?? The SBTi stalls as we pass Earth Overshoot Day

Hi there,

On July 30, the?Science-Based Targets initiative shared four new documents as part of its Corporate Net-Zero Standard review and delayed its decision-making on the corporate use of carbon credits to support Scope 3 emissions until 2025. Just 48 hours later, we arrived at Earth Overshoot Day – the point at which our collective use of the planet’s resources exceeds that which can be reasonably regenerated this year.

Calculated by Global Footprint Network , the day of earth overshoot changes annually. The later in the year, the closer we are to living within our planet’s finite limits. If it falls sooner, it signals humanity is placing a greater demand upon the world’s ecological resources.?We would need the resources of approximately 1.75 Earths to sustain the level of consumption displayed this year.

At this time of environmental crisis, we need to deploy every tool available to cut emissions and live sustainably. There is simply no time for the SBTi's indecision.?

Since its reports have landed, the media – both traditional and social – has been awash with commentary. Our CEO, Ana Haurie, has shared her perspective which you can read in the?Respira News section below. Our top picks from SBTi news can be found in our Newsflash.

Newsflash

• Reuters covers the SBTi releases, leading with the news that the organisation did not find 'enough evidence' to change its Scope 3 approach.
• Carbon Pulse says that the use of carbon credits for Scope 3s is still on the table after this release from the SBTi.
• Nathan Truitt highlights a few new ideas from the SBTi's releases saying: “For the first time (I think) the idea that credits could be used as ways to validate scope 3 emissions reductions within the value chain (aka insetting) was publicly included in a document by SBTi."
• Ben Rattenbury says that the SBTi has included some decent ideas in its publications, but that the organisation will matter less and less as time goes on.
• In non-SBTi news, the FAO has released its 2024 State of the World’s Forests report.
• Carbon Pulse reports on the launch of the ICVCM’s new forum for Indigenous People and local communities. It aims to give these groups a stronger voice in the VCM and more equitable revenue sharing. Read the release statement here .
• QCI publishes Steve Zwick's response to the Washington Post’s carbon credit investigation, explaining the errors in the reporting.
• Sandeep Roy Choudhury calls for less talk, more action in a new article on LinkedIn.
• Verra launches an ABACUS label for restoration and reforestation credits.
• Bloomberg Law covers Biden’s plans to crowd in private finance for carbon markets.
• BusinessGreen shares a piece by David King, Chair of the Climate Change Advisor Group. He presents a vision for transforming the VCM.
• BusinessGreen says that reforestation is ‘10 times’ more effective for climate than previously thought.
• Bloomberg covers Barclay’s calls for Starmer to lead on climate tech.
• Carbon Pulse shares that India is expanding its list of eligible activities under Article 6.2 and adds a list for 6.4.
• The FT reports that the UN is opposing the corporate use of carbon credits to cancel out their carbon dioxide footprints.?Nathan Truitt shares an insightful take on this news on LinkedIn.
• Carbon Pulse announces that the VCMI will consult on Scope 3 claims in September and October.
• The WSJ writes that cash is drying up for people fighting climate change in the Global South as the VCM slumps.
• And finally...a podcast.?Eco-Business interviews David Antonioli about his transition finance report.?

Don't miss this report

Science-Based Targets initiative: Aligning corporate value chains to global climate goals

What's new? Given the past few days, it would be nonsensical to summarise any report other than the SBTi's Discussion Paper.?

At 100 pages long, this document certainly didn't feel editorially confined! It is a lengthy exploration of the possibility of corporates using carbon credits to support their Scope 3 emissions reduction efforts.

Did the paper clarify whether carbon credits can count toward Scope 3 emission reduction efforts? In short, no. Displaying some highly evolved pontificating skills, the SBTi delayed this decision until 2025.

Ah, so what did the discussion paper say? It reviewed Scope 3 target setting in SBTi standards and discussed the challenges of implementation. It considered different options currently on the table to better Scope 3 target setting and discussed how these proposals could be operationalised.

What options are on the table?

The first idea is to create a better set of tools with which to address Scope 3 emissions. This would mean measuring beyond tCO2e and assessing how a company's activities align with global climate goals.

It also proposes updates to target-setting methods and boundaries, as well as ways to assess the level of influence a company has over the different emissions sources in its value chain.

What's the word on the street? Obviously reactions to the SBTi's publication have differed considerably but many are extremely concerned that the final decision on carbon credits for scope 3 has been pushed to 2025 at environmental crunch time.

There remain just over five years until the world should hit its 2030 decarbonisation targets. There really is no time to delay.

What else did the SBTi publish this week? This paper is just one of the four documents the organisation released. It also shared:

1. A collection of evidence ?on the effectiveness of Environmental Attribute Certificates.?
2. The first of three planned synthesis?reports on the effectiveness of Environmental Attribute Certificates. This release focuses on carbon credits.?
3. A statement on the findings of an independent literature review that sought to understand the effectiveness of corporate carbon crediting as an alternative to direct emissions abatement.

Carbon crediting as an alternative to emissions abatement seems wrong. What's the deal here??The research question in the SBTi's literature review has been the subject of much critique. For starters, some are saying the question itself was phrased badly and that it is hardly surprising it yielded little information.

News from the field

Carbon revenue used to boost business in Ntakata Mountains, Tanzania

Carbon Tanzania shares a video interview with Verona Ponsiana, a beneficiary of carbon revenue from Ntakata Mountains, one of our flagship portfolio projects. Verona describes how carbon revenue boosted her COCOBA loan and helped her to grow her business. At first, she borrowed 2 million Tanzanian shillings and used a portion to purchase a flour mill. Then she borrowed 8 million to buy a motorcycle for herself and a colleague to complete their business trips.

Minister and State Commissioner visit BURN's cookstove facility in Nigeria

BURN reports that the Minister of State for Environment and Kano State Commissioner visited its facility in Kano, Nigeria. The two officials commended BURN’s work and its alignment with Nigeria’s climate and sustainability agenda.

Respira's news

Respira's CEO deems the SBTi's 2025 delay 'unacceptable'

Following the STBi news, our CEO Ana Haurie said:

“This was the moment for SBTi to step up and provide some much-needed leadership in global net-zero efforts - but the discussion paper released today does little to provide clarity for businesses looking to make a positive impact on the environment.

While it was promising to see positive scenarios for how carbon credits can be used effectively by businesses, the conclusions drawn and the guidance offered are frustratingly unclear, and the progress is disappointingly slow - 2025 is unacceptable in a world where lack of clarity from SBTi is inhibiting corporate climate action.

High-integrity carbon credits are critical tools in combatting climate change and companies need clear guidance on how they can use them for emissions that are hard to abate. Air New Zealand’s announcement that they are withdrawing from SBTi is an example of how current guidance is failing the planet. Instead of employing carbon credits as a helpful tool when faced with difficult sustainability goals, businesses are choosing to abandon net zero targets altogether.

The planet can’t wait any longer for people to define the right way to cut carbon emissions. While the SBTi catches up, leaders and businesses must step up and get on with real action. Corporate leadership on climate means science-based strategies to reduce emissions AND invest in high-quality carbon credits.”

Dates for the diary

• On the 14th and 15th of August, Mexico Carbon Forum , organised by MexiCO2 and GTO, will happen in?Guanajuato.
• Between the 15th and 16th of August, the Carbon Market Institute is hosting the Singapore Carbon Market & Investor Forum .
• On the 4 and 5th of September, the Financial Times is bringing the?Moral Money Summit Asia to?Singapore.
• Between the 10th and 12th of September,?Innovate4Climate will be in Berlin.?
• For all our London-based colleagues, we'd like to flag the Carbon Unbound Europe | CDR Leadership Summit , which will take place in the capital on the 11th and 12th of September.?
• Argus Media will be in?Monterey between the 16th and 18th of September for its? Argus North America Biofuels, LCFS & Carbon Markets Summit .

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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.?