GHG Emissions, Regulation - April 11, 2024
SBTi Approves Use of Environmental Certificates to Lower Scope 3 Emissions
SBTi (Science Based Targets initiative) announced they will extend the use of environmental attribute certificates for the purpose of abatement of Scope 3-related emissions beyond the current limits.
According to a statement, SBTi recognizes that when properly supported by policies, standards and procedures based on scientific evidence, the use of these certificates could function as an additional tool to tackle climate change.
This change will entail the definition by SBTi of specific guardrails and thresholds, as well as the rules to be applied for these certificates to be considered valid for Scope 3 emissions abatement purposes respecting the principles of mitigation hierarchy.
Considering the scope and the complexity of this topic, the SBTi will consult and strive to reach the necessary cooperation agreements with other relevant initiatives, as well as a broader set of stakeholders on the revision of the scope 3 framework, including the responsible use of environmental attribute certificates in target setting.
The statement notes that SBTi will not embark on validating the quality of carbon credits as 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.
SBTi considers this step toward accelerating the decarbonization of value chains with compensation logic while companies make their way to eliminate carbon emissions at the root through innovation and technology improvements.
As part of the standard revision process, and following consultations with all the relevant stakeholders, a first draft of basic rules, thresholds, and guardrails for the potential use of environmental attribute certificates for abatement purposes of Scope 3 emissions will be issued by SBTi by July 2024.
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