbon emission techs would still remain at large, on their own.
It is like a "chess game" for the carbon credits. Key global players - and influencers - are clearly interacting and coordinating about it.
Click at the image below for the SBTi press release.
There are currently over 4 thousand companies with validated science-based climate targets by SBTi.
