SBTi Opens Evidence Review on Environmental Attribute Certificates in Climate Targets

The Science Based Targets initiative published a statement on environmental attribute certificates, including voluntary carbon credits, outlining its evidence-based approach to determining whether such instruments can credibly drive decarbonisation. The statement reaffirmed the mitigation hierarchy — prioritising direct emissions reduction — while acknowledging EACs' potential role when backed by robust scientific evidence.

The November 2023 statement noted that around 4,000 companies and financial institutions had validated science-based targets, with a further 2,000 having committed to do so. As corporate focus shifts from target adoption to implementation, the SBTi stated that the approaches companies take have material implications for strategic, financial and operational decisions. The initiative confirmed it was in the final stage of approving its Beyond Value Chain Mitigation guidance, following a completed public consultation, and made clear it would not validate BVCM claims itself.

The SBTi's position on EACs held that their use must be grounded in objective evidence and well-defined policies, and that any change to standards must follow the SBTi's governance process. A public Call for Evidence on the effectiveness of EACs in corporate climate targets had been conducted to gather scientific data. The statement indicated that evidence on the effectiveness of these instruments would inform their potential use in SBTi standards, with any revisions subject to full stakeholder consultation.

The statement foreshadowed the April 2024 Board of Trustees decision to extend EAC use for Scope 3 abatement purposes, which also came with a commitment to define guardrails and thresholds through a structured governance process. The SBTi positioned itself as a science-driven, evidence-based organisation that would not be driven by advocacy on either side of the EAC debate. All changes to standards would be coordinated across relevant stakeholders to ensure a fully aligned approach to emissions accounting.

Key figure — 4,000 companies with validated targets, 2,000 more committed, as of November 2023