Mau-Ting Nee’s Post

*THE GAME HAS CHANGED* The Science Based Targets initiative has just released a statement saying they will allow voluntary carbon credits for scope 3 abatement. They say "SBTi will not embark in validating carbon credits quality. Other entities are better positioned to deal with this activity."...amen - BeZero Carbon. Why does this matter? SBTi is arguably the most important driver of demand in the voluntary carbon market, with huge influence in corporate decarbonisation. Their previous reluctance to allow the use of carbon credits (before 2050) was holding back financing for many climate projects. This is a huge step change and I expect to see a tide of investment coming into the market as a result of this. No detail on types of credits/ amounts can be used etc. But, big congratulations to the trustees and exciting times for the market. https://lnkd.in/eeY9FfJ5

The offsetting mechanism is guised as a source of climate finance to support emerging societies and communities to develop sustainably. This is at best misleading. Communities across the globe need substantive support to implement climate action on the ground and enable sustainable development. Foremost, they need our economies and supply chains to fundamentally transform to avoid the most disastrous impacts of climate change. This is not achieved by delaying real corporate action through financial transfers into comparatively easy, “low-hanging” emission reductions in the Global South.

Following SBTi conflicting announcements has left many wondering about the reliability of our 'northern star', since SBTi is functioning as the most comprehensive guidance for corporate science-based decarbonisation. However, it is no secret that in spite of the ambition, many companies still struggle to implement actions leading towards decarbonising at the speed needed up to 2030, 2032, 2034, 2040 or 2050. There are not enough economic incentives to address current challenges and mitigate all emissions by 30-50-90% depending on ambition level. Carbon removals are important part of the equation. But can we rely on them? The EU Council and Parliament have agreed to establishing an EU carbon removals certification framework last March, which didn't catch as much attention in spite this is a much-needed framework. Check it out here: https://lnkd.in/dmAb84W9 We need to remember the gap between ambition and action. Currently, this gap is the biggest challenge. We need to keep cooperating to turn solutions economically feasible by increasing economies of scale. More news here: https://lnkd.in/dAx7sExZ #SBTi #decarbonisation #partnerships

Interesting developments at the SBTi this week - see our thoughts at CEN-ESG below. Want to know more? Then contact me or my colleague Jasper Crone to get our latest views on this and all things sustainability and ESG related. #sustainability #netzero #transitionplans #sbti #sciencebasedtargets #carbon #decarbonisation #strategy #ESG

🚨 The Science Based Targets initiative (SBTi) will hand out "get out of jail free" cards... In a recent statement, the Science Based Targets initiative Board of Trustees made waves by extending the use of environmental attribute certificates (EACs) for Scope 3 emissions. For context, when a company purchases an EAC, it invests in a project or initiative that reduces emissions, such as renewable energy generation or reforestation efforts. So, businesses can buy these certificates to "balance" their carbon footprint, indirectly. This decision has ignited intense debate within the sustainability community. According to the SBTi, this move aims to accelerate the decarbonization of value chains while companies pursue long-term emissions reduction strategies. However, critics argue that it could provide a "get out of jail free" card for businesses, allowing them to offset emissions without implementing genuine sustainability measures. The announcement faced swift criticism from environmental advocates and organizations like the NewClimate Institute and Carbon Market Watch. Concerns range from potential greenwashing to SBTi's standards' credibility. Simon McKeating of the Scotland Food & Drink Partnership Net Zero Commitment emphasized the importance of genuine emissions reduction efforts, stating, "We cannot simply buy our way out of climate change." 💰 🙅♂️ What do you think? Are EACs useful or detrimental to achieving genuine emissions reductions and environmental sustainability goals? ♻ How important is that a company's corporate strategy aligns with sustainability? 👨💼 Leave your opinion in the comments! Read the full article by Steven Downes here! https://lnkd.in/esBSE4rn #CarbonOffsetting #ClimateAction #Sustainability #CorporateResponsibility

The Science Based Targets initiative (SBTi) maintains restrictions on the use of carbon credits for meeting climate goals, emphasizing a lack of scientific support for broadening their use. Despite pressures, SBTi's stance aligns with ensuring companies prioritize direct emissions reductions over purchasing offsets. Critics of carbon credits argue they detract from essential emission reductions and raise concerns about the quality of available offsets. https://lnkd.in/gvAE-UMn #SBTi #climatecredits

🚨 SBTi's game-changing announcement is set to revolutionize the carbon markets and redefine the Net-Zero standard. SBTi's recent announcement now allows the use of carbon offsets to meet Scope 3 abatement targets! This marks a significant shift in its approach towards addressing Scope 3 emissions. Until now, SBTi only allowed the use of carbon credits to offset 10% of the residual unavoidable emissions after a company has successfully met 90% of its net-zero target. What does this mean for the Net-Zero standard and the carbon markets? Expect the demand for carbon credits to take off! 🚀 With companies under SBTi targets emitting a staggering 30 billion tonnes of CO2 (27 billion from Scope 3 alone!), even a 10% offset allowance could create a demand for 2.7 billion credits. 📈 Even if all companies with targets do not choose to exhaust their offsetting quota (yet to be defined by SBTi), we can expect the demand addition to be substantial. As more companies set ambitious Net-Zero targets, the demand pool for VCM is set to expand like never before. 🎯 https://lnkd.in/dBcFCgYz #NetZero #CarbonCredits #SBTi #ClimateAction

The SBTi's decision to allow carbon credits for Scope 3 emissions offsetting could significantly impact the demand for carbon credits and the projects that generate them. https://lnkd.in/gd5YbNH7 #ClimateAction #SBTi #CarbonCredits

This week the SBTi announced that it has decided to increase the limits on the use of carbon offsets to tackle scope 3 abatement within the Corporate Net-Zero Standard. The SBTi’s decision came as a surprise and has received mixed reviews, but it seems the decision has been pushed through for application in less than 3 months (July 2024) We are left with several questions, such as: ❓ How far will the limits expected to increase and across which sectors? ❓How does this impact companies that have already set more challenging targets? ❓How does this result in a flow of capital to the right areas to support corporate decarbonisation? ❓Is this really a science-based solution? CEN-ESG seeks to provide practical and commercial solutions for businesses to meeting the SBTi’s criteria on decarbonisation. Decarbonisation of the global economy is hard and not all the answers are available to us today. The existing Standard encourages the discovery of far-reaching ideas and technologies that will be required to achieve this. https://lnkd.in/eg5Cw6zB