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The world leader in setting corporate climate targets has backed down after an employee revolt over its support for controversial carbon credits as a way to tackle greenhouse gas emissions.
The Science Based Targets Initiative issued a statement on Friday saying there was “no change” to its standards, after saying three days earlier that companies would be able to use carbon offsets to meet their climate goals.
The decision to allow offsets was supported by SBTi's funder, the Bezos Earth Fund, a big supporter of U.S. efforts to boost the market for carbon credits in exchange for replacing fossil-fueled energy systems.
Luiz Amaral, SBTi's chief executive, said in a meeting with members of its technical board that the group's guidance had not changed, and a formal draft of a set of rules on carbon offsetting was expected in July, according to an email received by staff on Friday. .
Voluntary carbon credits are intended to represent tons of carbon removed or reduced from the atmosphere, for example through tree planting projects. But the crucial issue of how to store carbon permanently is debatable, as is the risk of double counting.
Members of those groups said in a letter sent to trustees on Friday that the compensation policy was set by the board without consultation with SBTi's technical and advisory groups.
Any changes to the standards will follow governance procedures including public consultation, the SBTi statement said.
A wide range of interests, including corporations and financial services groups, have tried for several years to develop voluntary carbon markets to finance the transition to clean energy.
It is separate from the regulated market of government-issued permits that allow a limited amount of carbon dioxide emissions from large polluters, such as steel, cement, and industrial manufacturers.
“SBTi is a learning organisation, as it moves from initiative to setting voluntary standards,” she said in a statement to the Financial Times, adding that there had been a “misunderstanding” of her position on reparations.
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