Open door for carbon removal credits to offset emissions
As negative carbon technologies gain more attention, the SBTi also proposes including carbon removal as a method for companies to meet their emission reduction goals.
However, carbon removal can only be used to offset residual emissions that are difficult to reduce after all other mitigation measures have been exhausted. The draft outlines three regulatory approaches for carbon removal:
- Companies will be required to set both short-term and long-term carbon removal and reduction targets to reduce residual emissions by 2050, and these targets must be validated by SBTi.
- Companies can gain SBTi recognition by setting carbon removal targets.
- Companies will have the option to use carbon removal to reduce residual emissions or reduce emissions within their supply chain, or both.
The draft does not specify which carbon removal technologies can be used but states that acceptance will be based on the durability and emission intensity of the methods.
The revised "Corporate Net-Zero Standard" is expected to undergo further revisions after public consultation ends in June, followed by a second round of consultation and testing with selected companies. The SBTi's technical committee will review the trial results, with the final approval expected by the end of this year and the standard officially taking effect in 2026.
Source: SBTi, Wall Street Journal, edie, Trellis