The Concept of Additionality:
Additionality is a crucial concept in the realm of carbon offsets and emissions reductions. It ensures that the emission reductions achieved by a project are above and beyond what would have occurred in the absence of the project. In simpler terms, a project is additional if it would not have happened without the incentive provided by the carbon credits.
Additionality in the SBTi Framework:
The Science Based Targets initiative (SBTi) integrates the concept of additionality into its guidelines to ensure that corporate climate actions contribute genuinely to emission reductions. SBTi’s framework demands rigorous standards to validate that corporate targets align with the goals of the Paris Agreement, limiting global warming to 1.5°C above pre-industrial levels.
Three Types of Additionality Offered by Dynamic:
Dynamic goes a step further by ensuring its carbon offsets provide three types of additionality, enhancing the credibility and impact of its projects:
1. Environmental Additionality: Projects must generate a net positive environmental impact that would not occur without the carbon offset initiative. This ensures the environmental benefits are real and measurable.
2. Economic Additionality: Projects should be financially dependent on the revenue generated from carbon credits. This guarantees that the project is economically viable and would not be undertaken without this financial support.
3. Social Additionality: Projects must deliver social benefits such as job creation, community development, or other positive social impacts. This ensures that the projects contribute to the well-being of local communities involved.
The Importance of High-Quality Offsets:
The recent support for carbon offsets by the U.S. government highlights the need for high-quality offsets that can withstand scrutiny and deliver real benefits. Dynamic’s approach, focusing on rigorous additionality standards, addresses common criticisms of carbon offsets, such as the permanence of carbon sequestration and the prevention of double counting.
Path Forward with SBTi and Dynamic:
As businesses and governments increasingly adopt carbon offsets, the focus must remain on ensuring these offsets are of high quality. Dynamic’s commitment to providing offsets with environmental, economic, and social additionality sets a high standard in the industry. Meanwhile, the SBTi continues to develop and refine its guidelines to ensure that corporate climate actions are science-based and credible, promoting a transition to a low-carbon economy.
For more detailed information on setting science-based targets and ensuring additionality in carbon offsets, you can explore the SBTi’s resources and guidelines on their official website.
