The Science Based Targets initiative (SBTi), the leading authority on corporate climate goals, has released new research that suggests carbon credits may not be effective for offsetting value chain emissions. This marks a significant shift from earlier plans, which had proposed a broader role for carbon credits.
The SBTi’s review, based on various third-party studies, finds that many carbon credits fall short of delivering the intended environmental benefits. This revelation suggests that reliance on carbon credits might hinder decarbonization efforts and limit the flow of climate finance.
The report’s findings could significantly impact the carbon offset market, which has been scrutinized for its effectiveness in delivering promised emissions reduction.
SBTi’s New Findings Challenge Carbon Credit Market
Founded in 2015, SBTi’s mission is to establish science-based target setting as a standard for corporate climate action. It provides guidelines and validation for companies aiming to meet net zero targets, initially requiring 90-95% decarbonization by 2050 and neutralizing remaining emissions.
Earlier this year, SBTi proposed revising its Corporate Net-Zero Standard to include carbon credits for managing Scope 3 emissions, which are the most challenging to control and often represent the majority of a company’s emissions. This proposal led to controversy within SBTi, resulting in staff concerns and calls for leadership changes.
The SBTi board later clarified that any changes regarding carbon credits would be evidence-based and that a discussion paper would be published before finalizing the new standard.
Recent research by SBTi indicates that many carbon credits are “ineffective” in achieving meaningful climate impact and could potentially hinder net-zero progress and reduce climate finance. The research acknowledges the limitations of existing studies but calls for more evidence to better assess the effectiveness of carbon credits.
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The SBTi report highlights that 84% of evidence submissions argue against treating carbon credits as interchangeable with other emission reduction methods, deeming it illogical or counterproductive to global mitigation goals.
Around half of the submissions support contribution claims over offsetting or compensation claims. The SBTi received 111 unique evidence pieces, including research studies and white papers, which will inform updates to its Corporate Net-Zero Standard—a framework guiding corporate decarbonization.
SBTi’s Game Plan: Revising Corporate Net-Zero Standard
The report’s findings are expected to reinforce SBTi’s credibility within the industry, according to experts. They praised the review’s focus on the science of carbon credits, suggesting it restores the SBTi’s relevance in guiding corporate climate action amidst significant external pressures.
Sue Jenny Ehr, the interim CEO of SBTi, stressed that the findings should be viewed within the context of the reviewed evidence, without making broad generalizations. Ehr also said that:
“Targets are the first step to decarbonization and it is important that the SBTi conducts a comprehensive process to revise the Standard to help companies take the lead on climate action and drive down emissions.”
Interim CEO Sue Jenny Ehr stressed the importance of a thorough revision process to support effective climate action and emission reductions.
Alberto Carrillo Pineda, SBTi’s Chief Technical Officer, stated that the review aims to provide a nuanced understanding of the carbon credits debate, which has become highly polarized. Pineda further remarked that the standard-setter stresses the importance of prioritizing direct decarbonization for climate action.
The SBTi plans to release a draft of the revised Corporate Net-Zero Standard for public consultation in late 2024.
A Carbon Credit Market Shake-Up: A Call for Rethinking Emissions Strategies
Ideally, a carbon credit represents a ton of carbon dioxide emissions that have been either removed from or prevented from entering the atmosphere, often through projects like reforestation or renewable energy. It’s also called carbon offsets in voluntary carbon markets.
The carbon credit market, estimated by BloombergNEF to potentially expand from $2 billion to $1 trillion with right rules, is driven by the recognition that companies will struggle to achieve the required emissions reductions to meet the 1.5°C target set by the Paris Agreement.

These market instruments can be valuable if used correctly and if they incentivize the right outcomes, according to Pineda.
Efforts are underway to address the risks associated with carbon credit trading. For instance, new US guidelines aim to restore trust in the voluntary carbon market (VCM), with Treasury Secretary Janet Yellen noting its potential as a powerful tool against climate change if properly regulated. The US Commodity Futures Trading Commission is also preparing to finalize its carbon credit guidance by the end of the year.
In conclusion, the SBTi’s report calls for a more stringent evaluation and application of carbon credits. The initiative’s renewed emphasis on science and rigorous standards aims to ensure that carbon credits contribute meaningfully to climate goals and do not undermine broader decarbonization efforts.
The post How Effective Are Carbon Credits in Corporate Net Zero? SBTi Speaks appeared first on Carbon Credits.
Carbon Footprint
What DECARBON 2026 Reveals About the Industry’s Next Move
The oil and gas industry is moving from intention to action. With a focus on sustainability and operational advancements, this sector is investing in groundbreaking technologies to meet new demands. Find out how the Oil and Gas Decarbonisation Congress (DECARBON) 2026 is driving this transformation and reshaping the global energy landscape.
The oil and gas sector has grown weary of abstract discussions around decarbonisation, hydrogen’s future and other optimistic projections. Grand narratives have done little to solve real-world problems, and industry players are increasingly unwilling to indulge them. Instead, the focus is shifting toward practical, technology-based solutions, even if most are still in their early stages. These changes are a response to pressure for environmental accountability and a direct consequence of the sector’s underlying realities. Specifically, the finite nature of natural resources and the rising costs of extraction have compelled companies to adopt long-term strategies aimed at sustaining profitability and resilience. As a result, investments are finally beginning to flow where they matter most — into technologies that can both curb emissions and sharpen operational efficiency. Rhetoric, it seems, is losing ground to results.
The Oil and Gas Decarbonisation Congress (DECARBON) 2026, held on 9–10 February in Vösendorf, Austria brings together technical specialists, project leaders and technical specialists to examine the most relevant trends and practical approaches to reducing carbon emissions across the upstream, midstream and downstream sectors.
Low-Carbon Hydrogen: Infrastructure and Application
Hydrogen (H₂) is widely recognised as one of the most critical tools in global decarbonisation strategies. According to the International Energy Agency (IEA), low-carbon hydrogen production could reach 180 million tonnes per year by 2050, depending on infrastructure deployment and policy alignment.
While green hydrogen holds great promise, its implementation remains largely aspirational due to current cost barriers. As a result, discussions around hydrogen
must go beyond ideal scenarios to address the market situation. This is why the agenda of the Oil and Gas Decarbonisation Congress 2026 includes a range of hydrogen technologies that are particularly relevant today.
The Congress features a Leaders Panel addressing the development of efficient hydrogen infrastructure, green hydrogen value chain development and foundational processes in low-carbon hydrogen production. Among the speakers are Tamás Mérő, Head of Green Hydrogen Value Chain Management at MOL Group, and Fabio Ferrari, Head of the Circular Carbon and Integration Solutions Department at NextChem, along with other industry leaders.
Digitalisation and Operational Performance
Digital tools have reshaped asset management and environmental monitoring across the energy industry. Automation, AI and real-time analytics have helped reduce emissions, cut OPEX and increase system stability. According to recent reports, technology leaders like Siemens are using digital twins and AI-powered analytics to monitor emissions, optimise system performance and support decarbonisation efforts across various sectors.
This growing emphasis on digital innovation is further reflected in a roundtable session at DECARBON 2026, focused on the role of technology in advancing sustainability objectives. Mario Calado Industry Strategy Lead at Siemens AG, participates in the discussion and shares insights into how digital transformation could be realised. Complementing this, Florian Klein, Business Development Manager for Energy Transition at Linde Advanced Operations Solutions, outlines how companies applied advanced operations systems to reduce energy use and move towards an autonomous plant. Moreover, at the Congress delegates have a chance to learn more about machine learning powered optical gas imaging solutions, P2X technologies, satellite technology and many others.
Electrification in Upstream Operations
Electrification has proved an effective lever for reducing Scope 1 and Scope 2 emissions in upstream operations as it has improved energy management and reduced operational variability.
During the session focused on decarbonisation for upstream operations, Ali Aboosi (Business Development Manager at Chromalox) presents the deployment of electric process heating systems across production assets. Dr. Bo Fu, CEO of Oiler.ai, contributes insights on the machine-learning-powered optical gas imaging solution for real-time methane leak detection and quantification. Additionally, Fayez Al-Mezel, Business Planning Specialist at Kuwait Oil Company, take part in the discussion, offering energy transition strategies for the upstream sector.
Carbon Capture and Storage at Industrial Scale
Carbon Capture, Utilisation and Storage (CCUS) remained a priority for industrial decarbonisation. According to McKinsey & Company, CCUS capacity needs to increase more than 120 times by 2030 to align with global net-zero targets. Progress toward this goal is underway: as of the first quarter of 2025, global operational CCUS capacity reached just over 50 million tonnes of CO₂ per year, reflecting a year-on-year increase.
To showcase how these targets are being addressed in practice, the Closing Panel at DECARBON 2026 presents case-studies from active CCUS projects across Europe, with a focus on integration, commercial readiness and cross-sector collaboration.
Speakers included:
● Dr Marc Scherle, Project Manager, Business Development & Sales, Linde Engineering – Decarbonisation of process industry using Linde technologies
● Phillip Cooper, Project Director, Petrofac – Design of the Aramis CCS pipeline system
● Kleopatra Avraam, Strategic Planning Senior Director, DESFA – Overview of DESFA’s CCS Project, APOLLOCO2
● Andreas Grobler, Strategic CCUS Partnership Manager, Shell Deutschland – Case examples from Shell’s global operations
The discussions at DECARBON 2026 underscore a clear industry pivot: away from theoretical promises and toward credible solutions. Topics like hydrogen infrastructure, digital transformation, upstream electrification and CCUS must be actively evaluated and, in some cases, deployed. Faced with finite resources and
rising operational pressures, the sector is responding not with rhetoric, but with targeted investment in technologies that deliver measurable outcomes. The message of DECARBON 2026 is clear: decarbonisation is not a distant ambition — it’s a competitive edge, and it’s happening now.
As the Congress motto states, “Reimagine the future of energy”, this call remains relevant across all segments of the industry. Explore what’s next with DECARBON 2026: https://sh.bgs.group/39p
The post What DECARBON 2026 Reveals About the Industry’s Next Move appeared first on Carbon Credits.
Carbon Footprint
Three Streams, One Goal: DECARBON 2026 Unites the Oil and Gas Value Chain
At DECARBON 2026, leading companies come together to turn ambition into action — demonstrating the innovations and finding collaborations to drive the transition to a low-carbon future.
The oil and gas industry operates through highly complex systems in which upstream, midstream and downstream segments often follow distinct strategies and priorities. Upstream focuses on exploration and production efficiency, midstream prioritises secure and reliable supply routes, while downstream aims to enhance refining performance and reduce environmental impact. Aligning these three sectors towards a single goal — decarbonisation — remains one of the greatest challenges. Reducing emissions across exploration, transportation and refining requires technological innovation as well as cross-sector collaboration and consistent strategic alignment.
For these goals, the Oil & Gas Decarbonisation Congress (DECARBON) 2026 unites global industry leaders from the whole value chain to exchange practical insights and proven approaches that deliver measurable results. Throughout the Congress, companies across upstream, midstream and downstream share their experiences and innovations from P2X technologies and green hydrogen to AI-powered autonomous plants.
In the upstream-focused session, Kuwait Oil Company offers valuable perspectives on integrating energy transition strategies into exploration and production planning. Fayez Al-Mezel, Business Planning Specialist, delivers the presentation about the integration of energy transition into upstream strategies. He addresses key challenges such as capital-cost dispersion, technology readiness and infrastructure constraints. The speaker outlines mitigation measures, including modular pilot projects, standardised designs and verified data management. This approach demonstrates how strategic planning and transparent performance tracking translate decarbonisation ambitions into efficient, cost-competitive outcomes.
In the midstream discussion, LiveEO (Session Sponsor) highlights digital tools that enhance pipeline safety and sustainability. Nick Ferguson, Chief Evangelist, explains that satellite technology elevates pipeline safety. Drawing on a case study, he demonstrates that combining high-resolution satellite imagery with artificial intelligence enables the detection of 73% of previously unidentified threats and improves prediction accuracy by 80%, supporting proactive risk management and streamlined operations.
Kent participates in the dialogue dedicated to downstream decarbonisation, specifically low-carbon fuels and feedstock. Luigi Crolla, Head of Energy Transition Technologies, explores how integrating electrolytic hydrogen and Reverse Water Gas Shift (RWGS) technologies into waste-to-fuel processes enhances Sustainable Aviation Fuel (SAF) yield and reduces carbon intensity. While Kent operates across multiple energy transition domains, its contribution highlights the importance of technological integration in scaling sustainable fuel production.
By bringing together diverse organisations working across and beyond traditional sector boundaries, DECARBON 2026 creates a unified platform for forward-looking conversation. The Congress underscores that decarbonisation is not the responsibility of one stream alone but a coordinated transformation across the entire oil and gas value chain — from production to refining. Explore the full programme and speaker line-up at: https://sh.bgs.group/3hn
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Carbon Footprint
ReNew Energy to Invest over $9 Billion to Boost Solar, Storage & Green Fuels in Andhra Pradesh
ReNew Energy Global Plc, an Indian renewable energy company, announced it will invest about US$9.33 billion (around ₹82,000 crore) in green energy projects in the southern state of Andhra Pradesh. This is one of the largest private investments in renewable energy in the region. The plan aims to expand India’s clean energy capacity while supporting local industries and jobs.
The investment will focus on key areas of renewable energy. This includes solar, wind, energy storage, and green fuel production. India is shifting from just power generation to a full renewable energy value chain. This multi-pronged approach highlights that change.
The Projects Included in the $9.33B Power Play
ReNew Energy’s projects in Andhra Pradesh are diverse. The company will set up a 6 GW solar ingot and wafer manufacturing plant. This facility will produce essential materials for solar panels. By making them locally, India can reduce its reliance on imports and strengthen its domestic solar industry.
In addition, the company will build a 2 GW pumped-hydro storage system. This storage will allow renewable energy to be saved when the sun isn’t shining or the wind isn’t blowing, making the electricity supply more reliable.
A green ammonia facility will also be built, producing around 300,000 tonnes per year. Green ammonia can be used as a cleaner fuel and for industrial purposes, helping reduce greenhouse gas emissions.
ReNew plans to develop 5 GW of hybrid renewable projects combining wind, solar, and battery storage. These projects aim to maximize energy output and efficiency. Together, all these efforts cover manufacturing, generation, storage, and newer forms of clean energy.
Benefits and Local Wins for Andhra Pradesh
Andhra Pradesh has set ambitious renewable energy targets. The state aims to achieve 78.5 GW of solar, 35 GW of wind, and 25 GWh of battery storage. ReNew Energy’s investment will help move the state closer to these goals.

The projects are expected to create over 10,000 jobs, both directly and indirectly. Jobs will vary from factory work at the solar plant to construction, operations, and maintenance of storage and hybrid projects. The investment will strengthen local supply chains. This gives businesses chances to provide materials, transport, and other services.
By producing solar wafers and ingots locally, the state can also reduce dependency on imported materials. This supports both energy security and the development of local industries.
Sumant Sinha, Founder, Chairman, and CEO, ReNew remarked during the announcement:
“ReNew has a long-standing presence in Andhra Pradesh and with this expansion we are bringing a fully integrated clean energy value chain to the state of Andhra Pradesh, from wafer to large-scale renewable projects and storage deployment…We appreciate the leadership and clear policy direction of the Government of Andhra Pradesh, which makes the state a natural partner in accelerating India’s energy transition and sustainable economic growth.”
Backing India’s Renewable Energy Ambitions
- India has a national target of reaching 500 GW of non-fossil fuel power capacity by 2030.
The world’s third-largest CO2 emitter has the following progress in its renewable power targets.

Investments like ReNew Energy’s are essential to achieving this goal. They provide not just electricity but also infrastructure that supports the country’s shift away from coal and oil.
The company’s plans show that India is moving beyond simply building solar and wind farms. Making solar parts, building storage systems, and producing green fuels are key steps in creating a complete renewable energy ecosystem. This approach also strengthens India’s position in global renewable energy markets.

What are the Key Considerations?
ReNew Energy already operates wind and solar plants in Andhra Pradesh, including 717 MW of wind capacity and 60 MW of solar capacity. The new projects build on earlier investments of about ₹22,000 crore (US$2.5 billion) made in May.
The scale of the projects means careful planning is essential. Building factories and large storage systems requires land, permits, skilled workers, and strong infrastructure. Financing will also need to be managed carefully. It is not yet clear how much funding will come from company funds, loans, or government incentives.
Although the announcement is positive, implementing these projects will take years. The company, state authorities, and other stakeholders will need to work closely to ensure timely completion.
Cleaner Energy, Stronger Economy
The investment could bring both environmental and economic benefits for India. Cleaner electricity means lower greenhouse gas emissions. Local manufacturing reduces the need to import materials, which also lowers carbon footprints from transportation.
Economic benefits include job creation, skill development, and opportunities for local businesses. The green ammonia project could support industries that require cleaner fuels. Battery storage and hybrid projects can boost energy reliability. This benefits both households and industries.
ReNew Energy’s Emission Reduction Moves
ReNew Energy has strengthened its sustainability plans as it works toward becoming a net-zero company by 2040. The company aims to cut almost 90% of its total emissions from its 2022 levels, covering all scopes, including its supply chain.
The company is boosting energy efficiency at its sites. It’s also increasing clean power use and swapping out fossil-fuel equipment for electric options. It is also working with suppliers to adopt science-based climate targets and cleaner transport systems.
ReNew has made progress in recent years. In its latest reporting cycle, it reduced 18.2% of its Scope 1 and 2 emissions and helped avoid 18.6 million tonnes of CO₂ through its renewable projects.

The company now gets 76% of its electricity from renewable sources. It has also saved over 540 million liters of water by focusing on conservation. ReNew’s targets are validated by the Science Based Targets initiative, reflecting stronger accountability and transparency.
Beyond emissions, ReNew also has broader environmental goals:
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It aims to be water-positive by 2030 — meaning it gives back more clean water than it uses.
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It targets zero waste to landfill in its operations.
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It also aims to make a positive social impact, including having 30% women in its workforce and improving ESG
A Benchmark and Bold Step Toward a Low-Carbon India
If successful, ReNew Energy’s investment could serve as a model for other states in India. Private companies can invest in many areas of renewable energy. This includes manufacturing, generation, and storage. The size of the investment shows trust in India’s clean energy policies. It also highlights the country’s long-term renewable energy market.
ReNew Energy $9.33 billion investment in Andhra Pradesh is a big step for India’s renewable energy efforts. It includes solar manufacturing, storage systems, hybrid renewable projects, and green fuel production.
For the state, the projects offer job creation, energy security, and industrial growth. For India, they support national renewable energy targets and demonstrate the country’s commitment to cleaner energy.
The success of these projects will depend on execution, planning, and coordination among the company, governments, local communities, and supply chains. If done well, it could set a benchmark for future investments and contribute significantly to India’s transition toward a low-carbon economy.
The post ReNew Energy to Invest over $9 Billion to Boost Solar, Storage & Green Fuels in Andhra Pradesh appeared first on Carbon Credits.
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