LONDON – The use of carbon offsets to support carbon emissions clams has been found to be largely “ineffective” according to findings released by the Science Based Targets initiative (SBT). The standards body this week shared the details from its analysis of third-party studies which, it says, shows “various types of carbon credits are ineffective in delivering their intended mitigation outcomes.”
Further, SBTi has now warned that the corporate reliance on carbon credits might hinder decarbonisation efforts and diminish the allocation of climate finance.
The SBTi published four technical outputs as an early step in the process for the revision of the SBTi Corporate Net-Zero Standard.
This included a discussion paper setting out the SBTi’s initial thinking on potential changes being explored around scope 3 target setting, including underlying principles and concepts.
It also included the release of all submissions received as part of an open call for evidence which ran September to November 2023 on the effectiveness of Environmental Attribute Certificates.
Earlier this year, the SBTi issued a statement n which it suggested that it planned to allow member companies to use carbon offsets in lieu of scope 3 emissions abatement.
This prompted a major backlash, including among SBTi staff members. One prominent staff member has left the SBTi and the CEO has stepped down since that time.
In May, Swedish fashion retailer H&M wrote to the SBTi expressing concern over the standard body’s plans to allow use of carbon offsets to mitigate scope 3 emissions.
H&M told the SBTi’s board of trustees, “companies must address their own value chains directly rather than relying on offsetting emissions elsewhere.” It also said allowing offsets within scope 3 could undermine investments and innovation aimed at reducing actual value chain emissions.
However, many fashion companies have little – if any – hope of achieving net zero targets without the use of carbon offsets.
