Our Response to SBTi’s Announcement on Carbon Credits

Green Element Group uses the SBTi Corporate Net-Zero Standard to underpin net-zero strategies for clients. On 9th April 2024, the SBTi Board of Trustees controversially announced that companies could use Environmental Attribute Certificates (EACs), including carbon credits, to ‘abate’ their Scope 3 emissions — rather than engaging with supply chains to collectively reduce.

Why this matters

This is a significant reversal that would undermine the validity of companies’ targets, creating a false impression of global carbon reductions. The SBTi’s Corporate Net-Zero Standard (v.2, March 2024) states clearly that carbon credits must not be counted as emissions reductions toward science-based targets. Credits may only be used for neutralising residual emissions or financing additional climate mitigation.

Our position

Green Element Group regards claiming carbon reductions through offsets as greenwash at best, and at worst as harmful to indigenous people and infringing climate justice principles. Offsets either remove no physical carbon at all, or do not remove the claimed tonnage within a specified timeframe. 73% of carbon offset projects don’t remove the quantity they claim. The SBTi’s staff, Technical Council, and advisory groups were not consulted about this decision and called for the statement to be withdrawn.