Employees in a UN-backed nonprofit have found carbon offsets largely ineffective for reducing greenhouse gas emissions in supply chains
A confidential draft at a UN-backed non-profit that audits companies for their emission reduction plans revealed that its staff found carbon offsets largely ineffective for reducing greenhouse gas emissions in supply chains, per a Reuters investigation.
Staff at the Science-Based Targets initiative (SBTi) revolted last month when the organization’s board prematurely proposed that companies should be allowed to use the plan to offset their emissions.
The staff was yet to conclude their research on the carbon credits framework.
What are carbon offsets?
Carbon offsets typically involve funding projects that reduce or remove greenhouse gas emissions elsewhere, like renewable energy projects, reforestation, and other green energy initiatives.
In doing so, in theory, companies counterbalance emissions and help neutralize their carbon footprint.
However, the draft from SBTi employees cites evidence showing failures in offset projects, like one in the Brazilian Amazon, to mitigate forest loss. There were discrepancies between claimed and actual emission reductions.
Notably, SBTi’s carbon credit plans also face pressure from financial backers like the Bezos Earth Fund and US climate envoy John Kerry to be quickly adopted to encourage investment in clean energy.
However, concerns persist about the quality and efficacy of these offsets.