Comment: Why the SBTi’s proposal to include carbon credits is on the right side of climate history
The world faces a stark reality: thousands of companies have now made commitments to cut their emissions in half by 2030 and reach net zero by 2050. Yet the money hasn’t followed.
April 24 - The recent statement from the board of the Science Based Targets initiative (SBTi) that it will consider recognizing environmental attribute certificates, including carbon credits, for abatement purposes in tackling value chain emissions, marks a significant milestone in the global battle against climate change. This is a bold step that will help accelerate corporate climate action around the world.
The world faces a stark reality: thousands of companies have now made commitments to cut their emissions in half by 2030 and reach net zero by 2050. Yet the money hasn’t followed. While the number of companies committed to SBTi targets increased by more than 500% from 2018 to 2023, annual corporate climate finance increased only 5% during this same period, from $183 billion to $192 billion.
This disconnect is further reflected by the fact that fewer than half of S&P 500 companies reporting to CDP are on track to meet their stated climate targets. And according to research by Accenture, just 18% of companies are on track to reach net zero by 2050. Meanwhile, 2023 was the hottest year to date, with temperatures shattering global records.
The scientific ( article continues at Reuters )