Source– This post is based on the article “Carbon Controversy: Corporate climate action watchdog’s new decision regarding use of offsetting causes backlash” published in “Down To Earth” on 12th April 2024.
Why in the News?
The recent decision by the Science Based Targets Initiative (SBTi) to allow carbon offsetting for Scope 3 emissions has sparked controversy and skepticism.
About Science Based Targets Initiative (SBTi)
1. About: The Science Based Targets Initiative (SBTi) is a global initiative that aims to encourage and support companies to set science-based targets (SBTs) to reduce greenhouse gas emissions and limit global warming to well below 2°C above pre-industrial levels.
2. It was established in 2015.
3. Partner organisations: CDP, United Nations Global Compact, We Mean Business Coalition, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).
4. Functions: The Science Based Targets initiative (SBTi):
a) Establishes and encourages exemplary practices in emissions reduction and net-zero goals consistent with climatological research.
b) Creates frameworks, resources, and guidelines to assist companies and financial institutions in establishing targets based on rigorous scientific evidence.
c) Evaluates and certifies the targets set by companies and financial institutions through its verification services to ensure they are scientifically grounded.
5. It distinguishes between near- and long-term goals and commitments:
a) Near-term targets show how organizations intend to reduce emissions over the next 5-10 years, crucial for significant progress by 2030 and a prerequisite for net zero targets.
b) Long-term targets indicate how organizations need to reduce their emissions to achieve net zero, according to the criteria of the SBTi Corporate Net-Zero Standard, by 2050 at the latest (2040 for the energy sector).
6. SBTi oversees the SBTi Net-Zero Standard which is the world’s only framework for corporate net-zero target setting in line with climate science.
About scope 1, 2 and 3 emissions
These scopes are defined by the Greenhouse Gas Protocol to prevent double counting and provide a comprehensive view of their greenhouse gas impacts.
a) Scope 1 Emissions: This includes direct emissions from owned or controlled sources.
b) Scope 2 Emissions: This includes indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the organization.
c) Scope 3 Emissions: This includes other indirect emissions not owned or controlled by the organization.
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