New guidance from key international agency, the Science Based Targets initiative (SBTi), is an important reminder of the role that corporate investments- in on-site emission reduction and elsewhere in the economy – should play to manage the risks and opportunities of the climate challenge, according to the Carbon Market Institute (CMI).
Released overnight, the guidance recommends that as a complement to companies avoiding and reducing on-site emissions and those with within their value or supply chains, they should also invest in climate solutions beyond their business, referred to as beyond value chain mitigation (BVCM), to accelerate whole-of-economy emissions reductions on the path to net zero emissions.
The report follows the University of Oxford’s revised principles for net zero-aligned carbon offsetting released this week, which also called for a course correction in the use of carbon markets.
CMI CEO John Connor said the reports reflect clear prevailing winds in the way companies are expected to approach their emissions reductions strategies, including the role that carbon markets can play in this shift:
“The SBTi guidance forms part of a growing momentum shift, whereby companies are expected to not only reduce their on-site and value-chain footprint, but also find ways to viably work towards economy-wide net zero goals.”
“This is part of a vital inflection point in the understanding of corporate responsibilities and carbon markets. It signals a clear direction of travel with growing expectations that companies need to invest in emissions reductions in house and across the economy as they take responsibility for their emissions, en route to net zero emissions.”
“Best practice on carbon markets is re-aligning with this shift with a focus on high integrity carbon crediting and markets as a vehicle for investments in business and national net zero pathways.”
About the Carbon Market Institute
The Carbon Market Institute (CMI) is a member-based institute accelerating the transition towards a negative emissions, nature positive world. It champions best practice in carbon markets and climate policy, and its 150+ members include primary producers, carbon project developers, Indigenous organisations, legal, technology and advisory services, insurers, banks, investors, corporate entities and emission intensive industries. The positions put forward constitute CMI’s independent view and do not purport to represent any CMI individual, member company, or industry sector.
