The Science Based Targets initiative (SBTi) has just released its latest draft of the Corporate Net-Zero Standard: and it marks a meaningful evolution in how companies can use environmental attribute certificates (EACs) and carbon removals.
For years, the narrative has been simple: “SBTi doesn’t allow offsets.” The new draft strikes a more nuanced tone – and picks two clear winners: carbon removals and Environmental Attribute Certificates (EACs).
Thanks to the market leading work of Puro.earth everyone understands carbon removals.
So what are EACs?
They verify and transfer the “environmental benefit” of an activity. And they have been around for a long time in this market. They include renewable energy certificates (RECs), low-carbon fuel and material certificates. EACs provide traceable, third-party-verified proof that a specific environmental outcome: clean electricity, supply emissions reduction, materials reuse actually occurred.
EACs aren’t new (they’ve been around for decades). But the SBTi just gave them new prominence. RECs have long enabled companies to purchase certified renewable electricity, and clean fuel certificates underpin many low-carbon transportation schemes.
What’s different now is that SBTi has formally acknowledged the role of EACs within credible net-zero strategies. This is likely to elevate the entire category and drive attention toward emerging, high-impact commodity certificates, such as those for reused and refurbished IT assets, where circularity materially reduces Scope 3 emissions.
What’s changed in the SBTi draft?
🔹 Clear recognition of EACs—Companies can now use EACs in more defined, transparent ways, even if carbon credits still cannot replace value-chain reductions.
🔹 A formal role for carbon removals—Residual emissions can be counterbalanced with high-integrity removals.
🔹 A stronger place for Beyond-Value-Chain Mitigation (BVCM)—High-integrity credits, insets, and circular-economy projects are encouraged contributions.
For companies with net-zero targets their circular activities now have new meaning: activities such as e-waste reuse and refurbishment and use of low-carbon materials opens the door to SBTi aligned claims.
At Bloom ESG, we’re helping e-waste processors and OEMs generate and use high-integrity circular EACs through via our dedicated circularity registry – fully aligned with this evolving guidance.
Happy to discuss how this can strengthen your climate strategy.
P.S – did you like the cartoon? Let me know!
Sebastian Foot
Co-founder of Bloom Sustainability Advisors.20+ years sustainable finance experience.
