How to set emission reduction targets with can really impact the global weather – The SBTi way

What is SBTi?

The Science Based Targets initiative (SBTi) is a corporate climate action organization that enables companies and financial institutions worldwide to play their part in combating the climate crisis. They have developed scientific models to estimate the emission reduction targets considering the probable industrial growth scenarios of global economy.

The target setting methods and models

There are separate sector specific models as well as a common or general model for calculation of emission reduction rates for any organization belonging to that category. The sector specific models target a convergence of emission intensity. So, it can recommend different emission reduction rates to different organizations based on their initial emission intensity. This model targets to reach a particular emission intensity (kg of CO2e emissions / unit of production) for all organizations of a sector within an accepted time frame. This approach is called Sectoral Decarbonisation approach (SDA).

For organizations, where sector specific guidance is not published, they can adopt the Abosute Based Approach (ABA), where the annual GHG emissions reduction target is fixed at 4.2% (Linear annual reduction rate). Sector specific guidance are published for Aviation, Apparels, Cement, Power, Steel, Financial institutions, Information and Communication technology and few more (Standards and guidance - Science Based Targets Initiative) sectors. Guidance’s on Aluminium, Oil and Gas, Chemicals, Buildings and some more are in development stage.

1.5°C and Net zero Scenarios

For near term and long term target setting, SBTi provides two scenarios: One scenario is to reduce enough to restrict global temperature rise to 1.5°C and the other scenario is Net zero emissions. In first case, the emission reductions rates are set in relation to the organization’s contribution to global warming. The second scenario is targeting net zero emissions of the organization within an agreed timeframe, irrespective of their base year emission levels. Offsets or carbon credits bought out from market is not considered as emission reduction for either cases.

Process for setting SBTi targets

There are 4 steps defined by SBTi for setting and accepting the target. Initially, organisations are supposed to send their commitment to SBTi. Then, using the models the targets can be set and shared with them. These targets undergo validation from competent personnel engaged by them and upon approval, the organisation gets the recognition of the set target based on the SBTi approach.

Conclusion

Though reduction of GHG or carbon emissions is everyone’s responsibility, waiting for everyone else to take the step is not a solution. A responsible organisation puts a step forward which encourages other to follow. To create a real impact, the targets should be set suitably and scientifically. The available SBTi method is one of the available methods which helps to determine the extent to which the reduction rates to be set to achieve the target GHG reductions.

Target setting is not the end of it, the next job is the real challenge – i.e. to meet the target which has been set. Organisations are expected to publicly publish their achievement towards meeting the target, every year.

At present, this process is voluntary. Do you think it should be made mandatory for the industries and the governments? Should there be differentiation in targets based on the type, scale, size or location of the same?