The Science Based Targets Initiative (SBTi) ruled that companies are allowed to use carbon credits to meet their climate goals. Specifically, they are allowed to partially offset carbon emissions from customers and suppliers (known as scope 3). SBTi recognises that certain types of emissions cannot be reduced to zero. For CO₂ reductions in their own production process (scope 1) and purchased energy (scope 2), offsetting is still not allowed.
What is carbon offsetting?
For example: you are an European company who is emitting CO₂ in Europe. That same CO₂ is taken out of the air elsewhere, for example Africa. The final balance – on paper – is neutral.
Offsetting does not have to be done by your company itself. A whole trade has developed in carbon offsetting. Other organisations sell carbon credits and use the revenue to finance third-party companies that carry out reforestation on the site. A company that purchases such credits can offset them in its climate goals. While on paper this is just simple math, but in reality it is much more complicated. SBTi was always a strong opponent of those carbon offsets, because of the believe that offsetting is not the correct way to achieve your climate goals.
Only Scope 3
While SBTi still acknowledges that there is a healthy debate on this issue, SBTi recognises that, if properly supported by policies, standards and procedures based on scientific evidence, the use of environmental certificates for reduction purposes on Scope 3 emissions can function as an additional tool to address climate change.
Therefore, SBTi has decided to expand its use for the reduction of Scope 3-related emissions beyond current limits.
More details on the exact conditions under which carbon offsetting will be possible will follow in July of this year.
Offsetting is a heavily debated topic. Transparency is key when mitigating / offsetting your carbon emissions. Have a look at our sister company Go Forest, for example. Go Forest is the most transparant company when it comes to reporting on the amount of planted trees, absorbed CO₂ , locations, etc.. Keep an eye on their website, because interesting updates will follow.