Why in the news?

The recent gathering of major funders and promoters of the carbon offsets market in London raised concerns about the role of the Science Based Targets initiative (SBTi) in limiting the market’s growth.
SBTi’s stringent criteria for net-zero plans have made it a gold standard in emissions accountability, but some argue it hinders the potential of carbon offsets in combating climate change.

What is Carbon Offset?

A carbon offset broadly refers to a reduction in GHG emissions – or an increase in carbon storage (e.g., through land restoration or the planting of trees) – that is used to compensate for emissions that occur elsewhere.
A carbon offset credit is a transferrable instrument certified by governments or independent certification bodies to represent an emission reduction of one metric tonne of CO2, or an equivalent amount of other GHGs.

The SBTi is a collaborative effort spearheaded by four international organizations:

The SBTi focuses on assisting companies in setting ambitious and scientifically sound greenhouse gas (GHG) emission reduction targets.

	Details
Purpose	To drive ambitious corporate action on climate change by providing a framework for setting science-based targets aligned with the Paris Agreement goals.
Launch Year	2015
Founding Organizations	Carbon Disclosure Project (CDP), United Nations Global Compact (UNGC), World Resources Institute (WRI), and World Wide Fund for Nature (WWF).
Methodologies	SBTi offers guidelines and methodologies for companies to set targets that are consistent with the latest climate science and contribute to limiting global warming.
Global Reach	Engages with companies worldwide, collaborating with partners across sectors, regions, and industries to promote adoption of science-based targets.
Recognition	Recognized as a leading platform for corporate climate action; Companies comply to set science-based targets and reduce greenhouse gas emissions; Updates and refines its methodologies and verification processes to reflect advances in climate science and best practices in emissions reduction.

[2021] The ‘Common Carbon Metric’, Supported by UNEP, had been developed for:

(a) Assessing the carbon footprint of building operations around the world.

(b) Enabling commercial farming entities around the world to enter carbon emission trading.

(d) Assessing the overall carbon footprint caused by the use of fossil fuels by the world in a unit time.