The Science Based Targets initiative (SBTi) is consulting on guidance it intends to provide on use of carbon offsets and credits as part of firms’ CO2 emissions reduction efforts. SBTI, which validates the Paris-alignment of corporates’ emissions reduction pathways, is consulting on its proposed advice on ‘Beyond Value Chain Mitigation’ until July 30. Under SBTI’s Corporate Newt Zero Standard, firms are encouraged to invest in BVCM – which covers activities including high-quality, jurisdictional REDD+ credits and investing in direct air capture – in addition to their near- and long-term emission reduction targets. SBTi said its final BVCM guidance will help to inform companies’ decision-making when looking to invest in climate finance and mitigation “and enable them to holistically play their part in the global transformation to net zero”. Noting that existing policies put the world on a climate change trajectory in excess of 1.5°C, SBTi said companies should go “above and beyond” their science-based targets by also investing to mitigate climate change beyond their value chains “and contribute to societal net zero”. It said the guidance would clarify the definition of BVCM, articulate the need for corporate investment, and provide recommendations on deploying finance and resources across mitigation activities, as well as on transparency and reporting. “There is a critical need for companies to invest in nascent greenhouse gas removal technologies so that the technology is available to neutralise residual emissions at the long-term science-based target date,” wrote SBTi Head of Standards Emma Watson in a recent blog.
We've launched a six-week public consultation on beyond value chain mitigation (#BVCM) which will inform upcoming guidance on this topic.
— Science Based Targets initiative (@sciencetargets) June 20, 2023