SBTi's new carbon credit standard: demand boost or death knell for carbon markets?

The Science Based Targets initiative (SBTi) has released a new standard that explicitly mentions a role for carbon credits for the first time. However, the credits cannot count towards company targets. This has sparked debate about whether the move will boost demand for carbon credits or undermine the market by limiting their use. Industry experts are divided. Some see the standard as a positive step that legitimizes carbon credits as a tool for 'ongoing emissions responsibilities' outside of core targets. Others worry it could reduce demand by restricting how credits can be used. The standard introduces a badge system for companies that purchase credits, with different attainment levels. The article explores the internal divisions within SBTi over offsets and what this means for the future of carbon markets. It is a key read for anyone tracking carbon credit policy and corporate climate commitments.