The Science Based Targets Initiative’s Scope 3 Requirements: A Discussion Paper

In July 2024 The World Wildlife Fund (WWF) published a discussion paper on the SBTi’s proposed revisions to its Scope 3 requirements. WWF emphasised that it promotes, first and foremost, a reduction of value chain emissions. It restates its support for carbon credits being used to support within value chain emission reduction but only supports their use for outside value chain reduction in the case of residual emissions. However, WWF would like to see companies investing outside of their value chains to support the Global South with additional climate finance.

Study of sustainability leads at large UK businesses

Insurance company, Gallagher, surveyed 100 sustainability business leaders with more than 250 employees. It found that nearly two-thirds will meet their net zero goals by purchasing carbon credits and that they are willing to spend an average of £20 million on carbon credit solutions. This study was published in August 2024.

Statement on effectiveness of corporate carbon offsetting as an alternative to emissions abatement

This is a statement of a literature review commissioned by the SBTi to assess the effectiveness of corporate carbon credit use. Published in July 2024, it has been criticised for its research question that positions carbon credit use as an alternative, rather than an addition, to direct emission reduction from the value chain. NOTE: The paper itself states that there is not enough literature available to credibly answer its research question, and there have been questions about whether that was the right question to ask.

Aligning Corporate value chains to global climate goals

In this paper, the SBTi considers options for changing its rules about carbon credit use for Scope 3 emission reduction target setting. Published in July 2024, it outlines the limitations and potential routes forward that could help corporates mitigate polluting emissions in their supply chains. NOTE: In 2024, the SBTi’s indecision over Scope 3 emissions prompted debate in the VCM.

The urgent need to finance natural climate solutions

This eight-page paper from IETA outlines the urgency with which natural climate solutions need financial backing. Released in June 2024, it presents the climate case: That an estimated 210 GTCO2e of nature-based removals will be needed to limit global warming to 1.5°C, with additional scaling up required until 2050. And the business case: Investments in NCS represent a cost-effective, near-term opportunity to help scale the impact of corporate transitions to net zero.

Fact Sheet: New Principles for High-Integrity Voluntary Carbon Markets

Published by the Biden-Harris Administration in May 2024, this factsheet accompanies the White House’s ‘Joint Statement of Policy and New Principles for Responsible Participation in VCMs’ that confirmed the U.S. government’s approach to advancing high-integrity VCMs. It examples the steps needed to strengthen the VCM to support corporate decarbonisation.

Voluntary Carbon Markets Joint Policy Statement and Principles

In May 2024, the Biden-Harris administration recognised the potential of carbon credits to support decarbonization efforts, both within the US and globally. This includes emission reduction and removal as well as delivering co-benefits for people and biodiversity. This 12-page statement shares a series of principles for voluntary carbon markets and provides an overview of the state of the market until 2024.

Advancing effective and equitable crediting for Natural Climate Solutions

This handbook from the Environmental Defense Fund (EDF) is a guide to unlocking the potential of natural climate solutions. Published in April 2023, it explains natural climate solutions in the context of carbon markets, considering how these mitigation solutions can be scaled. It also addresses the key challenges facing the market at that time.

EU Green Claims Directive

The EU Commission adopted the Green Claims Directive in March 2023 to prevent companies from making misleading claims about their environmental impact. This is relevant to buyers of carbon credits to ensure they abide by the Green Claims Directive when promoting their climate action.

Climate Finance at an Inflection Point

It’s widely recognised that climate solutions need finance. But how can this be achieved? This briefing paper, published by The World Economic Forum in January 2023, considers the state of finance in the voluntary carbon market and makes a series of recommendations to help it scale. These include engaging with the ICVCM and VCMI’s work and publicly declaring participation to help signal demand. It also offers guidance to help businesses build evolving carbon credit portfolios over time.