New Rules Proposed for High-Quality Emissions-Reduction Plans

The Science-Based Targets initiative proposed new rules to enhance company climate goals without loosening its stance on carbon credits. The proposal allows limited use of offsets and encourages broader climate contributions while addressing Scope 3 emissions. The initiative continues seeing growth in science-based target setting.

The Science-Based Targets initiative (SBTi) has proposed new rules aimed at improving the quality of company emissions-reduction plans, while maintaining its strict stance on the use of carbon credits. This move comes a year after the organization was embroiled in controversy over its policies.

The proposed guidelines continue to allow companies to offset residual emissions—those unavoidably left after companies have taken extensive actions to minimize them. However, SBTi stops short of endorsing widespread use of carbon credits, instead urging companies to invest in credits that are not directly tied to their supply chains, thus promoting broader climate efforts.

Critics argue that carbon credit impacts are often difficult to measure accurately, questioning their overall effectiveness. Nonetheless, the SBTi has seen robust growth in organizations setting science-based targets. The new rules also seek to enhance participation from smaller businesses and emerging markets, amid increased political and legal challenges to climate-friendly initiatives, especially in the United States.

(With inputs from agencies.)