The Science Based Targets Initiative has announced updates to its Corporate Net-Zero Standard that will allow for greater use of carbon credits for Scope 3 abatement.

The announcement is a boost to the voluntary carbon market although it has been criticised for allowing firms to offset emissions rath than cutting them. The SBTi says it will finalise guidelines over the summer although concerns are likely to remain about the quality of carbon credits used by firms for offsetting as well as the onus on firms to cut emissions.

The International Emissions Trading Association has issued a statement in reaction to the SBTi announcement.

“IETA welcomes yesterday’s announcement by SBTi’s Board of Trustees regarding the use of voluntary carbon credits to offset corporate scope 3 emissions. This move offers a practical route for corporates to engage in climate action, fostering demand for trustworthy credits and delivering more climate finance to developing countries. IETA believes the voluntary carbon market is evolving and adapting to changing dynamics, reflecting a positive evolution in response to the climate imperative to do more, faster”.

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