Utilizing Environmental Attribute Certificates to Reduce Scope 3 Greenhouse Gas Emissions: A Perspective from SBTi

Greenhouse gas (GHG) emission reduction is a global priority. Achieving this goal necessitates effective tools and strategies. Recently, the use of voluntary environmental certificates, particularly in the carbon market, has emerged as a method for organizations and businesses to reduce Scope 3 GHG emissions.

About SBTi (Science Based Targets initiative)

The Science Based Targets initiative (SBTi) is an international organization that supports and encourages companies to set science-based GHG reduction targets. It aims to drive global companies to halve emissions by 2030 and achieve net zero by 2050.

Key Points of SBTi's Statement

Companies can use Environmental Attribute Certificates (EACs) as an additional tool to mitigate GHG emissions in their supply chain, but they should not replace direct emissions reductions. This is the crux of the statement from the Science Based Targets initiative (SBTi) Board of Directors. 

In this statement, SBTi has laid out its official position on the importance of ensuring the validity and effectiveness of environmental certificates (EACs) for Scope 3 GHG reduction purposes. As a leading organization in setting and promoting science-based climate targets, their statement carries significant weight and credibility in this domain.

How EACs (Environmental Attribute Certificates) Work?

Environmental Attribute Certificates (EACs) are a tool with potential for Scope 3 GHG mitigation. EACs represent environmental attributes associated with the production of clean energy or avoided GHG emissions. When a company purchases EACs, it is supporting emissions reduction projects, such as renewable energy or energy efficiency projects.

SBTi Encourages Responsible EAC Usage

While SBTi acknowledges the potential of EACs in emissions reduction, the organization also points out that using environmental certificates cannot be the sole solution. It is just one part of an organization or business's overall GHG reduction strategy. Additionally, transparency and scientific substantiation need to be ensured to guarantee that emissions reduction measures are implemented effectively and fairly. SBTi highlights key considerations:

• EAC Quality: Companies must verify EACs' origin and genuine impact on GHG reduction.
• Transparency: EAC usage should be transparent and clearly reported in GHG reduction targets.
• Accountability: EAC purchases should not be used to "offset" a company's emission reduction responsibilities.

Conclusion

The SBTi's statement is a significant step in guiding and shaping the international community's approach to using environmental certificates for Scope 3 GHG reductions. This aligns with the broader global effort to address climate change. Only then can we make substantial progress in mitigating climate change's impact and building a sustainable future for our planet.

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