SBTi Board Approves Expanded Use of Carbon Credits for Scope 3 Abatement
The SBTi Board of Trustees announced a policy shift allowing environmental attribute certificates to be used for abatement of Scope 3 emissions, extending beyond current limits. The decision comes with a commitment to define specific guardrails, thresholds, and governance rules before any change to existing standards takes effect.
The April 2024 statement marked a significant policy signal, acknowledging that EACs — including voluntary carbon credits — could function as an additional tool to tackle Scope 3 emissions when supported by rigorous scientific standards and governance. The Board's position was that SBTi would not validate carbon credit quality itself, but would instead define demand-side guardrails and rules to guide their use. Cooperation agreements with other standard-setting initiatives were also planned. A clarification issued on 12 April 2024 confirmed no current standard had been changed.
The announcement followed a six-month consultative effort and a review of Call for Evidence results on EAC effectiveness. Scope 3 emissions — those occurring in company value chains, not under direct company control — represent, on average, 11.4 times the magnitude of a company's direct emissions according to CDP. For Indian companies with complex global supply chains, the potential use of EACs for Scope 3 abatement could offer a more practical pathway to compliance with internationally recognised net-zero targets.
A first draft of basic rules, thresholds, and guardrails for EAC use in Scope 3 abatement was due by July 2024 as part of the standard revision process. The draft will be subject to public consultation before the Technical Council reviews and the Board of Trustees formally adopts any changes. The SBTi emphasised the policy shift is designed to accelerate value-chain decarbonisation while companies pursue emissions elimination through innovation, framing EAC use as complementary rather than a substitute for direct reductions.
Key figure — July 2024 deadline for first draft of EAC guardrails and Scope 3 thresholds
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