Will avoided emissions considered as an offset option in the final Financial Net-Zero Standard?

Net Zero for FIs
1

Hi there,

According to the ‘Foundations for Science-Based Net-Zero Target Setting in the Financial Sector’, it seems that avoided emissions cannot be included in SBT targets and it is not viewed as a credible option for consistent, transparent, science-based net-zero targets.

However, it is included as one of the mitigation strategies on p.34-35. Will avoided emissions be included in offset options in the ‘final Financial Net-Zero Standard’?

More specifically, with regard to financing Renewable Energy projects, would our client be able to count the “avoided emissions” from providing financing to the renewable energy projects to partially negate the emissions and make contribution to the science based target?

Many thanks,
Sea Jin

2

Avoided emissions, along with other metrics will be evaluated as part of the net-zero standard development. However, avoided emissions cannot be used by FIs for S1+2 or by companies to achieve any of their near term SBT emission reduction targets.