?? IETA, SBTi, ICVCM...and more!
It's hardly surprising that the Science-based Targets initiative (SBTi) debate has continued over the past two weeks. Since you last heard from us, many more experts (and let's face it, non-experts too!) have offered their views.
To recap, on the 9th of April, SBTi's board announced an intention?to allow environmental attribute certificates (including carbon credits) to cover a portion of a company's Scope 3 emissions targets. While many people welcomed the news, another group was not, to put it mildly, best pleased.
Amid the clamor of competing perspectives, the market risked missing the views of many people who are a) most impacted by the climate crisis and b) hold the most expertise on solutions. A group of organisations from the Global South penned an open letter in support of the SBTi's board of trustees. At Respira, we would like to support these organisations and encourage others to amplify their message. You can read about it on Carbon Tanzania's LinkedIn?here or in Reuters here.
Another expert we'd like to applaud is Amy Zell. She wrote on LinkedIn that the SBTi debate is missing the point by focusing on what credit buyers can, or can’t, say. She pertinently reminds the market that the real point of carbon credits is to drive finance to emission reduction activities.
Newsflash
What's new??IETA has released guidelines to help companies incorporate carbon credits into their decarbonisation strategies with integrity.
So what? This is very positive news for the climate. Not only do these guidelines promote ambitious corporate decarbonisation, but they also reinforce the important role high-quality carbon credits can play on this journey.
Any new facts from the guidelines? Yes definitely! In collaboration with AlliedOffsets, IETA found that a massive 81 percent of companies still haven’t set any climate targets. Now is it clear why these guidelines are urgently needed?
Specifically, what does IETA recommend for corporates? Okay, we'll run you through each in turn.
Guideline one:?Demonstrate support for the Paris Agreement Goals.?This means that companies should situate their decarbonisation strategy within the global context of the climate crisis. Targets should be aligned with net zero and include ambitious interim targets.
Guideline two: Quantify and publicly disclose scope 1, 2 and 3 emissions profiles.?This is necessary for companies to understand their baseline emissions and to be publicly accountable for their progress.
Guideline three: Establish a net zero decarbonisation pathway and near-term targets. Targets should be science-based, informed by the IPCC AR6 report and achievable, eg. not an 'empty target'.
Guideline four:?Use carbon credits in line with the mitigation hierarchy.?This one's key. It means that companies should first avoid and reduce emissions before they utilise carbon credits.
Guideline five: Ensure that only high-quality carbon credits are used. This means running thorough due diligence prior to purchase. It recognises the differing yet important roles of avoidance?and?removals credits. Companies should look for third-party quality verification, such as that of ICROA or the ICVCM.?
Guideline six: Transparently disclose use of carbon credits.?Clear disclosure of high-integrity decarbonisation, aligned with the VCMI's Claims Code of Practice, encourages climate laggards to take much-needed emission reduction.?
Is there a key takeaway? Yes, among the companies that have set targets, their Scope 1 and 2 emission reduction goals have been exceeded by an average of 26 percent per year. The guidelines remind us that this shortfall could be mitigated, in part, using high-integrity carbon credit purchases.
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News from the field
The ICVCM has released a video interviewing people from Indigenous backgrounds on the benefits they have felt from carbon finance. Isack Bryson, Project Manager at Carbon Tanzania features. You can watch it?here.
Mongabay reports on Gola Rainforest Conservation in a recent article. It says: “Independent evaluations have found that the REDD+ program has slowed deforestation, increased household incomes, and avoided 340,000 metric tons of CO2 emissions annually — all while enjoying support from local communities".
With its distinctive ringed plumage, the small Indian White-eye (Zosterops Palpebrosu) is thriving Delta Blue Carbon's project area. This little bird has adapted to life in Karachi’s mangroves, foraging for insects amongst their leaves.? As well as food sources, mangroves provide the Indian White-eyes with nesting sites. Among the mangroves, the birds are protected from predators and can build nests among the tree roots in relative safety.
Respira's News
Our CEO, Ana Haurie, is given the last word in a recent article on the SBTi board's announcement. She reiterates the crucial need for forest conservation to counter continued carbon emissions. Ana says that clarity from the SBTi would help boost support for high-quality REDD+ and nature-based climate solutions, but warns that confusion and deterrence creates a "lose-lose" scenario for the planet.
Dates for the diary
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Respira International is an impact-driven carbon finance business. Respira’s high-quality carbon credits allow corporations and financial institutions to mitigate their environmental impact. Respira channels private capital into climate solutions ensuring long-term relationships with trusted carbon project developers that enable its clients to use predominantly nature-based solutions to build sustainable, climate-positive businesses and portfolios. Respira’s team combines deep and varied experience working in global financial markets with a robust understanding of carbon project development in leading international conservation organisations. Respira operates with an innovative offtake and profit share model which reinvests back into local communities.?